Warren, Grassley Pressure IRS To Crack Down on Nonprofit Hospitals Taking Advantage of Tax Code

Press Release

“While the promotion of health is an exempt purpose, not every entity that promotes health is entitled to a tax exemption. To qualify for a federal tax exemption based on the promotion of health, an organization must ‘primarily benefit the community.’ We are concerned that some nonprofit hospitals may fall short on this measure.

“To ensure that nonprofit hospitals uphold their charitable missions, we further urge the IRS to strengthen and enforce regulations under Section 501(c)(3) and 501(r) of the tax code that pertain to nonprofit hospitals."

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