An audit of the Internal Revenue Service found some progress by the agency as it seeks to enforce new tax-exemption criteria for not-for-profit hospitals, but more work may be needed, auditors said.
The Treasury Inspector General for Tax Administration, which audited the agency from August 2011 to January, said the IRS has reviewed community benefit activity required by the Patient Protection and Affordable Care Act at 1,700 healthcare organizations.
Auditors said that progress may not be enough. A lack of published regulations at the time the audit made it hard to evaluate the IRS' oversight of tax-exempt hospitals, according to a report of the Treasury's findings (PDF). “Until guidance is published, the public cannot be assured that the IRS has implemented all controls to ensure compliance with ACA provisions designed to protect those served by tax-exempt hospitals,” the report said.