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Rev. Proc. 2018-10: New procedures for section 501(c)(4) applicants

New procedures for section 501(c)(4) applicants

The IRS today released an advance version of Rev. Proc. 2018-10 that modifies the annual revenue procedure for exempt organizations determination letters—Rev. Proc. 2018-5—to reflect the recent release of a new form for social welfare organizations described in section 501(c)(4) that choose to apply for recognition of tax-exempt status.

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Background

Form 1024-A, Application for Recognition of Exemption Under Section 501(c)(4) of the Internal Revenue Code, is to be used by organizations described in section 501(c)(4) that wish to apply for recognition of exemption. The IRS released Form 1024-A on January 16, 2018. Read TaxNewsFlash-Exempt Organizations

Rev. Proc. 2018-10

Rev. Proc. 2018-10 [PDF 55 KB] makes the following conforming amendments to Rev. Proc. 2018-5:

  • Organizations seeking determination letters from the IRS for recognition of section 501(c)(4) tax-exempt status are required to submit a completed Form 1024-A.
  • Form 1024-A may be signed by an officer, a director, a trustee who is authorized to sign, or a representative authorized by a power of attorney.
  • The requirement to sign under penalty of perjury is modified to include Form 1024-A.

Revised Rev. Proc. 2018-5 makes clear that section 501(c)(4) organizations generally are not required to file Form 1024-A but may do so if they wish to receive an IRS determination letter recognizing their tax-exempt status. Rev. Proc. 2018-10 also notes that submitting a Form 1024-A does not satisfy an organization’s obligation to notify the IRS that it is operating under section 501(c)(4). Read TaxNewsFlash-Exempt Organizations

The changes in Rev. Proc. 2018-10 are effective January 16, 2018.

 

For more information, contact a tax professional with KPMG’s Washington National Tax practice:

Alexandra Mitchell | +1 202 533 6078 | aomitchell@kpmg.com

Preston Quesenberry | +1 202 533 3985 | pquesenberry@kpmg.com 

Randall Thomas | +1 202 533 3786 | randallthomas@kpmg.com

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