Alexander Reid Quoted About Court Decision to Deny an Organization Tax-Exempt Status

News / May 17, 2023

Partner Alexander Reid was quoted in a Tax Notes article titled “Healthcare Group’s Tax-Exempt Status Rejected by Tax Court,” published May 17, 2023. This ruling upheld an IRS determination and denied a request for tax-exempt status from Memorial Hermann Accountable Care Organization because the organization “failed to show that its activities outside of its participation with the Medicare Shared Savings Program (MSSP) served a benefit to the public as required to qualify,” according to the article.

Reid told Tax Notes that longstanding practice had been to allow groups to engage in quite a bit of activity unrelated to social welfare, but the IRS is “changing its enforcement position,” even though that “should require a rulemaking,” he said.

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