Under new IRC section 506, a new 501(c)(4) organization has 60 days from the date it is established to file notification of its status a 501(c)(4) organization with the IRS, and existing organizations have until 6/15/16 to file such notification. However, the IRS is in the process of issuing regulations on this matter, and organizations will have at least 60 days from the date such regulations are issued to file the notification.
Existing organizations should wait to submit the required notice until the regulations are issued and no penalty will be imposed under IRC section 6652(c)(4) so long as the notice is filed within 60 days after the regulations are issued. Generally, this notification requirement applies to: (1) all 501(c)(4) organizations established after 12/18/2015; (2) to those organizations that did not apply for such status using IRS Form 1024; and (3) to those organizations that have not filed at least one annual return or notice required under IRC section 6033 as of 12/18/15. The IRS Notice can be viewed at Notice 2016-9, 2016-6 IRB. Please call or email Jeff Senney at 937-223-1130 or Jsenney@pselaw.com for more information.