SECTION 3. EFFECT

.01 In general . The IRS will not treat a hospital organization’s failure to meet a requirement of § 501(r) as a failure for purposes of § 501(r)(1) and 501(r)(2)(B) if the failure falls within the scope of section 4 and the hospital organization corrects the failure in accordance with section 5 and discloses the failure in accordance with section 6.

.02 Excise tax under § 4959 . Notwithstanding the treatment of a failure to meet a requirement of § 501(r) as not a failure under section 3.01 for purposes of § 501(r)(1) and 501(r)(2)(B), a hospital organization may be subject to excise tax under § 4959 for failures to meet the requirements of § 501(r)(3).