Potential penalty relief for organizations unable to file Form 8976

Relief for organizations unable to file Form 8976

The IRS today announced that “system outages” have affected the ability of certain section 501(c)(4) organizations to electronically file Form 8976 by the due date.

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According to an IRS transmittal message, an organization unable to timely submit the Form 8976, Notice of Intent to Operate Under Section 501(c)(4), due to a system outage is to submit its Form 8976 now, and the IRS will take system outages into consideration when evaluating the statutorily imposed penalties for late filing of the Form 8976. 

Additionally, the IRS asked organizations that experienced a problem submitting Form 8976 to contact it at (877) 829-5500, and the IRS states that it “…will work with [organizations] to ensure that [they] are not subjected to any penalties as a result of system outages.” Read additional information about the filing requirements for Form 8976 on an IRS webpage.

The requirement to file new Form 8976 applies only to certain organizations that intend to operate as a section 501(c)(4) organization and had not submitted a Form 990, 990-EZ, 990-N, or Form 1024 prior to July 8, 2016. 

 

Read a September 2016 report [PDF 58 KB] prepared by KPMG LLP: What’s News in Tax: Raising the Curtain: Notification Requirements for Social Welfare Organizations

 

For more information, contact the Managing Director-in-Charge of KPMG's Washington National Tax Exempt Organizations Tax group:

D. Greg Goller | +1 (703) 286-8391 | greggoller@kpmg.com

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