The Internal Revenue Service filed an appeal seeking to overturn a 2022 ruling that required the agency to repay $11.5 million to Rochester, Minn.-based Mayo Clinic.
The legal dispute dates to May 2016, when Mayo Clinic filed a lawsuit against the IRS in an attempt to recover tax payments the hospital said it was wrongly forced to pay. The case centered on whether Mayo Clinic is primarily an educational organization or a healthcare system, Becker’s reports.
Mayo Clinic contended it is an educational organization that makes patient care available as a necessary part of its education activities, while the IRS considers Mayo Clinic to be a parent company of a health system as its primary purpose. Under the IRS’ classification, more of the income generated by Mayo Clinic’s investments is taxable. Read more.
