Title: To amend the Internal Revenue Code of 1986 to provide for reporting by certain investors with respect to certain specified medical care providers.
Policy area: Taxation

Summary:
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)]

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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.
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