Private practice activities held converted to exempt health care functions-part II

✍ Scribed by Bruce R. Hopkins

• Publisher: John Wiley and Sons
• Year: 1997
• Weight: 117 KB
• Volume: 14
• Category: Article
• ISSN: 0742-3497
• DOI: 10.1002/npc.3870140904

✦ Synopsis

did not actively solicit additional clientele for a meals (or food catering) business; (4) the organization did not take any steps to in- crease the per-meal charge, which was substantially below cost; and (5) there was no contract between the organizations.

Note: The IRS takes this stance only when the activity gives rise to a net loss. That is, the argument that the activity is not a business is not raised by the government i f the activity is turning apro_fit. However, see the discussion of American Academy of Family Physicians u. United States in the June 1995 issue, in which a "pro_fitable" undertaking was found by a court to not constitute a business. rl

PRIVATE PRACTICE ACTIVITIES HELD CONVERTED TO EXEMPT HEALTH CARE FUNCTIONS-PART II

This is the conclusion of a n article that began in the July issue.