IRS Delays Filing for Certain Tax-Exempt Hospitals

An automatic three-month extension of time to file the 2010 Form 990 has been granted to tax-exempt organizations that operate one or more hospital organizations and are required to file Schedule H, Hospitals, before August 15, 2011. IRS announcement 2011-20 states that hospital organizations cannot file their Form 990’s prior to July 1, 2011 regardless of whether the return is filed electronically or in paper form.

It is important to emphasize that this delay does not apply to any other tax-exempt organizations required to file Form 990, only those organizations required to file Schedule H.

Form 8868, Application for Extension of Time to File an Exempt Organization Return, is not required to be filed to take advantage of the automatic extension. However, those recently formed hospital organizations that did not file Form 990, Schedule H for tax year 2009, and who believe they are entitled to the automatic extension, are encouraged to file Form 8868 to reduce the risk of any incorrect assessment of penalties from the IRS.

If the hospital organization determines it needs additional time beyond the automatic extension to completely and accurately file its Form 990, it may request an additional three-month extension of time to file by completing and filing Form 8868, Part II. In no circumstances, however, may an affected hospital organization receive more than a six-month extension of time to file its 2010 Form 990 and related schedules.

Have questions? For further information, contact your HW&Co. Representative or Mary Eileen Vitale, Director of Tax Services.