I 
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 Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. REPORTING BY CERTAIN INVESTORS WITH RE-
SPECT TO CERTAIN SPECIFIED MEDICAL 
CARE PROVIDERS. 
(a) IN GENERAL.—Subpart A of part III of sub-
chapter A of chapter 61 of the Internal Revenue Code of 
1986 is amended by inserting after section 6039J the fol-
lowing new section: 
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‘‘SEC. 6039K. RETURNS BY CERTAIN INVESTORS WITH RE-
SPECT TO CERTAIN SPECIFIED MEDICAL 
CARE PROVIDERS. 
‘‘(a) IN GENERAL.—Each reporting person with re-
spect to any specified medical care provider shall electroni-
cally 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 So-
cial Security Act. 
‘‘(C) Amounts not described in subpara-
graph (A) or (B) received by the specified med-
ical care provider pursuant to a negotiated rate 
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with respect to any provider of health insur-
ance. 
‘‘(D) Amounts received by the specified 
medical care provider in the sale of, or other ar-
rangement with respect to, any receivable aris-
ing in connection with the provision of medical 
care. 
‘‘(E) Amounts not described in any pre-
ceding subparagraph of this paragraph which 
are received by the specified medical care pro-
vider 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 sep-
arate statement of such amounts which are paid 
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to the reporting person or any person related to 
the reporting person). 
‘‘(C) Amounts paid by the specified med-
ical 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
PER-
SONS.— 
‘‘(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 med-
ical 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 subpara-
graph (A) or (B) paid by the specified medical 
care provider to the reporting person or any 
person related to the reporting person (and di-
vided into such categories as the Secretary may 
provide). 
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‘‘(4) OTHER INFORMATION.—Such other infor-
mation as the Secretary may reasonably require. 
‘‘(c) REPORTING PERSON.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—The term ‘reporting per-
son’ 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 in-
terest in such specified medical care pro-
vider 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 RE-
QUIREMENT.— 
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‘‘(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 applica-
ble trade or business which is referred to in 
paragraph (1)(C) with respect to such specified 
medical care provider. 
‘‘(B) APPLICABLE
PARTNERSHIP
INTER-
EST.—The term ‘applicable partnership inter-
est’ 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 sec-
tion. 
‘‘(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 sub-
stituting ‘expanded specified assets’ for ‘specified as-
sets’ 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. 
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‘‘(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 de-
scribed in paragraph (1)(B) is coordinated with 
the investment of any other person the invest-
ment 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 invest-
ments 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 So-
cial 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 
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‘‘(3) in the course of any trade or business 
which includes the provision of medical care, em-
ploys any individual who is so enrolled or certified. 
‘‘(e) RELATED PERSONS.—For purposes of this sec-
tion, 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 ap-
pears 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 report-
ing person, or is required to be reported by such 
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