Annual revenue procedure changes for exempt orgs | KPMG | GLOBAL

Annual revenue procedures for 2018, changes for exempt organizations

IRS annual revenue procedures

The first edition of the Internal Revenue Bulletin for 2018 (IRB 2018-1, dated January 2, 2018) provides six of the “annual revenue procedures” for 2018.

1000

Related content

Changes from the 2017 versions of the annual revenue procedures of interest for exempt organizations reflect the following (found in Rev. Proc. 2018-5):

  • The IRS will not issue a determination letter when an organization currently recognized as exempt under section 501(c) (other than a government entity) requests a determination to relinquish its exempt status under section 501(a).
  • Organizations applying for retroactive reinstatement of tax-exempt status under section 4 of Rev. Proc. 2014–11 (streamlined reinstatement) after being automatically revoked and that are seeking a foundation classification that is different from the classification they had at the time of revocation cannot use Form 1023-EZ.
  • The IRS changed certain exempt organization user fees. All section 501 applications (other than Form 1023-EZ applications) are subject to a flat user fee of $600. Group exemption letters are subject to a $2,000 user fee.

Read IRB 2018-1 [PDF 936 KB] which provides, in 280 pages, the following six annual revenue procedures:

  • Rev. Proc. 2018-1 - Letter rulings, information letters, and determination letters
  • Rev. Proc. 2018-2 - Technical advice
  • Rev. Proc. 2018-3 - Areas in which rulings will not be issued (domestic area)
  • Rev. Proc. 2018-4 - Determination letters and letter rulings (tax-exempt and government entities, employee plans)
  • Rev. Proc. 2018-5 - Determination letters (exempt organizations)
  • Rev. Proc. 2018-7 - Areas in which rulings will not be issued (international area) 

 

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

Greg Goller | +1 703 286 8391 | greggoller@kpmg.com

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

© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit