A look at the redesigned Form 990 and new schedule H

The IRS redesigned the Form 990, Return of Organization Exempt From Income Tax, for the first time in nearly 30 years. The final 2008 form, schedules, and instructions were released in December 2008. The redesigned form includes many additional reporting requirements. Hospitals, in particular, should pay close attention to new reporting requirements for compensation, governance, tax-exempt bonds, and a special Schedule H for charity care and community benefit reporting.

In a feature story, written by PwC's Exempt Organizations Tax Services Director Travis Patton in the February 2009 issue of Healthcare Financial Management, Patton discusses the redesigned Form 990 and new Schedule H, and outlines seven action steps that hospitals should consider to ensure they can and will meet the reporting requirements.

• Establish a working group to ensure thoroughness of reporting on the Form 990
• Find the gaps in the organization's readiness to file a complete Form 990
• Complete the entire Form 990 even the parts not required for tax year 2008
• Review existing policies and procedures for gathering needed information
• Refine the hospital's existing reporting on community benefit
• Start compensation disclosures early
• Take advantage of the opportunity to improve operational performance

For more information about these seven action steps and Patton's insights read, "The IRS's version of community benefit: A Look at the redesigned Form 990 and new schedule H".