SECTION 4. 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 5 of this revenue procedure and if the hospital organization corrects and discloses the failure in accordance with sections 6 and 7 of this revenue procedure.

.02 Excise tax under § 4959. Unless a hospital organization’s failure to meet the requirements of § 501(r)(3) involves an omission or error that is described in and corrected in accordance with § 1.501(r)– 2(b) (and is thus not considered a failure), a failure to meet the requirements of § 501(r)(3) will result in a tax being imposed on the organization under § 4959, notwithstanding the organization’s correction and disclosure of the failure in accordance with sections 6 and 7 of this revenue procedure.