Tax News & Views: Health Care Edition


Tax News & Views: Health Care Edition

March 2023

Tax News & Views: Health Care Edition is a timely news summary bulletin authored by the Health Care Industry Group, Deloitte Tax LLP. The newsletter contains highlights from the latest tax developments in health care on Capitol Hill, at the White House, at the Internal Revenue Service, at the Treasury Department and in the courts. It is a valuable resource for tax and other professionals involved in the tax-exempt health care providers and health plans sectors, helping them remain current on tax developments that stand to have an impact on their businesses.

TE/GE Fiscal Year 2022 Accomplishments Letter

The Internal Revenue Service released its Fiscal Year 2022 Accomplishments Letter. The Letter discusses the Tax Exempt and Government Entities (TE/GE) accomplishments during the year, including:

  • Continued to develop compliance strategies and data-driven approaches using a combination of data analytics, machine learning, artificial intelligence algorithms and employee input and feedback.
  • As part of the compliance strategies, continued examinations to address hospital organizations with unrelated business income with a focus on unrelated business taxable income reported on Form 990-T, Exempt Organization Business Income Tax Return, where expenses significantly exceed gross income. Overall Exempt Organizations (EO) division completed examinations of 3,425 filings in fiscal year 2022, including the Form 990 series and their associated employment and excise tax returns.
  • As part of the data-driven examinations, EO initiated and continued data driven compliance examinations for organizations selected through compliance query sets based on information reported on Form 990, Form 990-EZ, Form 990-PF and Form 5527.
  • The most prominent issue found in the Exempt Organizations data-driven examinations relate to miscellaneous unrelated business income.
  • Undertook compliance checks to address compliance areas, including exempt organizations that failed to file Form 940, Employer’s Annual Federal Unemployment Tax Return, and Form 4720, Return of Excise Taxes, to report and pay excise tax under IRC section 4960 for excess remuneration paid to covered employees.
  • Completed 1,260 reviews of tax-exempt hospitals for adherence to Internal Revenue Code 501(r) and referred 67 hospitals for examination for possible noncompliance with the Affordable Care Act. The most common issues found continue to be related to a hospital’s lack of a Community Health Needs Assessment under IRC Section 501(r)(3) and Financial Assistance Policies under IRC Section 501(r)(4).
Tax News & Views: Health Care Edition - March 2023

Deloitte’s 2023 Global Health Care Outlook

The COVID-19 pandemic permanently changed global health care from accelerating the adoption of new technology and care delivery models to increasing the focus on sustainability and resiliency. What stands out most is that we will never be able to think about health care in the same way again.

Deloitte’s 2023 Global Health Care Outlook focuses on the current state of the sector and explores insights around international health policies, identifying emerging threats to public health, and how technology will change health care delivery over the next decade.

The report also examines the five key areas that are critical to this transformation, and we pose questions and suggest actions that professional can take to lead this transformation.

Download the report.

IRS Updated Frequently Asked Questions for Clean Vehicle Credits

Treasury and the IRS released an updated Fact Sheet in February 2023 answering frequently asked questions related to new, previously owned, and qualified commercial clean vehicle credits under IRC sections 30D, 25E and 45W. The revised Fact Sheet updates a prior version released on December 29, 2022.

Did you know?

Crypto Donations Must Have Appraisal
In a legal memorandum, the IRS concluded that a qualified appraisal is required for charitable contributions of cryptocurrency over $5,000 to qualify for a section 170(a) deduction, and a taxpayer may not rely instead on the value reported on a cryptocurrency exchange.

IRS Interest Rates for Q2 2023
Revenue Ruling 2023-4 reports the interest rates on overpayments and underpayments of tax per Internal Revenue Code Section 6621 effective beginning April 1, 2023. The rates will be 7% for overpayments [6% in the case of a corporation], 4.5% for the portion of a corporate overpayment exceeding $10,000, 7% for underpayments, and 9% for large corporate underpayments.

Did you know?

Additional Resources

Deloitte Center for Health Solutions
The source for health care insights: The Deloitte Center for Health Solutions (DCHS) is the research division of Deloitte’s Life Sciences and Health Care practice. The goal of DCHS is to inform stakeholders across the health care system about emerging trends, challenges, and opportunities.

Health Forward blog
Connect to the forces of change across life sciences and health care today. Explore our latest leadership insights to stay ahead of industry trends and key issues on health care, medtech, and biopharma.

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Navigating the complex unclaimed property environment
All companies have unclaimed property reporting obligations and, although not a tax, unclaimed property can be a significant source of revenue for states. Managing unclaimed property compliance risks and conforming to states’ requirements is as important now as ever as states ramp up audit efforts in the face of economic uncertainties. Participants will be able to better understand risk-related aspects of unclaimed property and ways to mitigate such risks, as well as obtain an understanding of recent unclaimed property trends and legislative activity.


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Financial accounting and reporting for income taxes: Important updates
In this session we’ll be looking back on the 2022 reporting season as well as looking forward to 2023. What income tax accounting matters should organizations be thinking about and how can they prepare for potentially significant changes in the global tax landscape? Participants will gain valuable insights into accounting for income taxes and the latest developments affecting financial reporting for taxes.

Multistate Tax
March 9
1 p.m. ET | 18 GMT 
Transfer Pricing
March 23
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Tax Accounting & Provisions
March 31
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