Thursday, March 4, 2021
The IRS has publicly released a March 1st Memorandum to Exempt Organizations Examinations Employees on "Interim Guidance on Verifying Forms 8976 Were Filed and Applicable Penalties". Section 501(c)(4) organizations that either came into existence after July 8, 2016 or while coming into existence earlier had not submitted either a Form 1024 or Form 990 series return (990, 990-EZ, or 990-N) on or before that date are required to file Form 8976 with the IRS to notify it of their existence. The requirement is codified in IRC section 506 and described in both Rev. Proc. 2016-41 and Treas. Reg. § 1.506-1.
The memo instructs those employees to do the following:
- Examiners must perform a filing check for Form 8976 during all examinations of IRC
Section 501(c)(4) organizations.
- If you determine that the organization failed to timely file a completed Form 8976,
consider the IRC Section 6652(c)(4) penalties.
Hat Tip: EO Tax Journal