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UPDATE: 501(c)(4) Organizations Not Required To Provide Notice Until Treasury Issues Regulations
Tuesday, January 19, 2016

Under a new law, each 501(c)(4) organization will have to notify the IRS of the intent to operate as a 501(c)(4) organization; however, such notice will not be due until at least 60 days after regulations are issued implementing the notification procedures.

As reported in Inside Political Law on December 22, 2015, The Protecting Americans from Tax Hikes Act (PATH Act), added a new provision to the Internal Revenue Code that requires all newly-formed 501(c)(4) organizations to file a notice of registration with the IRS within 60 days of the organization’s formation.  The PATH Act also required certain 501(c)(4) organizations established prior to its enactment to file a notice within 180 days if they had not yet filed an exemption application (Form 1024) or annual information return (Form 990/990-EZ/990-N).

IRS Notice 2016-09 clarifies that organizations need not submit any notification until regulations are issued that implement the notification procedures.  According to Notice 2016-9,  the regulations will provide transitional rules for organizations to comply.  Once the procedure is established, section 501(c)(4) organizations that submit the required notice will receive an acknowledgment of the submission but will not receive a determination letter recognizing tax-exempt status unless a complete Form 1024 is submitted.

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