This bill imposes a new reporting requirement under the Internal Revenue Code for certain investors with respect to certain specified medical care providers. Such investors must electronically file a separate annual return with respect to each medical care provider that contains information relating to gross receipts, real estate ownership, and other payments to related persons. The bill imposes a penalty on investors for failing to file complete and correct returns.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5825 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 5825
To amend the Internal Revenue Code of 1986 to provide for reporting by
certain investors with respect to certain specified medical care
providers.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 10, 2020
Mr. Neal introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide for reporting by
certain investors with respect to certain specified medical care
providers.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. REPORTING BY CERTAIN INVESTORS WITH RESPECT TO CERTAIN
SPECIFIED MEDICAL CARE PROVIDERS.
(a) In General.--Subpart A of part III of subchapter A of chapter
61 of the Internal Revenue Code of 1986 is amended by inserting after
section 6039J the following new section:
``SEC. 6039K. RETURNS BY CERTAIN INVESTORS WITH RESPECT TO CERTAIN
SPECIFIED MEDICAL CARE PROVIDERS.
``(a) In General.--Each reporting person with respect to any
specified medical care provider shall electronically file a separate
annual return with respect to each such medical care provider which
contains the information described in subsection (b).
``(b) Information Required.--With respect to each specified medical
care provider with respect to which the person is a reporting person,
such information as the Secretary may require relating to each of the
following:
``(1) Gross receipts.--
``(A) Amounts received by the specified medical
care provider as reimbursement for any item or service
under title XVIII of the Social Security Act.
``(B) Amounts received by the specified medical
care provider as reimbursement for any item or service
received under a State plan (or waiver of such plan)
under title XIX of the Social Security Act.
``(C) Amounts not described in subparagraph (A) or
(B) received by the specified medical care provider
pursuant to a negotiated rate with respect to any
provider of health insurance.
``(D) Amounts received by the specified medical
care provider in the sale of, or other arrangement with
respect to, any receivable arising in connection with
the provision of medical care.
``(E) Amounts not described in any preceding
subparagraph of this paragraph which are received by
the specified medical care provider for the provision
of medical care (and a separate statement of such
amounts which are received from any provider of health
insurance).
``(F) Gross receipts not described in any preceding
subparagraph of this paragraph (and divided into such
categories as the Secretary may provide).
``(2) Real estate.--
``(A) The addresses of all real estate owned or
leased by the specified medical care provider.
``(B) Amounts paid as principal or interest by the
specified medical care provider on any debt which is
secured by real estate (and a separate statement of
such amounts which are paid to the reporting person or
any person related to the reporting person).
``(C) Amounts paid by the specified medical care
provider as rent for real property (and a separate
statement of such amounts which are paid to the
reporting person or any person related to the reporting
person).
``(3) Other payments to related persons.--
``(A) Amounts paid as principal or interest by the
specified medical provider on any debt not described in
paragraph (2) to the reporting person or any person
related to the reporting person.
``(B) Amounts paid by the specified medical care
provider as rent for any property other than real
property to the reporting person or any person related
to the reporting person.
``(C) Amounts not described in subparagraph (A) or
(B) paid by the specified medical care provider to the
reporting person or any person related to the reporting
person (and divided into such categories as the
Secretary may provide).
``(4) Other information.--Such other information as the
Secretary may reasonably require.
``(c) Reporting Person.--For purposes of this section--
``(1) In general.--The term `reporting person' means, with
respect to any specified medical care provider, any person if--
``(A) such person holds an interest in such
specified medical care provider,
``(B) such person (or any person related to such
person) controls such specified medical care provider,
and
``(C) such person (or any person related to such
person) either--
``(i) is engaged in an applicable trade or
business with respect to which any interest in
such specified medical care provider is,
directly or indirectly, an expanded specified
asset, or
``(ii) receives any service from any person
engaged in an applicable trade or business
described in clause (i).
``(2) Applicable partnership interest requirement.--
``(A) In general.--A person shall not be treated as
a reporting person with respect to any specified
medical care provider unless one or more persons
receive or hold an applicable partnership interest with
respect to the applicable trade or business which is
referred to in paragraph (1)(C) with respect to such
specified medical care provider.
