Exempt Organizations Update

The EO Update is a periodic newsletter with information for tax-exempt organizations and tax practitioners who represent them, from Exempt Organizations (Tax-Exempt and Government Entities Division) at the IRS.

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March 17, 2023

Two New Technical Guides Published

Exempt Organizations and Government Entities has published two new Technical Guides (TG). These guides are comprehensive, issue-specific documents that update and combine the IRS.gov Audit Technique Guides (ATG) with other technical content. Once completed, the TGs replace corresponding ATGs.

The latest TGs are:

• TG 1 Instrumentalities of the United States, Government Corporations, and Federal Credit Unions - IRC 501(c)(1)PDF
• TG 3-3 Exempt Purpose, Charitable IRC 501(c)(3)PDF

Extension of Time to File for Those in Federally Declared Disaster Areas

May 15^th is the due date for filing Form 990-series returns for most tax-exempt organizations, however some may have more time to file. Exempt organizations in federally declared disaster areas such as most of California and parts of Alabama and Georgia have until Oct. 16, 2023, to file. For details, see the disaster relief page on IRS.gov.

Registration Open for the 2023 IRS Nationwide Tax Forum

Registration is open for the in-person 2023 IRS Nationwide Tax Forums. The forums offer three days of seminars and workshops featuring speakers from both the IRS and tax practitioner organizations. In addition to getting the latest tax information, tax professionals can earn continuing education credits for their attendance. For more information visit IRS Nationwide Tax Forum.

Electronic Form 8940

As part of an ongoing effort to improve service for the tax-exempt community, the IRS is revising Form 8940, Request for Miscellaneous Determination, and its instructions to allow electronic filing for the first time.

Stay tuned to IRS.gov for more details regarding the release of the revised Form 8940.

Charitable Gaming: Understanding Your Responsibilities

Exempt organizations may generate income through gaming. The Charitable Gaming for Exempt Organizations course discusses gaming rules, documentation and possible tax implications. We encourage organizational leadership and volunteers to complete the Tax-Exempt Organization Workshop for important information on the benefits, limitations and expectations of tax-exempt organizations.

January 26, 2023

Technical Guide 58 Revised

Exempt Organizations and Government Entities Technical Guide (TG) 58, Excise Taxes on Self-Dealing under IRC 4941PDF, was revised to incorporate the recently released Chief Counsel Advisory (CCA) 202243008PDF. CCA 202243008 concludes that interest accrued on a self-dealing loan during years with a closed statute is included in the loan balance for computing the amount involved for IRC 4941 self-dealing excise taxes in years with an open statute.

Annual Revenue Procedures

Internal Revenue Bulletin 2023-01 released on January 3, 2023, included six revenue procedures of interest to Exempt Organizations:

• Revenue Procedure 2023-1
• Revenue Procedure 2023-2
• Revenue Procedure 2023-3
• Revenue Procedure 2023-4
• Revenue Procedure 2023-5
• Revenue Procedure 2023-7

See Exempt Organization Revenue Procedures for further details.

Employment Issues: A Charity's Treatment of Volunteers Can Affect Tax Responsibilities

If your organization has employees, independent contractors or volunteers, it may have tax or reporting responsibilities. The Employment Issues course explains how to classify workers and identify your tax withholding, paying and reporting responsibilities. We encourage organizational leadership and volunteers to complete the Tax-Exempt Organization Workshop for important information on the benefits, limitations and expectations of tax-exempt organizations.

Employment Tax Reminder

Important reminder to employers - the deadline for filing Forms W-2, W-3, and 1099-NEC is January 31, 2023. This IRS YouTube video (also available in Spanish) provides tips on filing these forms and avoiding penalties.

December 13, 2022

Three New Technical Guides Published

Exempt Organizations and Government Entities has published three new Technical Guides (TG). These guides are comprehensive, issue-specific documents.

TGs update and combine the IRS.gov Audit Technique Guides (ATG) with other technical content. Once completed, the TGs replace corresponding ATGs.

The latest TGs are:

• TG 0 Technical Guide OverviewPDF
• TG 3-4 Exempt Purpose, Scientific Organizations 501(c)(3)PDF
• TG 17 Supplemental Unemployment Benefit TrustsPDF

Deducting Charitable Contributions: Understanding Your Responsibilities

Donors often ask about contribution deductibility. The Can I Deduct My Charitable Contributions course explains the types of contributions that are deductible, which records to keep and how to report deductible contributions. We encourage organizational leadership and volunteers to complete the Tax-Exempt Organization Workshop for important information on the benefits, limitations and expectations of tax-exempt organizations.

October 17, 2022

International Charity Fraud Awareness Week October 17-21, 2022

Please join the IRS and other international organizations and regulators by participating in the annual International Charity Fraud Awareness Week (ICFAW), October 17-21, 2022. This is a free event and open to all. The international event is held to raise awareness and share best practices to detect, avoid and respond to fraud and financial crime. The ICFAW Resources webpage also has a list of useful links.

Understanding Disaster Relief Tax Law and Contribution Deductibility

The IRS offers online training for charitable organizations that assist with disaster relief. Disaster Relief – Parts I and II discuss how charities may provide disaster relief, deductibility of contributions to relief organizations and tax treatment of relief recipients. Organizational leadership and volunteers should complete the Tax-Exempt Organization Workshop for important information on the benefits, limitations and expectations of tax-exempt organizations.

Extended Due Dates for Those in Federally Declared Disaster Areas

The extended due date for filing Form 990 series returns for most organizations is November 15, however some may have more time to file. Exempt organizations in federally declared disaster areas who already had valid extensions may have their deadline extended. For details, see the disaster relief page on IRS.gov.

September 19, 2022

Newly published Technical Guide

Exempt Organizations and Government Entities recently published a new Technical Guide (TG). TGs combine and update the Audit Technique Guides (ATG) available on irs.gov with other technical content. Once completed, the TGs replace corresponding ATGs. TG 6 IRC 501(c)(6) Business LeaguesPDF is the latest in a series of these comprehensive, issue-specific documents.

How to maintain your organization's tax-exempt status

Leadership and volunteers of charitable organizations should be familiar with their responsibilities and the various actions that can jeopardize their organization's tax-exempt status. The Maintaining 501(c)(3) Tax-Exempt Status course discusses what charitable volunteers and employees must do to maintain this valuable exemption and which actions can result in revocation of exempt status. The Small to Mid-Size 501(c)(3) Organization Workshop provides additional information on the benefits, limitations and expectations of tax-exempt organizations.

New Issue Snapshot

Private Foundations: Incidental and Tenuous Exception to Self-Dealing Under Treas. Reg. 53.4941(d)-2(f)(2)

Issue Snapshots are IRS employee job aids that provide analysis and resources for a given technical tax issue. Visit Issue Snapshots on IRS.gov for a complete listing of available Issue Snapshots.

August 15, 2022

Form 990-N filers will use a new sign-in process beginning this summer

Beginning August 2022, smaller charities that are eligible and choose to file Form 990-N, Electronic Notice for Tax-Exempt Organizations (e-Postcard), must sign into the IRS modernized authentication platform using either their active IRS username or create an account with ID.me, the current IRS credential service provider.

When accessing the Form 990-N submission page, Form 990-N filers have three options:

1. Sign in with their active IRS username: Users with an active IRS username have the option to access the Form 990-N submission page using their existing IRS credentials or they can choose to create a new account with ID.me.
2. Sign in with their existing ID.me account: Users that have an ID.me account to access other IRS online services or from a state or federal agency can sign in using their existing ID.me account.
3. Create a new ID.me account: Users that don't have an active IRS username credential must register and sign in with ID.me.

ID.me account creation requires an email address and multifactor authentication. Form 990-N filers who have an existing IRS username and register for an ID.me account must use the same email address.

For Form 990-N filing instructions, see Publication 5248PDF, Form 990-N Electronic Filing System User Guide.

The filing process has not changed for organizations that file Form 990, Return of Organization Exempt from Income Tax, or Form 990-EZ, Short Form Return of Organization Exempt From Income Tax.

Free Online Training for Small to Mid-Sized Section 501(c)(3) Charities

The IRS provides interactive online training to help officers, board members and volunteers maintain your organization's Section 501(c)(3) tax-exempt status - including a course on filing Form 990-series annual returns. The Virtual Small to Mid-Sized Tax-Exempt Workshop at StayExempt.irs.gov is an important resource for all charities, old and new.

May 3, 2022

Help Improve IRS.gov – Participate in a Study

We want to make it easier for you to use our website by improving how it's organized.

Sign up to participate in our study and tell us how you want to find the information on IRS.gov that you need. After you schedule your study session, you'll receive an email from our research team with meeting details.

Who can participate in the study

• You must be at least 18 years of age.
• You must be an employer, small business owner or retirement plan administrator, or work for a charity or other tax-exempt organization.
• You MAY NOT be a current or past employee of the IRS or U.S. Department of the Treasury.

If you're unable to participate in this study, there will be future opportunities to help us improve the website.

If you have questions about this study, please contact us at irsgovtesting@irs.gov.

Nominations for 2023 Internal Revenue Service Advisory Council

The IRS is accepting applications for the Internal Revenue Service Advisory Council (IRSAC) through June 3, 2022. Members are appointed to three-year terms beginning in January 2023.

IRSAC is the advisory body to the IRS Commissioner and provides an organized public forum for discussion of relevant tax administration issues between IRS officials and representatives of the public.

IRSAC members are drawn from substantially diverse backgrounds representing a cross-section of the taxpaying public. Nominations of qualified individuals may come from individuals or organizations. The IRS is seeking applications from a variety of tax specialties, including individuals with substantial experience in retirement plans, charities and tax-exempt organizations.

The advisory council

• proposes enhancements to IRS operations.
• makes recommendations to improve taxpayer service, compliance and tax administration.
• discusses relevant information reporting issues.
• addresses matters concerning tax-exempt and government entities, including retirement plans.
• conveys the public's perception of professional standards and best practices for tax professionals.

For more information on IRSAC and how to apply, go to the IRSAC's webpage. If you have questions about the application process, please email us at publicliaison@irs.gov.

IRS Issues Notices CP2100 and 2100A to Help Payers Correct Backup Withholding Errors

The Internal Revenue Service issues CP2100 and CP2100A notices to financial institutions, businesses or payers who filed certain types of information returns that don't match IRS records. These notices are sent twice a year; an initial mailing in September and October and a second mailing in April of the following year. CP2100 and CP2100A notices inform payers the information return is missing a Taxpayer Identification Number (TIN), has an incorrect name or a combination of both. For more information see IR-2022-87, April 15, 2022.

For additional resources on backup withholding see:

• Backup Withholding Video

  Learn how to respond to the CP2100 and 2100A notices timely.

• Backup Withholding

  Learn what payments are subject to backup withholding.

• Taxpayer Identification Number (TIN) On-Line Matching

  Use the TIN Matching program to match your 1099 payee information against IRS records prior to filing information returns.

• TIN Matching Program Video

  Watch the video and learn to how to file valid Forms 1099 and avoid penalties and interest.

• Form 945, Annual Return of Withheld Federal Income Tax

  Use this form to report withheld federal income tax from nonpayroll payments, including backup withholding.

April 26, 2022

Reminder to Tax-Exempt Organizations: May 16 Filing Deadline

The Internal Revenue Service reminds tax-exempt organizations that many have a filing deadline of May 16, 2022. Those that operate on a calendar-year (CY) basis have certain annual information and tax returns they file with the IRS. These returns are:

• Form 990-series annual information returns (Forms 990, 990-EZ, 990-PF)
• Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990-EZ
• Form 990-T, Exempt Organization Business Income Tax Return (other than certain trusts)
• Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code

Mandatory electronic filing

Electronic filing provides fast acknowledgement that the IRS has received the return and reduces processing time, making compliance with reporting requirements easier.

Organizations filing a Form 990, 990-EZ, 990-PF or 990-T for CY2021 must file their returns electronically. Private foundations filing a Form 4720 for CY 2021 must file the form electronically. Charities and other tax-exempt organizations can file these forms electronically through an IRS Authorized e-file Provider.

Organizations eligible to submit Form 990-N must do so electronically and can submit it through Form 990-N (e-Postcard) on IRS.gov.

"To help exempt organizations comply with their filing requirements, the IRS provides a series of pre-recorded online workshops," said Robert Malone, Exempt Organizations and Government Entities Director. "These workshops are designed to assist officers, board members and volunteers with the steps they need to take to maintain their tax-exempt status, including filing annual information returns."

Common errors

The IRS also reminds organizations to submit complete and accurate returns. If an organization's return is incomplete or the wrong return for the organization, the return will be rejected. Common errors include missing or incomplete schedules.

Extension of time to file

Tax-exempt organizations that need additional time to file beyond the May 16 deadline can request a 6-month automatic extension by filing Form 8868, Application for Extension of Time To File an Exempt Organization ReturnPDF. In situations where tax is due, extending the time for filing a return does not extend the time for paying tax. The IRS encourages organizations requesting an extension to electronically file Form 8868.

Tax-Exempt Organization Complaint Process

If you suspect a tax-exempt organization is not complying with the tax laws, you may send information to the Tax Exempt and Government Entities Division. The IRS takes all complaints (or referrals) seriously and scrutinizes each one received. The IRS sends an acknowledgement letter to all non-IRS sources making a referral unless the referral was made anonymously. The IRS cannot disclose whether it has initiated an examination nor the results of an examination.

To make a referral of an exempt organization, submit Form 13909, Tax-Exempt Organization Complaint (Referral) FormPDF, and any supporting documentation by email to eoclass@irs.gov or mail to:

IRS EO Classification
Mail Code 4910DAL
1100 Commerce St.
Dallas, TX 75242-1198

March 25, 2022

IRS Suspends Mailing

The IRS is suspending the issuance of several notices generally mailed to tax-exempt or governmental entities in case of a delinquent return. Due to the historic pandemic, the IRS hasn't yet processed several million returns filed by individuals and entities. The suspension of the notices will help avoid confusion when a filing is still in process.

The IRS will continue to assess the inventory of pending returns to determine the appropriate time to resume mailing these notices. Some taxpayers and tax professionals may still receive the notices during the next few weeks. Generally, there is no need to call or respond to the notices as long as the return was filed timely.

The suspended notices are:

Three New Technical Guides Published

Exempt Organizations and Government Entities has published three new Technical Guides (TG). These guides are comprehensive, issue-specific documents. TGs combine and update the Audit Technique Guides (ATG) available on irs.gov with other technical content and will replace corresponding ATGs as they are completed. The newest TGs are:

• TG 23 Religious and Apostolic Associations IRC 501(d), Publication 5627, Exempt Organizations Technical GuidePDF
• TG 58 Excise Taxes on Self-Dealing under IRC 4941, Publication 5616, Exempt Organizations Technical GuidePDF
• TG 58 Excise Taxes on Self-Dealing under IRC 4941, Publication 5616, Exempt Organizations Technical GuidePDF

Previously Published TG Renamed

Previously published TG 3-8 Termination of Private Foundation Status IRC 507 has been renamed to TG 3-22 Termination of Private Foundation Status IRC 507PDF. No changes were made to the content of this TG; only the title was changed.

Registration Now Open for the IRS Nationwide Tax Forum

The 2022 Virtual IRS Nationwide Tax Forum will consist of a 5-week program of live webinars, beginning on July 19, 2022. Webinars will be offered every Tuesday, Wednesday, and Thursday for the 5-week duration.

Like the in-person Tax Forum, participants will pay a single price to register and have access to all live webinars. The full schedule and list of topics will be released in early April. Register for the Tax Forums at www.irstaxforum.com.

New Video: When to Use Forms 1099-MISC and NEC

Watch the new video, When to use Forms 1099-MISC and NEC, to know when to use Form 1099-MISC, Miscellaneous Information and Form 1099-NEC, Nonemployee Compensation. The video covers the 2021 updates to both forms. This video and others are available on IRSvideos.gov.

January 18, 2022

IRS revises Form 1024, Application for Recognition of Exemption Under Section 501(a) or Section 521 of the Internal Revenue Code, as part of ongoing efforts to improve service

As part of ongoing efforts to improve service for the tax-exempt community, the Internal Revenue Service issued the revised Form 1024, Application for Recognition of Exemption Under Section 501(a) or Section 521 of the Internal Revenue Code and its instructions to allow electronic filing.

Beginning January 3, 2022, applications for recognition of exemption on Form 1024 must be submitted electronically online at Pay.gov. The IRS will provide a 90-day grace period during which it will continue to accept paper versions of Form 1024 (Rev. 01-2018) and letter applications; however, after April 4 the Form 1024 must be submitted electronically.

As part of the revision, applications for recognition of exemption under Sections 501(c)(11), (14), (16), (18), (21), (22), (23), (26), (27), (28), (29) and 501(d) can no longer be submitted as letter applications. Instead, these requests must be made on the electronic Form 1024. Accordingly, organizations that are described in Section 501(c) (other than 501(c)(3) and (c)(4)) and 501(d) applying for tax-exempt status must now use the electronic Form 1024. Section 501(c)(3) organizations must continue to use Form 1023 or Form 1023-EZ, and Section 501(c)(4) organizations must continue to use Form 1024-A. Those forms also must be filed electronically.

Also, organizations requesting determinations under Section 521 are now able to use the electronic Form 1024 instead of Form 1028, Application for Recognition of Exemption Under Section 521 of the Internal Revenue Code.

See News Release IR-2022-02 for additional details.

Annual Revenue Procedures

Internal Revenue Bulletin 2022-1 PDF released on January 3, 2022, included five revenue procedures of interest to Exempt Organizations:

• Revenue Procedure 2022-1
• Revenue Procedure 2022-2
• Revenue Procedure 2022-4
• Revenue Procedure 2022-5
• Revenue Procedure 2022-7

See Exempt Organization Revenue Procedures for further details.

New Issue Snapshot

Private Foundations: Treatment of Qualifying Distributions IRC 4942(h)

Issue Snapshots are IRS employee job aids that provide analysis and resources for a given technical tax issue. Visit Issue Snapshots on IRS.gov for a complete listing of available Issue Snapshots.

Deducting Charitable Contributions: Understanding Your Responsibilities

Donors often ask about contribution deductibility. The Can I Deduct My Charitable Contributions course explains the types of contributions that are deductible, which records to keep and how to report deductible contributions. Organizational leadership and volunteers should complete the Tax-Exempt Organization Workshop for important information on the benefits, limitations and expectations of tax-exempt organizations.

December 20, 2021

Tax Exempt Organization Search (TEOS) Becomes Sole Source Point for Exempt Organizations (EO) Data

Beginning December 31, 2021, the publicly available data provided by the IRS on electronically filed Forms 990 will be available solely on the TEOS webpage on IRS.gov. The IRS will no longer update the Form 990 series data on Amazon Web Services. This change is to provide access to public data for organizations with tax-exempt status in one location.

See IRS News Release 2021-250 for further details.

December 13, 2021 (updated December 16, 2021)

IRS Revising Form 1024 to Allow for Electronic Submission

As part of an ongoing effort to improve service for the tax-exempt community, the IRS is revising Form 1024, Application for Recognition of Exemption Under Section 501(a), and its instructions to allow electronic filing for the first time.

Additionally, organizations requesting determinations under subsections 501(c)(11), (14), (16), (18), (21), (22), (23), (26), (27), (28), (29) and Section 501(d) that currently submit letter applications will use the electronic Form 1024. Organizations requesting determination under Section 521 will also be able to use the electronic Form 1024 instead of Form 1028, Application for Recognition of Exemption Under Section 521 of the Internal Revenue Code. Form 1024 will be revised accordingly.

The IRS expects electronic filing to be available early in 2022, at which point applications for recognition of exemption on Form 1024 must be submitted electronically online at Pay.gov. The IRS will provide a grace period during which it will continue to accept paper versions of Form 1024.

Stay tuned to IRS.gov for more details regarding the release of the revised Form 1024.

New Technical Guides Published

Exempt Organizations and Government Entities has published eight new Technical Guides (TG). These guides are comprehensive, issue-specific documents. TGs combine and update the Audit Technique Guides (ATG) available on IRS.gov with other technical content and will replace corresponding ATGs as they are completed. The newest TGs are:

• TG 3-21 Private Operating Foundations PDF
• TG 3-22 Termination of Private Foundation Status IRC 507PDF
• TG 57 Taxes on Net Investment Income IRC 4940PDF
• TG 59 Taxes on Foundation Failure to Distribute Income IRC 4942PDF
• TG 60 Taxes on Excess Business Holdings IRC 4943PDF
• TG 64 Foreign OrganizationsPDF
• TG 61 Taxes on Investments which Jeopardize Charitable Purposes IRC 4944PDF

LLCs Applying for Tax-exempt Status under Section 501(c)(3) Must Submit Information Described in Notice 2021-56

Notice 2021-56PDF sets forth current standards that a limited liability company (LLC) must satisfy to receive a determination letter recognizing it as tax-exempt under Internal Revenue Code Section 501(c)(3). Accordingly, an LLC applying for recognition of exemption on Form 1023, Application for Recognition of Exemption under Section 501(c)(3) of the Internal Revenue Code, must submit the following information as part of its completed application. Otherwise, LLCs continue to complete Form 1023 as described in the instructions for Form 1023PDF.

1. Submit both the LLC's state-approved articles of organization and its adopted operating agreement. Both your articles of organization and your operating agreement must contain the following:

• Provisions requiring that each member of the LLC be either (i) an organization described in Section 501(c)(3) and exempt from taxation under Section 501(a) or (ii) a governmental unit described in Section 170(c)(1) (or wholly owned instrumentality of such a governmental unit).
• An acceptable contingency plan (such as suspension of its membership rights until a member regains recognition of its Section 501(c)(3) status) in the event that one or more members cease to be Section 501(c)(3) organizations or governmental units (or wholly owned instrumentalities thereof).
• The charitable purposes and charitable dissolution clauses described in Part III, lines 1 and 2 of Form 1023.
• The express Chapter 42 compliance provisions described in Section 508(e)(1) if the LLC is a private foundation. See Part VII, line 1a of the Instructions for Form 1023 for more information on these provisions.

NOTE: If you are formed under a state LLC law that prohibits the addition of provisions to articles of organization other than certain specific provisions required by the state LLC law, you may include the provisions above only in your operating agreement. Include an explanation if you are prohibited from including the provisions in your articles of organization under your state's LLC law.

2. Submit the following representation, signed and dated by an officer, director, trustee or other governing body member (not an authorized representative):

"We represent that all provisions in our articles of organization and operating agreement are consistent with applicable state LLC law and are legally enforceable."

New Form 4506-B and Revised Form 4506-A

Exempt Organizations (EO) has developed and released a new Form 4506-B, Request for a Copy of Exempt Organization IRS Application or LetterPDF. Use the new Form 4506-B to request copies of an exempt organization's exemption application or determination letter. You can submit Form 4506-B by mail, fax or email. Tax Exempt Organization Search (TEOS) can be used to directly access copies of determination letters issued to exempt organizations in 2014 or later.

EO has also revised Form 4506-A, Request for a Copy of Exempt or Political Organization IRS FormPDF. Form 4506-A is used to request copies of an exempt or political organization's return, report or notice. You can mail or fax Form 4506-A to the IRS. Use TEOS for copies of Form 990‑N, Electronic Notice (e-Postcard), and for direct access to Form 990-series returns received by the IRS in 2017 or later. Check TEOS to see if the return you're requesting is available there before submitting Form 4506-A.

Please review the instructions for Form 4506-APDF (Rev. 11-2021) and instructions for Form 4506-BPDF (11-2021) before you submit the form. Submitting incomplete or incorrect information or sending to the incorrect mailing, fax or email address will cause delays.

Taxable Unrelated Business Income: Online Course

Even though your organization is tax exempt, it may generate taxable income. The Unrelated Business Income course explains how to determine if you have taxable income and how to report it. Organizational leadership and volunteers should complete the Tax-Exempt Organization Workshop for important information on the benefits, limitations and expectations of tax-exempt organizations. 

IRS News Releases

• IRS unveils new online identity verification process for accessing self-help tools
• IRS announces new online tool to help U.S. withholding agents validate their 1042-S data prior to filing

December 3, 2021

Public Announcement of Revocations in the IRB

Exempt Organizations Examinations expects to publish in the Internal Revenue Bulletin ("IRB") public announcements concerning the previous revocation of exempt status for 77 organizations. These publications, to occur during December 2021 and January 2022, will resolve a backlog of the IRB public announcements referenced in Revenue Procedure 2018-32, 2018-23 I.R.B. 739. As described in the revenue procedure, the IRS routinely makes a public announcement, which may be in the IRB, stating that an organization ceases to qualify as an organization eligible to receive tax-deductible charitable contributions. These 77 organizations have previously been removed from the listings on Tax Exempt Organization Search (Pub. 78 Data) and the Exempt Organizations Business Master File (EO BMF) Extract on IRS.gov of organizations eligible to receive tax-deductible contributions.

Understanding Disaster Relief Tax Law and Contribution Deductibility

The IRS offers online training for charitable organizations that assist with disaster relief. Disaster Relief – Parts 1 and II discuss how charities may provide disaster relief, deductibility of contributions and tax treatment of relief recipients. Organizational leadership and volunteers should complete the Tax-Exempt Organization Workshop for important information on the benefits, limitations and expectations of tax-exempt organizations.

October 19, 2021

International Charity Fraud Awareness Week October 18-22, 2021

Please join the IRS and other international organizations and regulators by participating in the annual International Charity Fraud Awareness Week (ICFAW), October 18-22, 2021. This is a free event and open to all. The international event is held to raise awareness and share best practices to detect, avoid and respond to fraud and financial crime. The ICFAW Resources webpage also has a list of useful links.

Program Letter FY2022

The Tax Exempt & Government Entities (TE/GE) Fiscal Year 2022 Program LetterPDF lists our priorities for this new fiscal year. We'll also use our Compliance Program and Priorities webpage to provide information about additional priorities as they are launched.

Our Fiscal Year 2022 compliance program and priorities align with the IRS Strategic Goals:

• Strengthen Compliance Activities
• Improve Operational Efficiencies
• Maintain a Taxpayer-Focused Organization
• Ensure Awareness and Collective Understanding
• Leverage Technology and Data Analytics
• Develop Our Workforce

We plan to release a summary of our Fiscal Year 2021 accomplishments during the first quarter Fiscal Year 2022. You can also view our annual program (or work plan) and accomplishment letters for previous years.

Extended due dates for those in federally declared disaster areas

The extended due date for filing Form 990 series returns for most organizations is November 15, however some may have more time to file. Exempt organizations in federally declared disaster areas who already had valid extensions may have their deadline extended. For details, see the disaster relief page on IRS.gov.

IRS Nationwide Tax Forums Online launches 18 new seminars

The Internal Revenue Service has 18 self-study seminars available for continuing education credit through the IRS Nationwide Tax Forums Online. The new seminars were recorded in July and August at the 2021 IRS Nationwide Tax Forum and can be reviewed for free. Tax professionals – CPAs, enrolled agents, Annual Filing Season Program participants and others – can earn continuing education credit for $29 per seminar.

October 8, 2021

Reconciliation of Payroll Webinar

You are invited to register for a free webinar on Payroll Reconciliation hosted by the Office of Federal, State and Local Governments on October 14, 2021 at 2:00 PM (ET). This webinar will cover when your payroll should be reconciled and what payroll amounts to use. It will also explain reconciling gross payroll to taxable income for federal income tax and FICA.

International Charity Fraud Awareness Week October 18-22

The IRS will again be participating in the annual International Charity Fraud Awareness Week (ICFAW) Oct. 18-22, 2021 to raise awareness and share best practices to detect, avoid and respond to fraud and financial crime.

Where's My Application for Tax-Exempt Status?

The IRS receives more than 95,000 applications for tax-exempt status each year. The webpage Where's My Application for Tax-Exempt Status? will help you determine when you can expect to hear from us. If your application was submitted after the postmark date in the chart, it has not yet been assigned to an Exempt Organizations specialist. Keep checking this web page for updates and await IRS contact. There is no need to call. If you submitted your application before the postmark date in the chart and the IRS has not contacted you regarding your application, the webpage tells you how to contact us to check on the status of your application.

