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New 501(c)4 Civic League Registration Requirement

By amtaxacc2829499, Jul 11 2016 04:30PM

The IRS is now requiring newly formed/ forming "social welfare" (Civic League) organizations to electronically file new Form 8976 Notice of Intent to Operate Under Section 501(c)(4). The PATH Act of 2015 authorizes the IRS to require the information within 60-days of formation under new Internal Revenue Code Section 506. Penalties for NOT filing within the 60-days is expensive at $20 PER DAY not to exceed $5,000.

Affected organizations are those established after the PATH Act was enacted December 18, 2015. Organizations that were established before December 18th, but had not yet applied for a tax-exemption determination or filed the annual return or notice were given 180 days to file the Form 8976. The latter organizations were then granted transition relief to file 60-days after the implementation of the final and temporary regulations--September 6, 2016.

Good news is that organizations established between December 18, 2015 and July 8, 2016 who either applied for determination of tax-exempt status or filed the annual return or notice do not have to file the 8976. And of course, those who qualify under reasonable cause may have the 60-day period extended.

Reasonable cause qualifications are described in Revenue Procedure 2016-41 .

Links: https://www.irs.gov/pub/irs-drop/rp-16-41.pdf


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