New IRS tax, penalties target doctors in deals with hospitals

The Internal Revenue Service (IRS) has the right to penalize doctors who profit from financial deals with nonprofit hospitals under legislation signed into law on Jul 31, 1996. The legislation also gives the IRS new legal recourse against individuals who illegally benefit from charitable institutions. The rules are contained within the 'Taxpayer Bill of Rights 2.' Hospital managers, trustees and directors will be affected by the legislation.
Doctors who negotiate cushy financial deals with nonprofit hospitals may face steep, new financial penalties if they hold 'substantial influence' over the tax-exempt organization. That's because a bill signed into [...]