Possible House Hearings on Exempt Status for 501(c) Groups - March 8, 2004 Vol.5, No.5

March 8, 2004 Vol.5, No.5:

Published: 03/08/2004

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Possible House Hearings on Exempt Status for 501(c) Groups

In a March 2 speech to the Federation of American Hospitals, House Ways and Means Committee Chair Bill Thomas (R-CA) said he wants the committee to investigate the benefits tax exempt groups give taxpayers, and consider whether more specific requirements should be imposed in exchange for exempt status. A committee spokesman said nothing has been scheduled.

Thomas’ speech raised the issue of similar activities by nonprofit and for-profit entities, such as credit unions and banks, saying, “Frankly there’s been a lot of activity over the last decade in the tax-preferred area -- the 501(c)(3)s, (c)(4)s, (c)(6)s -- that requires a broader examination of just what is it the taxpayers are getting for their money.” He said the issue was raised recently in a dispute between the American Hospital Association and the Department of Health and Human Services over hospital charges to uninsured patients.

A committee spokesman said the scope of any inquiry would be broad, and not confined to credit unions and hospitals.