EO Tax Journal

Citizens for Responsibility and Ethics in Washington (CREW) has released an interesting report, reprinted below, that is noted in today’s New York Times, “Wife’s Charity Offers Corporate Tie to a Governor.” The article notes that a foundation set up by the wife of the governor of Louisiana “is among the newest of charities set up by elected officials, including members of Congress, or their families that are mutually beneficial: companies seeking to influence politicians or curry favor can donate unrestricted amounts of money, while the officials benefit from the good will associated with charitable work financed by businesses.”

For an earlier Times’ article on the same topic, see “Congressional Charities Pulling In Corporate Cash,” September 5, 2010, noted in Email Update 2010-125. Continue…

This weekend’s reading focuses on hospitals, but with two very different items. One is a submission by the American Bar Association regarding the application of new requirements imposed on tax-exempt hospitals by section 501(r). Pretty standard stuff. The other item is an article in the Washington Post that discusses medical restrictions imposed by Catholic hospitals.

I’m not aware that anyone has addressed in a law review article whether Catholic hospitals that restrict certain medical practices are not entitled to tax-exempt status based on a public policy argument. While the Post article does not raise this issue, it seems to me to be a lurking issue.

Query: If a hospital wants to be recognized as exempt under sections 501(c)(3) and 170(b)(1)(A)(iii), must it follow accepted medical practices? In the case of Catholic hospitals, can they deny medical care based on religious beliefs and still be exempt? If religious beliefs trump medical considerations, should Catholic hospitals be eligible for Medicare payments and other government benefits, the argument being that they are not following standard medical practices and hence in opposition to public policy?

While I have no answer, I think the issue is one of more than academic interest: Should hospitals have to follow accepted medical practices and standards of care in order to be described as a hospital under section 170(b)(1)(A)(iii)? Should theologians be making medical decisions? Should a Christian Scientist “hospital” that forbids surgical procedures be entitled to exemption? Should a homeopathic hospital be exempt? Should medical care that is being subsidized by the government be subject to restrictions based on scriptural interpretations? If anyone has any answers, I’m all ears. Continue…

About a month ago I noted the upcoming January 21 meeting of the EO Committee of the ABA’s Tax Section. While in due course I’ll have transcripts of the six sessions, I’m printing today the outline prepared by one of the IRS speakers, Michael Glass, an EO Group Manager, for those who won’t be in Florida on Friday, and as a canape for those who will. 

Exempt Organizations & Employment Tax Issues Continue…

Seems appropriate we should be talking about football bowl games this time of year, but first some roster changes for the EO Division.

1 – As 2011 Begins, Lots of Actors in EO Division at the IRS

3 – Bowl-bound Schools Spend Millions on Football Continue…

Is this the EO horror case of the year? Or is it the Hershey School? I thought Bobby Thompson was the guy who was famous for his “Shot heard ‘round the World.”

Navy Vets Leader Made an Unchecked Rise into Elite Circles
By Jeff Testerman and John Martin, St. Petersburg Times Staff Writers, December 27, 2010 Continue…