New Issue Snapshot

Advertising Unrelated Business Taxable Income and 3rd Party Contractor Issues

Visit Issue Snapshots on IRS.gov for a complete listing of available snapshots.

September 15, 2021

Updated Procedures Related to Direct Contact in the Determination Process

On August 17, 2021, Exempt Organizations Rulings & Agreements (EO R&A) office issued Interim Guidance (IG) memorandum (TEGE-07-0821-0016) on Updated Procedures Relating to Direct ContactPDF in the Determination Process. If an organization submits a valid Form 2848, Power of Attorney and Declaration of Representative, with its application for recognition of tax-exempt status or during case processing, we will contact an authorized representative listed on the Form 2848 to discuss issues or items in the application. We will contact the primary contact person listed on the application if no valid Form 2848 was submitted or if we are unable to contact the authorized representative. See the IG for additional details. The procedural changes are being made to further ensure taxpayers' effective participation in the EO R&A determinations process, to promote consistency in determinations procedures across TE/GE, and to clarify our processes when the taxpayer authorizes a representative to assist.

Exempt Organizations Technical Guides

Technical Guides (TGs) are comprehensive, issue-specific documents that:

• Provide in-depth technical explanations
• Recommend specific issue identification and examination techniques
• Explain specialized business practices and terms
• Explore issues common to certain exempt organizations 

Exempt Organizations and Government Entities has been working to combine and update the Audit Technique Guides available on irs.gov with other technical content to create the TGs, which are comprehensive, issue-specific documents. The TGs will replace the corresponding ATGs as they are completed. You can find the first two TGs: TG 3-20 Introduction to Private Foundations and Special Rules under IRC 508PDF and TG 63 Disqualified Persons as Defined in IRC 4946PDF, on the IRS.gov "Charities and Nonprofits" "Education Resources and Guidance" page.

Payroll Reconciliation Webinar

You are invited to register for a free webinar on Payroll Reconciliation hosted by the Office of Federal, State and Local Government on October 14, 2021 at 2 p.m. (ET). This webinar will cover when your payroll should be reconciled and what payroll amounts to use. It will also explain reconciling gross payroll to taxable income for federal income tax and FICA.

How to Maintain Your Organization's Tax-Exempt Status  

Leadership and volunteers of charitable organizations should be familiar with their responsibilities and the various actions that can jeopardize their organization's tax-exempt status. The Maintaining 501(c)(3) Tax-Exempt Status course discusses what charitable volunteers and employees must do to maintain this valuable exemption and which actions can result in revocation of exempt status. The Small to Mid-Size 501(c)(3) Organization Workshop provides additional information on the benefits, limitations and expectations of tax-exempt organizations.

Revenue Procedure 2021-40

Revenue Procedure 2021-40PDF, released September 3, 2021, amplifies Rev. Proc. 2021-3, 2021-1 IRB 140, which sets forth areas of the Internal Revenue Code (Code) relating to issues on which the Internal Revenue Service (Service) will not issue letter rulings or determination letters. The revenue procedure announces that the Service will not issue letter rulings on whether certain transactions are self-dealing within the meaning of section 4941(d) of the Code. Specifically, the Service will not issue rulings on whether an act of self-dealing occurs when a private foundation (or other entity subject to section 4941) owns or receives an interest in a limited liability company or other entity that owns a promissory note issued by a disqualified person.

August 25, 2021

FIRE System Update Coming September 2021

Any filer, including corporations, partnerships, employers, estates or trusts who files 250 or more Forms 1097, 1042-S, 1098, 1099, 3921, 3922, 5498, 8027, 8955-SSA or W-2G for any calendar year must file their information returns electronically using Filing Information Returns Electronically (FIRE). FIRE is the online tool used to transmit information returns and automatic extension requests to the IRS. Before filers can use FIRE, they must complete an online application to obtain a 5-digit alphanumeric code known as a Transmitter Control Code (TCC). Currently, Form 4419 is used to request a TCC.

A new online application, Information Returns (IR) Application for Transmitter Control Code, is scheduled to deploy on September 26, 2021, and will replace Form 4419. The new application will be available on the FIRE page. For more information on FIRE changes, see FIRE System Update: Improving the Process and Security for Information Return (IR) Application for Transmitter Control Code (TCC).

Updated Video: Exploring the Charities and Nonprofit Webpage

View Exploring the Charities and Nonprofit Webpage video for a walk through of our recently updated webpage on irs.gov.

EIN Holders Must Update Any Change to Responsible Party

The IRS is urging those entities with Employer Identification Numbers (EINs) to update their applications if there has been a change in the responsible party or contact information.

IRS regulations require EIN holders to update responsible party information within 60 days of any change by filing Form 8822-B, Change of Address or Responsible Party - Business. It is critical that the IRS have accurate information in cases of identity theft or other fraud issues related to EINs or business accounts.

For more information see IR-2021-161, July 30, 2021.

New Issue Snapshot

Private Foundations: Amount Involved - Self-Dealing Lending of Money to Disqualified Persons IRC Section 4941(e)(2).

Visit Issue Snapshots on IRS.gov for a complete listing of available snapshots.

Deducting Charitable Contributions: Understanding Your Responsibilities

Charitable donors may ask about contribution deductibility. The Can I Deduct My Charitable Contributions course explains what donations are deductible, which records to keep and how to report them. Organizational leadership and volunteers should complete the Tax-Exempt Organization Workshop for important information on the benefits, limitations and expectations of tax-exempt organizations.

July 15, 2021

Electronic Filing Mandate for Form 990-EZ

The Taxpayer First Act, enacted July 1, 2019, requires tax-exempt organizations to electronically file information returns and related forms. The requirement to file electronically generally became effective for tax years beginning after July 1, 2019. However, for small exempt organizations, the legislation specifically allowed a postponement ("transitional relief"). As a result:

• For tax years ending before July 31, 2021, the IRS will accept either paper or electronic filing of Form 990-EZ, Short Form Return of Organization Exempt from Income Tax.
• For tax years ending July 31, 2021, and later, Forms 990-EZ must be filed electronically.

IRS will be sending an educational letter (Letter 6194) to organizations that filed paper Forms 990-EZ previously. There is no need to reply to the letter.

Register for the EO Webinar at 2021 Virtual IRS Nationwide Tax Forum

The 2021 Virtual IRS Nationwide Tax Forum consists of a 5-week program of live webinars beginning on July 20, 2021. IRS webinars are offered every Tuesday, Wednesday and Thursday for the 5-week duration. Registration information is available on the Tax Forums webpage

The "Charities & Tax-Exempt Organizations Update" webinar is Thursday, July 22 at 2pm EST. In this session, you'll learn about recent law and guidance changes and how those changes may affect your exempt organization. The webinar will also discuss electronic filing requirements that affect many tax-exempt organization returns. You must register for the Nationwide Tax Forum to attend this webinar.

Free Online Training for Small to Mid-Sized Section 501(c)(3) Charities

The IRS provides free interactive online training to help officers, board members, and volunteers maintain your organization's tax-exempt status at StayExempt.irs.gov. The Maintaining 501(c)(3) Tax-Exempt Status course discusses what responsibilities your organization has and what activities can jeopardize your organization's 501(c)(3) status. The Tax-Exempt Organization Workshop provides additional information on the benefits, limitations and expectations of tax-exempt organizations.

June 16, 2021

Update on Mandatory Electronic Filing for Form 4720 by Private Foundations

Section 3101 of the Taxpayer First Act requires certain exempt organizations to file information and tax returns electronically for tax years beginning after July 1, 2019. Private foundations required to file Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code, are included in the electronic filing mandate. Pending conversion of Form 4720 to electronic format, the IRS continued to accept the 2019 tax-year version of this return on paper. While software for the electronic version of Form 4720 has been under development, the IRS also continued to accept the 2020 tax-year version of Form 4720 from private foundations on paper. See Notice 2021-01, 2021-2 I.R.B. 315PDF.

The 2020 Form 4720 and its instructions have been updated for e-filing. As of the beginning of June 2021, several providers have made software available to file Form 4720 electronically. Information about software providers supporting electronic filing of Form 4720 can be found on the Exempt Organizations Modernized e-File (MeF) Providers page.

Any 2020, and any future year, Form 4720 filed by a private foundation with a due date on or after July 15, 2021, must be filed electronically and not on paper. A limited exception applies for 2020 Form 4720 returns with a due date on or after July 15 that are submitted on paper and bear a postmark date on or before June 16, 2021. Organizations other than private foundations that are required to file Form 4720 are encouraged, but not required, to file Form 4720 electronically.

Information on Notices Received After Paper Filing Form 990-EZ or Form 8868

The IRS is experiencing delays in processing paper returns, including Form 990‑EZ, Short Form Return of Organization Exempt from Income Tax, and Form 8868, Application for Extension of Time To File an Exempt Organization Return.

The IRS encourages organizations to file these forms electronically. If you file Form 990-EZ on paper, you may receive a prematurely-issued CP259A notice of non-filing. If you file Form 8868 on paper, there may be a delay in receiving CP211A notice confirming approval of your extension request. If you filed your return or extension request on paper, you do not need to take any further action. Please don't file a second return or contact the IRS about the status of your filing. We appreciate your patience.

Register for Free Webinar on Applying for Exemption – June 23

The Tax Exempt and Government Entities Division would like to invite you to register to watch the free Applying for Exemption Webinar.

When: Wednesday, June 23, 2021 at 1 - 2 pm ET

The webinar will:

• Explain what steps to take before applying to the IRS for recognition of tax-exempt status
• Discuss the various types of tax-exempt status available under the Internal Revenue Code and which forms are used to request them
• Review how to apply for recognition of tax-exempt status, including tips to shorten the application process.

