IRS Will Now Issue Determination Letters to Section 501(c)(3) Organizations Applying for Recognition Under a Different Paragraph of Section 501(c)

Useful Links

IRS.gov

Charities and Nonprofits
Homepage

EO FAQs

EO Forms and Instructions

EO Newsletter

Life Cycle

Tax Exempt Organization Search

A-Z Index

Calendar of Events

Stay Exempt

Free articles for your publications

Subscribe to the EO Update

Other IRS Resources

Contact My Local Office

e-file

Forms & Instructions

Frequently Asked Questions

News

Taxpayer Advocate

Where to File

IRS Social Media

Education Sessions

Revenue Procedure 2024-5, released on January 2, 2024, provides that EO Determinations will now issue a determination letter to an organization currently recognized as described in Section 501(c)(3) that seeks recognition as described in a different paragraph of Section 501(c). 

Section 3.01(1) of Rev. Proc. 2024-5 provides that EO Determinations will issue a determination letter to an organization currently recognized as described in Section 501(c)(3) that seeks recognition as described in a different paragraph of Section 501(c) if the organization establishes that as of the submission date of its application, it:

1. Has distributed its assets to another Section 501(c)(3) organization or government entity, and
2. Otherwise meets the requirements for the Section 501(c) status requested.

It further provides that the new determination letter will only be effective from the submission date of the new application.

Accordingly, an organization currently recognized as described in Section 501(c)(3) that seeks recognition as described in a different paragraph of Section 501(c) must:

1. Represent that its assets have been distributed as of the submission date of its application and provide a description of the assets distributed, the date of distribution and the name, EIN, and address of the recipient and
2. Agree to submission (postmark) date for recognition under the new paragraph of Section 501(c)

The required representation may be included with the organization’s supplemental responses in the single PDF file submitted with its Form 1024, Application for Recognition of Exemption Under Section 501(a) or Section 521 of the Internal Revenue Code, or Form 1024-A, Application for Recognition of Exemption Under Section 501(c)(4) of the Internal Revenue Code.

This procedure also applies to an organization automatically revoked under Section 6033(j) that was described in Section 501(c)(3) that seeks retroactive reinstatement as described in a different paragraph of Section 501(c).

Section 501(c)(3) organizations seeking to be recognized as described in Section 501(c)(4) are subject to the same requirement to file Form 8976 within 60 days of formation as new Section 501(c)(4) organizations.

An organization previously described in Section 501(c)(3) that submits Form 8976 within 60 days of seeking to be described in Section 501(c)(4) may have reasonable cause for not filing Form 8976 within 60 days of formation. Such an organization may seek reasonable cause relief from any penalty for late filing Form 8976 by following the instructions in the correspondence from the IRS regarding the penalty.

For the latest exempt organization news, connect via IRS Social Media and subscribe to this and other IRS Newsletters.

If you have a technical or procedural question about Exempt Organizations, visit the Charities and Nonprofits homepage on IRS.gov.

If you have a specific question about exempt organizations, please contact us.

Please do not reply to this message.