IRS to Shift Focus More to Tax-Exempt Hospitals, Official Says

The IRS intends to concentrate more on tax-exempt hospitals, an agency official said during a conference Wednesday.

Lawmakers, including Sens. Elizabeth Warren (D-Mass.) and Chuck Grassley (R-Iowa), pressed the IRS and Treasury Department in August to examine whether nonprofit hospitals are abusing their tax status.

The Internal Revenue Service is focusing on tax-exempt hospitals due to the complexities in the sector, Edward Killen, commissioner of the tax-exempt and government entities division at the IRS, said at a virtual conference hosted by the American Bar Association’s tax section.

• Hospitals are required to show they provide “community benefit” to be considered tax-exempt—a ...