May 14, 2021

Free webinar: Applying for Exemption

The Tax Exempt and Government Entities Division would like to invite you to register to watch the free Applying for Exemption Webinar on Wednesday, June 23, 2021, from 1 p.m. - 2 p.m. ET. Continuing education certificates of attendance will not be offered for this program.

Watch this free webcast to learn:

• Steps to take before applying to the IRS for recognition of tax-exempt status
• Various types of tax-exempt status available under the Internal Revenue Code and which forms are used to request them
• How to apply for recognition of tax-exempt status, including tips to shorten the application process

New Charities and Nonprofits landing page

If you have not already noticed, the Charities and Nonprofits landing page has undergone a makeover. Customer input and participation in our online surveys is helping us improve the webpage and make finding information easier.

Remember to register for the IRS Nationwide Tax Forum

The 2021 Virtual IRS Nationwide Tax Forum will consist of a 5-week program of live webinars beginning on July 20, 2021. Webinars will be offered every Tuesday, Wednesday, and Thursday for the 5-week duration. Register for the Tax Forums.

New Issue Snapshot

• Grants to Foreign Organizations by Private Organizations

Visit IRS.gov for a complete listing of available Issue Snapshots.

IRS to Terminate/Inactivate Enrolled Agents Who Haven't Renewed

The Internal Revenue Service has begun sending letters to Enrolled Agents (EAs) whose enrollment status was terminated or inactivated because of failure to renew.

EAs with SSNs ending in 7, 8, 9 or no SSN who have not renewed for the 2018 and 2021 cycles will have their enrollment placed in terminated status. Anyone in terminated status must re-take the Special Enrollment Examination (SEE) to apply for re-enrollment.

EAs with SSNs ending in 7, 8, 9 or no SSN who did not renew for the 2021 cycle will have their enrollment placed in inactive status. Anyone in inactive status can still submit a late renewal for approval; with proof of continuing education.

For additional information, go to Enrolled Agent News.

May 7, 2021

Reminder to tax-exempt organizations: 990s, other forms due on May 17; information and tools available to help

The Internal Revenue Service today reminds tax-exempt organizations that operate on a calendar-year (CY) basis that certain annual information and tax returns they file with the IRS are due on May 17, 2021. These returns are:

• Form 990-series annual information returns (Forms 990, 990-EZ, 990-PF, 990-BL)
• Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990-EZ
• Form 990-T, Exempt Organization Business Income Tax Return (other than certain trusts)
• Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code

Mandatory Electronic Filing

Organizations filing a Form 990, 990-PF or 990-N for CY2020 must file their returns electronically. Organizations filing Form 990-EZ for CY2020 received transitional relief and may file electronically or in paper.

To help exempt organizations comply with their filing requirements, the IRS provides a series of prerecorded online workshops. These workshops are designed to assist officers, board members and volunteers with the steps they need to take to maintain their tax-exempt status, including filing annual information returns.

"We want to make sure everyone in the exempt sector understands their obligations," said Robert Malone, Exempt Organizations and Government Entities Director. "The IRS offers an interactive walkthrough of the annual Form 990 filing process and other courses that board members and volunteers can take to learn about maintaining their charity's tax-exempt status."

Extension of Time to File

Tax-exempt organizations that need additional time to file beyond the May 17 deadline can request an automatic extension by filing Form 8868, Application for Extension of Time To File an Exempt Organization Return. An organization will be allowed a six-month extension beyond the original due date. In situations where tax is due, extending the time for filing a return does not extend the time for paying tax. The IRS encourages organizations requesting an extension to electronically file Form 8868.

Auto-revocation

Under Section 6033(j) of the Internal Revenue Code, organizations that fail to file their Form 990 series for three consecutive years automatically lose their exempt status. This is referred to as "auto-revocation." The IRS is experiencing delays in processing paper returns in our service centers. Although organizations may file their CY2020 Form 990-EZ in paper, the IRS is encouraging them to electronically file their Form 990-EZ. To avoid auto-revocation, this is especially important for organizations that did not file their information returns for CY2018 and CY2019.

Small tax-exempt organizations may be eligible to file Form 990-N to satisfy their annual information return requirement. These organizations need only eight items of basic information to complete the submission, which must be electronically filed. The Form 990-N due date cannot be extended, but there is no monetary penalty for late submissions. Although there is no monetary penalty for filing Form 990-N late, organizations that failed to file their required Form 990-N for CY2018 and CY2019, and file after May 17, 2021, are auto-revoked

What Can an Organization Do if Auto-revoked?

The IRS publishes a list of, and mails notices to, organizations whose tax-exempt status has been automatically revoked. The law prohibits the IRS from undoing a proper automatic revocation, but the IRS has procedures in place to assist organizations that believe they have been erroneously listed as auto-revoked. This includes situations where an organization has documentation that it met its filing requirement for one or more years during the three-consecutive-year period. For example, if an organization receives a notice of automatic revocation or is listed as auto-revoked effective May 17, 2021, but has documentation it filed a paper Form 990‑EZ or Form 8868 for CY2020 by that date, it can fax us the relevant information (an IRS receipt for a filed return, for example) at 855-247‑6123 to resolve the issue.

March 15, 2021

Update on mandatory electronic filing for Form 990-T

The Taxpayer First Act requires certain exempt organizations to file information and tax returns electronically for tax years beginning after July 1, 2019. Pending conversion of Form 990-T, Exempt Organization Business Income Tax Return, to electronic format, the IRS has continued to accept the 2019 tax-year versions of this return on paper.

The 2020 Form 990-T and its instructions have been updated for e-filing of returns with due dates on or after April 15, 2021. As of the beginning of March 2021, several providers have made software available to file Form 990-T electronically. Information about software providers supporting electronic filing of Form 990-T can be found on the Exempt Organizations Modernized e-File (MeF) Providers page.

Any 2020 Form 990-T with a due date on or after April 15, 2021, must be filed electronically and not on paper. A limited exception applies for 2020 Form 990-T returns submitted on paper that bear a postmark date on or before March 15, 2021.

New IRS 'Submit Forms 2848 and 8821 Online' offers electronic signature option and simplifies third-party authorizations

Did you know tax professionals and their clients can now electronically sign third-party authorization Form 2848, Power of Attorney, and Form 8821, Tax Information Authorization?

With the new tool Submit Forms 2848 and 8821 Online, tax professionals can now upload the forms directly to the IRS. Tax professionals enter their Secure Access username and password or complete a Secure Access registration to authenticate their identities. Forms signed by hand can also be uploaded.

For details, see IRS News Release, Fact Sheet 2021-1 or IRS Office of Professional Responsibility Director Sharyn Fisk's article in A Closer Look.

File Error-Free Form 1023-EZ Webinar now posted to IRS Video Portal

Thank you to those of you who attended the live webinar, but if you missed it, the recording of the File Error-Free Form 1023-EZ Webinar is designed to help smaller organizations that are filing for tax exemption determine:

• Who can use Form 1023-EZ to apply for tax exemption
• How to submit Form 1023-EZ
• The differences between Form 1023 and Form 1023-EZ
• Form 1023-EZ eligibility requirements

If you need more information after viewing the presentation, go to IRS.gov/charities.

Registration is now open for the IRS Nationwide Tax Forum

The 2021 Virtual IRS Nationwide Tax Forum will consist of a 5-week program of live webinars, beginning on July 20, 2021. Webinars will be offered every Tuesday, Wednesday, and Thursday for the 5-week duration.

Like the in-person Tax Forum, participants will pay one single price to register and have access to all live webinars. The full schedule and list of topics will be released in early April. Register for the Tax Forums at www.irstaxforum.com.

Taxable Fringe Benefit Essentials for Employers Webinar

The Tax Exempt and Government Entities Division and the Office of Federal, State and Local Governments would like to invite you to register to watch the free Taxable Fringe Benefit Essentials for Employers Webinar on April 14, 2021, at 1 p.m. (ET).

This webinar explains what a fringe benefit is and how to value a fringe benefit. It will cover the most common fringe benefits and explain if those fringe benefits are taxable.

For more information, see Webinars for Tax Exempt & Government Entities.

January 21, 2021

IRS webinar: File Error-Free Form 1023-EZ

The Tax Exempt and Government Entities Division invites you to register for the free File Error-Free Form 1023-EZ webinar on Thursday, February 4, 2021; 1 p.m. Eastern Time.

This webinar is designed to help smaller organizations that are filing for tax exemption determine:

• Who can use Form 1023-EZ to apply for tax exemption
• How to submit the form
• Differences between Form 1023 and Form 1023-EZ
• Form 1023-EZ eligibility requirements

For further details, see Webinars for Tax Exempt & Government Entities.

IRS revises Form 1024-A, application for Section 501(c)(4) tax-exempt status as part of ongoing efforts to improve service

IRS news release: As part of ongoing efforts to improve service for the tax-exempt community, the Internal Revenue Service issued the revised Form 1024-A, Application for Recognition of Exemption Under Section 501(c)(4) and its instructions to allow electronic filing.

Mandatory E-filing of Form 4720 by Private Foundations

Notice 2021-01 provides that, while subject to a delay, private foundations must electronically file Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code, as required by Section 3101 of the Taxpayer First Act of 2019 (Pub. L. No. 116-25), which amended Section 6033 of the Internal Revenue Code. Until the electronic Form 4720 is made available, private foundations may continue to use the paper form. Private foundations may no longer rely on Treas. Reg. § 53.6011-1(c) as a result of this electronic filing mandate.

