Title 26, Internal Revenue CodeRelease 119-102
§4959 Taxes on Failures by Hospital Organizations
Title 26 › Subtitle D — Miscellaneous Excise Taxes › CHAPTER 42 — PRIVATE FOUNDATIONS; AND CERTAIN OTHER TAX-EXEMPT ORGANIZATIONS › Subchapter D — Failure by Certain Charitable Organizations To Meet Certain Qualification Requirements › § 4959
Summary
A hospital that must follow the special IRS hospital rules but fails to meet the required test for any tax year must pay a tax of $50,000.
Full Legal Text
Title 26, §4959
Internal Revenue Code, Source: USLM XML via OLRC
If a hospital organization to which section 501(r) applies fails to meet the requirement of section 501(r)(3) for any taxable year, there is imposed on the organization a tax equal to $50,000.
Legislative History
Notes & Related Subsidiaries
Statutory Notes and Related Subsidiaries
Effective Date
Section applicable to failures occurring after Mar. 23, 2010, see section 9007(f)(3) of Pub. L. 111–148, set out as an
Effective Date
of 2010 Amendment note under section 501 of this title.
Reference
Citations & Metadata
Citation
26 U.S.C. § 4959
Title 26, Internal Revenue Code
Last Updated
Aug 21, 2026
Release point: 119-102