Lista De Articulos

• Requirements (to avoid recloracterization)
- Transaction changes the taxpayer’s economic position in a mainingful way (apart from federal / state income tax effects) and
- Transaction hasa substantial purpose (apart from federal / state income tax effects)


• Special Rules (in determining of above requirements are met)
- Pre-tax Profit - In order to take into account forthe purpose of meeting the above requirement, the PV of expected profit must be substantial in relation to PV of the expected net tax benefits.
- Financial Accounting Benefit – NOT a valid“substantial purpose” if benefit is because of reduction of tax
• Effective Date – Effective for transaction entered into after date of enactment.








Economic Substance – NewUnderpayment Penalties




- Transactions lacking economic substance
• Penalties
- 20 % accuracy – related penalty on underpayments
- 40 % penalty in the case of non-disclosedtransactions
• Reasonable Cause / Good Faith Exception – Not Applicable
• Erroneous Refund – 20 % penalty on the “excessive amount” request due to a transaction lacking economic substance
-Effective date – Effective for transactions entered into after date of enactment
- Estimated Revenue Raise - $ 4.5 billion ( over 10 years and combination with codification in previous slide)New Requirements for 5OI (c) (3)
Hospitals

- Applicable Entities – Any section 50I (c) (3) entity that operate a “hospital facility” (an entitymust meet these requirements with respect to each facility separately)
- New requirements
• Community Health Needs Assessment
- Conduct at least once every 3 years (and IRS reviews atleast once every 3 years)
- Adopt implementation strategy to meet community needs
- Report on implementation strategy on annual form 990
• Financial Assistance Policy – Adopt,...