The IRS has been told NOT to send debts of those with income less than 250% of the federal poverty level (FPL) to private debt collectors. National Taxpayer Advocate Nina Olson issued a directive ordering the IRS not to assign such cases to outside debt collectors. Olson said she’s concerned people will make tax payments even if they’re unable to pay basic living expenses. For 2018, the FPL ranges from $12,140 for a 1-person household to $41,380 for an 8-person family. The IRS must respond to the directive, either by agreeing or appealing, by 6/25/18.
How charitable are nonprofit hospitals? The Washington, D.C.-based Tax Policy Center recently published a report measuring the charitability of hospitals. Sens. Chuck Grassley (R-IA) and Orrin Hatch (R-UT) had asked the IRS for information on its oversight of nonprofit hospitals. The senators were “skeptical about whether some or many nonprofit hospitals actually operate as charities,” the report states. It presents a new tool to help assess whether a charity fully uses charitable resources. See the report here: https://tpc.io/2xRKy34