In the first summit of its kind, the Texas Attorney General (AG), Greg Abbott, and members of his Charitable Trusts Section, Consumer Protection and Public Health Division, laid out their vision of the charity care statute in Texas with the intention of providing education to the non-profit hospital community regarding how to properly report charity care and community benefits under the Texas statute. First among the speakers was the chief auditor for the state who presented his ten "suggestions" for reporting and identified the most common pitfalls which have led to successful prosecutions by the AG’s office under the charity care statute.
In addition to this practical presentation and discussion from a Texas statute perspective, Steven Miller, commissioner of the Texas Exempt and Government Entities Division of the Internal Revenue Service (IRS) presented the IRS perspective on the new Form 990 and Schedule H. Miller intimated, during his discussion, that the IRS will be using the new information gathered as part of Schedule H, to evaluate more closely whether an entity is meeting a community benefits standard. He also addressed the scrutiny with which Congress is monitoring tax-exempt entities and their compliance with the community benefits standard. Miller indicated that the IRS would be reassessing the old 1969 "community benefit" standard sooner rather than later. Attendees were directed to understand thoroughly the new Schedule H and assess critically the manner in which they are claiming costs and reporting benefits to the IRS.