Skip to Main Content
July 14, 2020

Health Law Daily

For-Profit Health Care Providers Must Pay Taxes On COVID-19 Provider Relief Fund Grants, IRS Clarifies

  • July 14, 2020

Modern Healthcare (7/13, Cohrs, Subscription Publication) reports, “The Internal Revenue Service clarified that for-profit healthcare providers will have to pay taxes on the grants they received from the COVID-19 Provider Relief Fund.” Although “the two laws that set aside $175 billion in grants to help providers cover lost revenue and coronavirus-related expenses didn’t explicitly state that the funds would be taxable,” guidance issued by the IRS says “that the grants are taxable income days before a tax filing deadline on July 15.” This “change means that grants to for-profit healthcare providers including hospitals and independent physician practices will be subject to the 21% corporate tax rate.”