Annual Revenue Procedures

Internal Revenue Bulletin: 2021-1 has been issued, which includes Revenue Procedure 2020-5, the annually updated procedures for issuing determination letters on issues under the jurisdiction of the Director, Exempt Organizations (EO) Rulings and Agreements. These procedures also apply to revocation or modification of determination letters. The revenue procedure also provides guidance on the exhaustion of administrative remedies for purposes of declaratory judgment under § 7428 and provides guidance on applicable user fees for requesting determination letters.

Section 2.01 of the revenue procedure describes notable changes that appear in this year's update, including:

• incorporating information and procedures from Rev. Proc. 2020-8 for the electronic submission of Form 1023;
• clarifying that Form 3115, Application for Change in Accounting Method, is not a request for a determination and to explain how a tax-exempt organization may change its method of accounting;
• reflecting that pursuant to Notice 2020-36, the Service will not accept any requests for group exemption letters until publication of the final revenue procedure described in the Notice or other guidance in the Internal Revenue Bulletin;
• providing clarification on relief under Treas. Reg. §§ 301.9100-1 through -3; and
• noting that additional guidance may be provided in the future to clarify the Independent Office of Appeals' role in matters covered by this revenue procedure.

Internal Revenue Bulletin 2021-1 also includes the following annually updated revenue procedures that may be of interest for tax-exempt organizations:

• 2021-1 This procedure contains revised procedures for letter rulings and information letters.
• 2021-2 This procedure explains when and how an Associate office within the Office of Chief Counsel provides technical advice, conveyed in technical advice memoranda (TAMs).
• 2021-3 The revenue procedure provides a revised list of areas of the Code relating to matters on which the Service will not issue letter rulings or determination letters.

Free Online Training for Small to Mid-Sized Section 501(c)(3) Charities

The IRS provides interactive online training to help officers, board members, and volunteers maintain your organization's tax-exempt status. The Virtual Small to Mid-Sized Tax-Exempt Workshop at StayExempt.irs.gov is an important resource for all charities, old and new.

January 8, 2021

Form 1099-NEC Awareness Day

The Tax Exempt and Government Entities Division (TEGE) invites you to join us for a free Zoom awareness meeting on either January 12, 2021 or January 14, 2021.

This meeting is designed to help exempt organizations understand the new Form 1099-NEC (Non-Employee Compensation) reporting requirements for the 2020 filing season. Each session is limited to the first 950 participants.

Dates and Times:

Several dates and times offered to maximize the reach of the event.

Tuesday January 12, 2021

• 9 a.m. Eastern - Meeting ID: 161 617 7980
• 2 p.m. Eastern - Meeting ID: 160 527 4160

Thursday January 14, 2021

• 11 a.m. Eastern - Meeting ID: 160 684 3808
• 4 p.m. Eastern - Meeting ID: 161 660 1009

Participants may also join via voice call using the following information:

Dial by your location and input the meeting ID when prompted:

• 669-254-5252​ US (San Jose)
• 646-828-7666​ US (New York)

Questions emailed to: tege.outreach@irs.gov with the subject line "Pre-submitted questions for the Form 1099-NEC Awareness Day" will be answered as time permits.

January 5, 2021

IRS revises Form 1024-A, application for Section 501(c)(4) tax-exempt status, as part of ongoing efforts to improve service

WASHINGTON – As part of ongoing efforts to improve service for the tax-exempt community, the Internal Revenue Service issued the revised Form 1024-A, Application for Recognition of Exemption Under Section 501(c)(4), and its instructions to allow electronic filing.

"Electronic filing will make the Form 1024-A application easier to complete while reducing errors," said Edward Killen, Acting Commissioner of the IRS Tax Exempt and Government Entities division. "Electronic filing also shortens IRS processing time so applicants won't wait as long for a response."

Beginning Jan. 5, 2021, IRS will make available the electronic version of the Form 1024-A that organizations seeking to be exempt under Section 501(c)(4) may use to submit online at Pay.gov. The IRS will provide a 90-day grace period during which it will continue to accept paper versions of Form 1024-A (Rev. 01-2018); however, after April 5 the Form 1024-A must be submitted electronically.

The required user fee for Form 1024-A will remain $600 for 2021. Applicants must pay the fee through Pay.gov when submitting the form. Payment can be made directly from a bank account or by credit or debit card.

Subscribe to Exempt Organizations Update, a free IRS e-Newsletter, for form updates and other exempt organization news.

Additional information on how to apply for IRS recognition of tax-exempt status:

• Applying for Tax-Exempt Status on IRS.gov
• Form 1024-A Electronic Filing Overview presentation on StayExempt.irs.gov

December 18, 2020

Year-end reminder: Expanded tax benefits help individuals and businesses give to charity during 2020 

The IRS today explained how expanded tax benefits can help both individuals and businesses give to charity before the end of this year.

The Coronavirus Aid, Relief and Economic Security (CARES) Act, enacted last spring, includes four temporary tax changes that are designed to help people and businesses who give to charity this year. Here is a rundown of these key changes.

Update on Mandatory E-Filing in 2021

The Taxpayer First Act, enacted July 1, 2019, requires tax-exempt organizations to electronically file information returns and related forms. The new law affects tax-exempt organizations in tax years beginning after July 1, 2019.

• Tax Year 2020 Forms 990-T & 4720 Are Being Revised and Will be Available for E-filing in 2021

In 2020, the IRS continued to accept paper Form 990-T, Exempt Organization Business Income Tax Return, and Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code, pending conversion into electronic format.

In 2021, these forms and instructions will be updated and e-filing will be required as described below.

For reporting on tax year 2020, the new Schedule A of Form 990-T will reflect separate reporting of each trade or business as required by the Tax Cuts & Jobs Act of 2017. Filers will report total unrelated business taxable income tax based on Schedule(s) A information and compute the tax on the Form 990-T.

On Form 4720, each taxpayer must file his or her own return. Taxpayers such as disqualified persons can no longer report their tax on the organization's return.

The IRS expects e-filing to be required for Form 990-T in February 2021 and Form 4720 in March 2021 for tax year 2020 filings. The IRS will announce the specific dates when the programming comes online.

• Transition of Form 990-EZ

For small exempt organizations, the legislation specifically allowed a postponement ("transitional relief"). For tax years ending before July 31, 2021, the IRS will accept either paper or electronic filing of Form 990-EZ, Short Form Return of Organization Exempt from Income Tax. For tax years ending July 31, 2021, and later, Forms 990-EZ must be filed electronically. Those who previously filed paper forms will receive a letter from the IRS informing them of the change.

• Forms 990 & 990-PF E-filing

Forms 990, Return of Organization Exempt from Income Tax, and 990-PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as Private Foundation, for tax years ending July 31, 2020 and later MUST be filed electronically. More information on software providers is available on the Exempt Organizations Modernized e-File (MeF) Providers page.

Unrelated Business Taxable Income Separately Computed for Each Trade or Business

The Treasury Department and the IRS issued final regulationsPDF under IRC Section 512(a)(6), which requires an exempt organization subject to the unrelated business income tax (UBIT) that has more than one unrelated trade or business to calculate unrelated business taxable income (UBTI), separately with respect to each such trade or business. The final regulations provide guidance on how an exempt organization subject to the UBIT determines if it has more than one unrelated trade or business, and if so, how it calculates UBTI.

Update to temporary e-signature memorandum for certain documents

With this memorandumPDF, the IRS is extending its temporary acceptance of certain images of signatures (scanned or photographed) and digital signatures on documents related to the determination or collection of tax liability until June 30, 2021. The IRS is also implementing a temporary deviation that allows IRS employees to accept documents via email and to transmit documents to taxpayers using some secured messaging systems.

Take "A Closer Look"

"A Closer Look" is a new column from IRS leadership that covers a variety of timely issues of interest to taxpayers and the tax community. It also provides a detailed look at key issues affecting everything from IRS operations and employees to issues involving taxpayers and tax professionals. A recent post written by Edward T. Killen, the Acting Commissioner of the Tax Exempt and Government Entities (TE/GE) division, deals with a special tax deduction for cash donations through December 31, 2020 to qualifying charities.

Check here for the latest posts and new updates.

New Issue Snapshots

• IRC 507(c), Imposition of Tax Upon the Termination of a Private Foundation
• IRC Section 4940(d), Exemption for Certain Operating Foundations

Visit IRS.gov for a complete listing of available Issue Snapshots.

IRS News Releases

• Special $300 tax deduction helps most people give to charity this year – even if they don't itemize (IR-2020-264, November 25, 2020)
• IRS to employers: Remember February 1, 2021 deadline for Form W-2, other wage statements (IR-2020-269, December 3, 2020)

November 20, 2020

IRS is revising Form 1024-A to allow for electronic submission

As part of an ongoing effort to improve service for the tax-exempt community, the IRS is revising Form 1024-A, Application for Recognition of Exemption Under Section 501(c)(4), and its instructions to allow electronic filing for the first time.

The IRS expects electronic filing to be available early in 2021, at which point applications for recognition of exemption on Form 1024-A must be submitted electronically online at Pay.gov. The IRS will provide a grace period during which it will continue to accept paper versions of Form 1024-A.

Stay tuned to irs.gov for more details regarding the release of the revised Form 1024-A.

New Issue Snapshots

• IRC Section 4942(g)(2), Certain Set-Asides
• IRC Section 4943(c)(7), Extension of Period to Dispose of Certain Assets

Visit IRS.gov for a complete listing of available Issue Snapshots.

Online training for small and mid-size 501(c)(3) organizations

The IRS provides interactive online training to help your organization maintain its exemption at stayexempt.irs.gov. Its Virtual Tax Exempt Organization Workshop helps organizational leadership and volunteers understand the benefits, limitations and expectations for exempt organizations.