``(B) Applicable partnership interest.--The term
`applicable partnership interest' has the meaning which
would be given such term by section 1061(c) if the term
`applicable trade or business' had the meaning given
such term by paragraph (3) for purposes of such
section.
``(3) Applicable trade or business.--The term `applicable
trade or business' has the meaning which would be given such
term by section 1061(c)(2) if such section were applied by
substituting `expanded specified assets' for `specified assets'
each place it appears therein.
``(4) Expanded specified assets.--The term `expanded
specified asset' means any specified asset (as defined in
section 1061(c)(3)) and any interest in a partnership.
``(5) Control.--For purposes of paragraph (1)(B)--
``(A) except as provided in subparagraph (B),
control shall be determined under the rules of
paragraph (2) or (3) of section 6038(e), and
``(B) if the investment of any person described in
paragraph (1)(B) is coordinated with the investment of
any other person the investment of such other person
shall be treated as held by such person.
For purposes of subparagraph (B), investments of persons shall
not fail to be treated as coordinated if contractual
obligations exist (directly or indirectly) between such persons
with respect to such investments or the provision of any
services in connection with any applicable trade or business.
``(d) Specified Medical Care Provider.--For purposes of this
section, the term ` specified medical care provider' means any
corporation or partnership which--
``(1) is enrolled under section 1866(j) of the Social
Security Act,
``(2) is enrolled as a participating provider in a State
plan (or waiver of such plan) under title XIX of such Act, or
``(3) in the course of any trade or business which includes
the provision of medical care, employs any individual who is so
enrolled or certified.
``(e) Related Persons.--For purposes of this section, persons are
related to each other if such persons are described in section 267(b)
or 707(b)(1), determined by substituting `20 percent' for `50 percent'
each place it appears in such sections.
``(f) Regulations.--The Secretary shall prescribe such regulations
or other guidance as may be necessary to carry out the purposes of this
section, including--
``(1) the time and manner of filing the return required
under subsection (a),
``(2) rules to prevent, to the extent practicable, more
than one person from being required to report the same
information,
``(3) rules to prevent the use of intermediaries, agents,
nominee ownership, and other arrangements to avoid the
application of this section, and
``(4) rules to require reporting of information to any
person by any person related to such person to the extent that
such information is necessary for such person to determine if
such person is a reporting person, or is required to be
reported by such person under this section, and is not
otherwise available to such person.
``(g) Public Availability of Returns.--Annual returns filed under
this section shall be made available by the Secretary to the public as
soon as practicable in a machine readable format.''.
(b) Penalty for Failure To File Complete and Correct Return.--Part
II of subchapter B of chapter 68 of such Code is amended by adding at
the end the following new section:
``SEC. 6726. FAILURE TO FILE CORRECT INFORMATION RETURN WITH RESPECT TO
SPECIFIED MEDICAL CARE PROVIDERS.
``(a) In General.--In the case of any person's failure to file a
complete and correct return under section 6039K with respect to any
specified medical care provider (as defined in such section) at the
time and in the manner prescribed therefor, such person shall pay a
penalty of $5,000 for each such return for each day during which such
failure continues.
``(b) Maximum Penalty Per Return.--The maximum penalty under this
section on failures with respect to any 1 return shall not exceed
$1,000,000.
``(c) Deficiency Procedures Not To Apply.--Subchapter B of chapter
63 (relating to deficiency procedures for income, estate, gift, and
certain excise taxes) shall not apply with respect to the assessment or
collection of any penalty imposed by this section.''.
(c) Clerical Amendments.--
(1) The table of sections for subpart A of part III of
subchapter A of chapter 61 of such Code is amended by inserting
after the item relating to section 6039J the following new
item:
``Sec. 6039K. Returns by certain investors with respect to certain
specified medical care providers.''.
(2) The table of sections for part II of subchapter B of
chapter 68 of such Code is amended by adding at the end the
following new item:
``Sec. 6726. Failure to file correct information return with respect to
specified medical care providers.''.
(d) Effective Date.--The amendments made by this subsection shall
apply to returns with respect to taxable years of specified medical
care providers beginning after the date of the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported in the Nature of a Substitute (Amended) by Voice Vote.
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