Congress and the IRS continue to provide relief to alleviate hardships caused by the ongoing COVID-19 pandemic. Recent developments benefiting tax-exempt organizations include (1) passage of legislation that modifies and enhances a provision of the Coronavirus Aid, Relief, and Economic Security (CARES) Act intended to make it easier for nonprofits to benefit from an unemployment tax subsidy and (2) an extension of an IRS deadline for tax-exempt hospitals to complete their Community Health Needs Assessment (CHNA) requirements.
If S. 4209 is signed into law, its modification of the unemployment relief provision will assist affected organizations by allowing them to retain cash rather than waiting for reimbursement. The IRS extension of time for tax-exempt hospitals to comply with CHNA and implementation strategy requirements will help affected hospitals that otherwise are focused on workforce, community health, and other critical issues during the pandemic.
Health Services Tax Leader, PwC US