October 26, 2020

Information about Automatic Revocation and Filing Extensions Provided by Notices 2020-23 and 2020-35

The charity reform subtitle of the Pension Protection Act of 2006 revokes the exempt status of an organization that fails to file the required Form 990 for three consecutive years ("auto-revocation"). Under the pandemic, this year the IRS extended filing dates from April 1 through July 14 to July 15, 2020, by Notices 2020-23PDF and 2020-35PDF. Due to systemic limitations, we were unable to update this deadline in the program that automatically issues notices of revocation. This caused some revocation notices to be issued prematurely. Nevertheless, the IRS prevented eligible organizations that attempted to file electronically by July 15 from being listed as automatically revoked on IRS.gov, where they are still shown as tax exempt. At the same time, we are processing paper filings which allow the reversal of auto-revocation for those filers. The IRS is reviewing the cases and corresponding with organizations that received the premature notice. Additionally, we have dedicated fax number (855) 247-6123​ to receive correspondence from organizations in this situation that wish to present documentation of their applicable filings.

2020 Form 990-T, Exempt Organization Business Income Tax Return

The Form 990-T is being revised for tax year 2020 to allow for e-filing in calendar year 2021 (reporting on tax year 2020), as required by the Taxpayer First Act. Revisions are also being made to improve its utility for reporting unrelated business taxable income consistent with the 'siloing' rules of Section 512(a)(6) as put in place by the Tax Cuts and Jobs Act. The 2020 Form 990-T separates the tax computation (which will be on Form 990-T) from reporting of separate unrelated trades or businesses, which will be on as many Schedules A (Form 990-T) as the organization needs. Both Form 990-T and Schedule A (Form 990-T) are now available for preview on the Draft Forms webpage at IRS.gov/draftforms.

New Technical Advice Memorandum (TAM): Royalty or Service?

Newly released TAM 202039018PDF contemplates whether the Section 512(b)(2) royalty exclusion applies to an online job placement service. The TAM concludes based on the facts and circumstances of that case that the income was not excluded as royalty income under IRC Section 512(b)(2). The operation of an online job placement service constituted income from an unrelated trade or business subject to tax under IRC Section 511.

Issue Snapshot

• IRC Section 4945(g) Individual Grants

October 5, 2020

Worker Classification Webinar

The Tax Exempt and Government Entities Division would like to invite you to register to watch the free Worker Classification Webinar on October 7, 2020 at 1:00 p.m. (ET).

This webinar is designed to help government and private sector entities understand the definition of an employee and determine whether a worker is an employee or independent contractor. It will also cover Form SS-8, Classification Settlement Agreements and what to do if an individual is an employee.

Questions emailed to: tege.outreach@irs.gov with subject line "Pre-submitted questions for the Workers Classification webinar (October 7)" will be answered as time permits.

For further details, see Webinars for Tax Exempt & Government Entities.

Help Improve the Tax Exempt Organization Search (TEOS) Experience

Take a 2-minute survey to help us improve the Tax Exempt Organization Search webpage. Visit Tax Exempt Organization Search and look for the blue "Feedback" tab on the right side of the webpage. Your response to the survey will help us improve your experience.

Enrolled Agent (EA) Inactivation/Termination Letters

The annual clean-up of EAs with SSNs ending in 4, 5, or 6 who did not renew during this year's renewal cycle was completed in July and letters were sent late August. If you did not renew during the 2017 and 2020 cycles, go to the Enrolled Agent News for how to reactivate.

New form for businesses and other entities to report identity theft

If you think someone is using your business name or Employer Identification Number (EIN) to submit fraudulent tax returns or Forms W-2, complete and submit Form 14039-B, Business Identity Theft AffidavitPDF), to report identity theft to the IRS. This form is for use by businesses, trusts, estates and tax-exempt organizations. To prevent processing delays, make sure to submit all the requested documents and sign Form 14039-B.

For information on identity theft and when to file Form 14039-B, go to Report Identity Theft for a Business and the Identity Theft Central webpages.

Reminder: Most small organizations can file Form 990-N

Most small tax-exempt organizations whose annual gross receipts are normally $50,000 or less can satisfy their annual reporting requirement by electronically submitting Form 990-N.

Visit Form 990 Series Which Forms Do Exempt Organizations File Filing Phase In and the Interactive Form 990 Overview Training on StayExempt.irs.gov to learn more.

Did you know?

The Freedom of Information Act Library on IRS.gov contains publicly available information such as IRS instruction manuals and links to common publications and notices.

August 14, 2020

Church Waivers for Refund Claims and Abatement Requests

On July 15, 2020, the IRS issued interim guidance (IG)PDF providing instructions to examiners on how to inform churches of the option to authorize the Service to consider church claims for refund or requests for abatement without following the otherwise applicable procedures of Internal Revenue Code (IRC) Section 7611. The IRS generally must follow several procedural steps under Section 7611 before it can commence an inquiry or examination of a church.

Section 7611 and the related regulations permit a church to waive the application of these procedures by submitting a written waiver. Absent a waiver, the IRS follows these procedures even if the church initiated the contact. For example, if the IRS is requesting information to verify and process a church's claim for refund or request for abatement.

As described in the IG, the IRS developed a voluntary written waiver process to allow more expeditious processing of these claims or requests. The process is applicable only in the case of claims for refund or requests for abatement. Where applicable, the IRS will contact a church in writing to offer the option to execute a written waiver allowing the IRS to consider its claim or request without following the procedures contained in Section 7611. The church is under no obligation to agree to a waiver.

If the organization doesn't respond by the response due date or indicates they are not authorizing a waiver, the IRS will continue processing the claim by following Section 7611 procedures and issuing a Notice of Church Tax Inquiry.

Additional Relief for deadlines under Section 501(r)(3) Applicable to Hospital Organizations Affected by COVID-19

Notice 2020-56 postpones until December 31, 2020, the due date for any Community Health Needs Assessment (CHNA) that was due to be conducted and for any implementation strategy that was due to be adopted on or after April 1, 2020, and before December 31, 2020.

Hospitals using the relief in the Notice that file Form 990 prior to December 31, 2020, should state in the narrative of Part V, Section C of Schedule H (Form 990) that they are eligible for and are relying on the relief provided in the notice, and should not be treated as failing to meet the requirements of Section 501(r)(3) prior to December 31, 2020. See the Notice and IR-2020-156 for more information.

Survey: Help Improve the Tax Exempt Organization Search (TEOS) Experience

Take a 2-minute survey to help us improve the Tax Exempt Organization Search webpage. Visit Tax Exempt Organization Search and look for the blue "Feedback" tab on the right side of the webpage. Your response to the survey will help us improve your experience.

IRS News Releases

• IRS provides guidance on recapturing excess employment tax credits
• IRS unveils "Dirty Dozen" list of tax scams for 2020; Americans urged to be vigilant to these threats during the pandemic and its aftermath
• IRS is sending letters to those experiencing a delay with advance payment of employer credits
• IRS announces 2021 PTIN fees for tax return preparers

IRS Operations During COVID-19: Mission-critical functions continue

The IRS has updated its operations page on IRS.gov with several items related to the status of IRS operations, including several items related to compliance activity.

July 15, 2020

Subject: Annual filings, user fees and electronic filing mandates

Annual filings and tax returns/payments due July 15, 2020

The extended deadline for a variety of information and tax returns and many tax payments is July 15, 2020. If you are unable to meet the July 15 deadline, you may want to review the extension procedures for exempt organization returns and information on the penalties for not filing.

EO user fee changes effective July 1, 2020

Revenue Procedure 2020-5 included user fee changes for certain miscellaneous determination requests submitted on Form 8940 that are effective July 1st. See Appendix A of Rev. Proc. 2020-5 for a schedule of user fees.

Electronic filing mandate for Forms 990 and 990-PF

Effective for tax years beginning after July 1, 2019, the Taxpayer First Act requires organizations exempt from taxation under section 501(a) to file their annual Form 990 and Form 990-PF returns electronically, unless covered by one of the exceptions listed in the form instructions. Form 990-EZ filers are required to file electronically for tax years ending July 31, 2021, and later. This IRS News Release contains a summary of e-filing requirements.

IRS will be sending an educational letter (Letter 6194) to organizations that filed paper Forms 990 or 990-PF prior to 2019. There is no need to reply to the letter.

IRS Nationwide Virtual Tax Forums for 2020

The 2020 IRS Nationwide Tax Forums series of live-streamed webinars begins July 21, 2020. Registration information is available at www.irstaxforum.com. You may review the webinar schedule, session descriptions and FAQs. The Charities & Tax-Exempt Organizations Update will be held on Wednesday, July 22 at 2 p.m. - 3 p.m. ET.

June 12, 2020

IRS solicits public comments on proposed changes to group exemption letter program; will temporarily stop accepting requests for group exemption letters on June 17, 2020

Notice 2020-36 PDF contains a proposed revenue procedure that sets forth updated procedures under which recognition of exemption from federal income tax for organizations described in Section 501(c) of the Internal Revenue Code may be obtained on a group basis for subordinate organizations affiliated with and under the general supervision or control of a central organization. The IRS requests comments on all aspects of the proposed revenue procedure, including applicable grandfather and transition rules. Comments should be submitted on or before August 16, 2020.

Pending publication of the final revenue procedure in the Internal Revenue Bulletin, Rev. Proc. 80-27PDF continues to apply. However, the IRS will not accept any requests for group exemption letters beginning June 17, 2020, until publication of the final revenue procedure or other guidance.

