Schedule H Practice Website: An Educational Tool
American Hospital Association, Ernst & Young LLP, and Hogan & Hartson LLP
INTRODUCTION TO THE SCHEDULE H PRACTICE WEBSITE
The following "mock" Schedule H is a tool designed to help tax-exempt hospitals complete the Form 990, Schedule H.
This "mock" Schedule H presents questions in the order and format required by the Internal Revenue Service (IRS), provides a narrative explanation
and a link to IRS instructions for each question, and indicates whether a narrative response is required for each question. When a narrative
response is required by the Schedule, sample narrative responses have been provided. These sample narratives have been taken primarily from actual
Schedule H forms completed by hospitals in AHA's "Mock H" project. Due to the importance of Schedule H, appropriate hospital staff, including finance,
tax, and the community benefit department, should be involved in the collection of information and review of the completed schedule. This tool is not
intended to be a substitute for your Schedule H submission. For this reason, calculations have not been included on this site.
The filing organization must report on Schedule H information about licensed hospitals that are operated in the United States directly or indirectly
by the filing organization, including hospitals operated through a disregarded entity or a joint venture in which the hospital has an ownership interest.
The filing organization's proportionate share (as measured by its capital account percentage listed on Schedule K-1) of any hospital joint venture should
be included in response to all questions, and in all calculations on the worksheets. In addition, a filing organization must report information from other
facilities or programs of the organization or any disregarded entity, even if provided by a facility that is not a hospital or provided separately from the
hospital's license. Hospitals operated by entities organized separately from the filing organization that are treated as corporations for federal tax purposes
should not be reported on Schedule H, unless the filing organization files a group return and such corporations are members included in the group return.
Some questions on this Schedule H website include a notation suggesting that the question and/or instructions would benefit from further clarification by the IRS.
Those notations are an effort to suggest improvements to the Schedule for the benefit of filing organizations, the IRS, and the public who read and use these forms.
For example, some notations include the suggestion to allow a narrative for questions that may not require it.
Throughout the website, symbols are used to highlight areas of focus. The symbol is used to warn when a particular item requires special attention, as the
instructions may require clarity or the issues presented by the question may be of critical importance to correctly answering the Schedule H. The symbol is
used to indicate that the question requires additional narrative in Part VI of the Schedule H.
This Schedule H Practice Website is based upon the form and instructions provided by the IRS for year 2008. The IRS has released updated instructions for 2009. You can download
a .pdf of the 2009 instructions with changes from 2008 highlighted by clicking here.
The information on this Schedule H Practice Website is provided only as an interactive educational tool providing information related to the Form 990,
Schedule H. It is not intended to be, nor may it be construed as, legal or tax advice. Organizations are advised to consult their own legal and tax advisors
regarding the application of Form 990 and Schedule H to their specific circumstances.
Click here to continue on to the Schedule H Practice Website.