IRS Plans More Nonprofit Hospital Audits as Scrutiny Heats Up

The IRS will audit dozens of tax-exempt hospitals this year, a top agency official said.

The exams come amid continued criticism of nonprofit hospitals, which some lawmakers say are abusing their tax-exempt status by not providing enough charity care.

The agency intends to open 35 examinations in fiscal year 2024, Robert Malone, director of exempt organizations and government entities at the IRS, said Friday during a panel at the TEGE Exempt Organization Council Exempt Organizations Update. Hospitals are required to show they provide “community benefit” to retain their tax-exempt status.

“This strategy is in the early stage, so we ...