Federal Law Update: Ancillary Joint Ventures After ... - Honigman

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UCC: Functional Control Test • Functional test examining reality of control • Impact of UCC (7th Cir.): – Favorable terms alone may not show control – Distinguish control over entity vs. activity – Facts and circumstances is “no standard at all” • IRS may try to limit UCC to its facts now – Common type of arrangement (fundraising) – No control over actual “charitable activities”
TBOR2 Basics • Two-tier tax on disqualified persons receiving an excess benefit (25% + 200%) • Excess benefit includes – Receipt of more than fair market value – Revenue sharing (gross or net) resulting in inurement • Tax rate applies to amount of excess benefit – Excess over fair market value – Entire prohibited revenue sharing payment
Page 1 and 2: Federal Law Update: Ancillary Joint
Page 3 and 4: Areas not addressed • Non-tax con
Page 5 and 6: Audit Activity • Ongoing joint ve
Page 7: Defining “Insiders” • No Free
Page 11 and 12: Ancillary Joint Ventures •Two-pro
Page 13 and 14: Typical Whole Hospital Joint Ventur
Page 15 and 16: Ancillary Services Joint Venture (H
Page 17 and 18: Redlands Community Hospital Foundat
Page 19 and 20: Redlands: Why Not Exempt? • Sole
Page 21 and 22: Redlands: Why Not Exempt? • RSS w
Page 23 and 24: Expanded Control Test • Initiatio
Page 25 and 26: Community Benefit •New services
Page 27 and 28: Exemption Impact of 50/50 Ventures
Page 29 and 30: Other Structuring Options • Taxab
Page 31: Non-tax Considerations • Antifrau

Federal Law Update: Ancillary Joint Ventures After ... - Honigman

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