Читать книгу The Law of Tax-Exempt Healthcare Organizations - Bruce R. Hopkins - Страница 25

p. 336. Insert following last paragraph of the section:

Subsequently, the IRS issued final regulations regarding applying for recognition as a tax‐exempt qualified nonprofit health insurance issuer (QNHII)^79.1 These regulations became effective on January 29, 2015. The final regulations provide that the Commissioner of the IRS has authority to prescribe application procedures that must be followed by QNHIIs seeking recognition of tax‐exempt status. The regulations underscore the statutory application of notice rules to QNHIIs, requiring them to apply for recognition of exempt status and confirming that this is the only path for treating such organizations as described as tax‐exempt under this section of the Code.^79.2 Accordingly, QNHIIs cannot rely on self‐declaring their exempt status.

The final regulations authorize the Commissioner to recognize QNHIIs as tax‐exempt effective at a date prior to the date of its application if the application is properly and timely submitted and the QNHII's prior purposes and activities are consistent with the requirements for exemption for such organizations. However, if the IRS requires a QNHII to alter its activities or make substantive amendments to its enabling instrument, the IRS will recognize exemption effective only as of the date specified in the determination letter or ruling. In any event, an organization may not be recognized as tax‐exempt as a QNHII before the later of its formation or March 23, 2010.^79.3

A QNHII that has commenced operations and that intends to file an application with the IRS for recognition of exemption should begin filing Form 990 and indicate on its return that it has not yet received a determination letter. In addition to the general information required on Form 990, QNHIIs must report requested information regarding their required reserves.

The IRS published a revenue procedure containing more detailed provisions for requesting recognition of exemption shortly after the final regulations were issued.^79.4 Under this procedure, a QNHII seeking recognition of exemption must submit a letter application, rather than a form, along with the appropriate user fee. Requirements for a substantially completed letter application are set forth in the revenue procedure.