News Report | July 28, 2020
IRS Says For-Profit Health Care Provider Organizations Must Pay Taxes On CARES Act Provider Relief Fund Payments
On July 6, 2020, the Internal Revenue Service (IRS) clarified that for-profit health care provider organizations must pay taxes on payments from the Provider Relief Fund created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Non-profit health care provider organizations that receive Provider Relief Fund payments are generally exempt from paying taxes on the payment, according to the IRS. However, a non-profit provider organization may be subject to taxes on the payment if the provider organization used the payment to cover expenses or lost revenue attributable to an unrelated trade or business.
The IRS clarified . . .