Some tax-exempt hospital representatives are concerned that the Internal Revenue Service has implemented health care reform law requirements, in its recently released 2010 Schedule H and instructions, without going through the regulatory process. “It almost seems like the IRS is implementing its regulatory authority without having issued implementing regulations,” Michael Regier, senior vice president of legal and corporate affairs with VHA Inc., tells BNA. “It's Schedule H on steroids,” Kathleen Nilles, a partner with Holland & Knight, agrees, saying some have observed that IRS has short-circuited the rule-making process by including so much information on the form. On the other hand, she says she is pragmatically advising clients to use the Schedule H and its instructions as they would proposed regulations—that is, as a guide to compliance.
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