The IRS has been examining nonprofit hospitals over compliance with IRC Section 501(r), which requires them to do a regular community health needs assessment. An unidentified hospital has had its 501(c)(3) tax-exempt status revoked over this issue, according to a Final Adverse Determination Letter just released. It’s a certainty that the IRS is examining other hospitals over this matter, so make sure you ask about it if an engagement involves this type of entity.