IRS, Treasury issue guidance for applying UBTI 'silo' rules for tax-exempt organizations by identifying separate trades or businesses

The Treasury Department and IRS announced proposed regulations under the Tax Cuts and Jobs Act (TCJA) that provide guidance for tax-exempt organizations with more than one unrelated trade or business on how to calculate their unrelated business taxable income (UBTI).

Changes under the TCJA require tax-exempt organizations subject to the UBTI tax to compute UBTI, including any net operating loss deduction, separately for each trade or business (referred to as a "silo") for tax years beginning after December 31, 2017. The proposed regulations provide guidance on identifying separate trades or businesses, including investment activities, as well as certain other amounts included in UBTI.

Updates on the implementation of the TCJA can be found on the Tax Reform page of IRS.gov.

Common errors to avoid when filing for advance payment of employer credits

Employers filing Form 7200, Advance Payment of Employer Credits Due to COVID-19, should read the instructions carefully and take their time when completing the form to avoid mistakes and prevent processing delays.

The following are some common errors to avoid when filling out Form 7200:

• Missing or inaccurate Employer Identification Number. Each EIN should be exact. Taxpayers must complete this box.
• Check only one box for the applicable calendar quarter. Only one box should be checked for the correct quarter. 
• Check only one box for Part 1, Line A. 
• Make sure to complete Part 1, Line B. In Part 1, Line B check either Yes or No.
• Complete Part II, Lines 1-8 using actual dollar amounts. Part II should be completed using dollar amounts, not the number of eligible employees. All lines in Part II should be completed with an actual dollar amount.
• Check the math. Taxpayers should make sure they check the math on lines 4, 7 and 8.
• Sign the form. Taxpayers should remember to sign the form. Failure to sign the form will result in an automatic rejection.

New Issue Snapshot

403(b) Plans - Catch-Up Contributions discusses catch-up contributions under a 403(b) plan, which is a retirement plan maintained by a 501(c)(3) organization, minister, or public educational institution.

Visit IRS.gov for a complete listing of available Issue Snapshots.

Recent IRS News Releases

• IRS accepting applications for 2021 grants for Low Income Taxpayer Clinics
• IRS retools Settlement Days program in response to COVID-19 pandemic; allows unrepresented taxpayers to settle their cases virtually and reach finality
• IRS: Three new credits are available to many businesses hit by COVID-19
• Treasury, IRS and Labor announce plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing Coronavirus-related leave
• FAQs: Higher Education Emergency Relief Fund and Emergency Financial Aid Grants under the CARES Act
• IRS provides tax relief through increased flexibility for taxpayers in section 125 cafeteria plans
• IRS People First Initiative provides relief to taxpayers
• IRS Nationwide Tax Forums go virtual in 2020
• Treasury, IRS issue final regulations providing relief for certain tax-exempt organizations

Visit IRS.gov for a complete listing of news releases for the current month.

IRS videos

• Overview of Form 1023 e-Filing
• Maintaining 501(c)(3) Tax-Exempt Status
• Political Campaigns and Charities: The Ban on Political Campaign Intervention

April 30, 2020

Form 1023 Paper Submission Transition Period Expires April 30

As of January 31, 2020, organizations are required to submit Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, electronically online at Pay.gov. The IRS provided a 90-day transition period during which time applicants can continue to submit paper Form 1023 applications. The transition period expires April 30, 2020. The IRS will not accept paper Form 1023 applications postmarked after that date.

The user fee for Form 1023 remains at $600 for 2020. Applicants must pay the user fee through Pay.gov when submitting the form. Payment can be made directly from a bank account or by credit/debit card.

Updated information on Signing Electronically Submitted Form 1023

An applicant may satisfy the electronic signature requirement for an electronically submitted Form 1023 by including, in the PDF file it uploads as part of its application, a copy of the handwritten signature of the officer, director, trustee, or other authorized official whose name is typed into Part X of the Form 1023 on Pay.gov.

To sign in this way, the signer should sign above their typewritten name on a copy of Part X of the completed application or on a separate sheet of paper that includes the same information as in Part X (name of signer, title or authority of signer, date, and penalties of perjury statement as set out in Part X).

Social media reminder during COVID-19 

For the latest information related to COVID-19, taxpayers can visit IRS.gov and follow IRS on various social media platforms, including:

• YouTube: The IRS has video channels that provide short, informative videos on various tax related topics in English, American Sign Language (ASL) and a variety of foreign languages.
• Twitter: IRS tweets include various tax-related announcements, news for tax professionals and hiring initiatives.
• Facebook: The IRS posts valuable tax information for tax professionals and those needing help to resolve issues with the IRS on Facebook. 
• LinkedIn: The IRS posts important tax information, updates and announcements from the IRS on LinkedIn.
• Instagram: The IRS shares taxpayer-friendly information to help filers prepare for the tax season and navigate tax law changes on Instagram. It also provides the latest tax scam information.

Visit the Charities and Nonprofits page on IRS.gov for information, news and educational resources about charities and other tax-exempt organizations.

IRS updates on COVID-19 related issues are posted on IRS.gov/coronavirus.

New Notices 

• Notice 2020-18PDF details special federal income tax return filing and payment relief in response to the ongoing COVID-19 emergency.
• Notice 2020-21PDF announces the effective date for employment tax credits under the Families First Coronavirus Response Act.
• Notice 2020-22PDF provides relief from the penalty for failure to deposit employment taxes.
• Notice 2020-23PDF amplifies the relief provided in Notice 2020-18 and Notice 2020-20, extending additional key tax deadlines for taxpayers.

IRS launches Taxpayer First Act webpage and email account

The Taxpayer First Act of 2019 requires the IRS to develop a comprehensive customer service strategy, modernize its technology and enhance its cyber security. Do you have feedback you'd like to share as we continue to implement the Taxpayer First Act? Send it to TFAO@irs.gov. Visit IRS.gov/taxpayer-first-act for more information.

Revised Form W-4 and new Income Tax Withholding Assistant 

The IRS revised Form W-4 and launched the Income Tax Withholding Assistant for Employers (obsolete), which is a spreadsheet designed to help employers transition to the new Form W-4. Watch our webinar on the 2020 Form W-4.

In connection with the redesigned Form W-4, the IRS updated the Tax Withholding Estimator. We encourage taxpayers to perform a Paycheck Checkup now to avoid tax filing surprises at the end of the year. Watch the video on the IRS Tax Withholding Estimator.

EO Issue Snapshots 

• Private Foundations – Self-Dealing IRC 4941(d)(1)(C)
• IRC Section 501(c)(4) Homeowners' Associations

Visit IRS.gov for a complete listing of available Issue Snapshots.

IRS seeks nominations for the Internal Revenue Service Advisory Council 

The IRS seeks applicants with experience in exempt organizations for the Internal Revenue Service Advisory Council (IRSAC). Applications will be accepted through June 12, 2020, for approximately 14 appointments that will begin in January 2021.

The IRSAC serves as an advisory body to the IRS Commissioner and provides an organized public forum for discussion of relevant tax administration issues between IRS officials and representatives of the public.

IRSAC members are appointed to three-year terms by the IRS Commissioner and submit a report to the Commissioner annually at a public meeting. Visit IRS.gov for more information.

Recent IRS News Releases

• REMINDER: Schedule and pay federal taxes electronically due by July 15
• IRS, Security Summit partners warn tax professionals on scams, urge additional security measures to protect taxpayer data
• COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs
• New Employer Tax Credits

Visit IRS.gov for a complete listing of news releases for the current month.

IRS videos

• Applying for Section 501(c)(3) Status
• Employer Provided Vehicles

April 14, 2020

IRS extends more tax deadlines, including Form 990-series returns and notices

Last month, the IRS announced that certain taxpayers generally have until July 15, 2020, to file and pay federal income taxes originally due on April 15. The IRS has extended this relief to additional returns, tax payments and other actions. As a result, the extensions generally now apply to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020. The extensions apply to many forms and tax payments made by tax-exempt organizations, including:

• Form 990-series annual information returns or notices (Forms 990, 990-EZ, 990-PF, 990-BL, 990-N (e-postcard))
• Forms 8871 and 8872
• Form 5227
• Form 990-T
• Form 1120-POL
• Form 4720
• Form 8976

See Notice 2020-23 and Rev. Proc. 2018-58 for more information, including a complete list of affected forms, tax payments and other time-sensitive actions.

IRS operations during COVID-19: mission-critical functions continue

In response to the coronavirus (COVID-19) crisis, the IRS is continuing with mission-critical activities for the nation but is limiting some operations. To protect the public and employees, and in compliance with orders of local health authorities around the country, certain IRS services such as live assistance on telephones, processing paper tax returns and responding to correspondence are extremely limited or suspended until further notice. As a result, the following services related to Tax Exempt and Government Entities are suspended until further notice:

• Telephone customer accounts services
• Some updates to Tax Exempt Organization Search

The IRS strongly urges taxpayers applying for recognition of exempt status under IRC Section 501(c)(3) to use the electronically-submitted Form 1023 or, if eligible, the Form 1023-EZ.

IRS.gov remains the best source for tax law questions. Continue to visit IRS.gov and our Charities and Nonprofits page for information, news, and educational resources about charities and other tax-exempt organizations. Refer to Revenue Procedure 2018-32 for more information for grantors and contributors to tax-exempt organizations on deductibility and reliance issues.

IRS updates on COVID-19 related issues are posted on IRS.gov/coronavirus.

The Families First Coronavirus Response Act (Families First Act) and The Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The Families First Act and the CARES Act provide considerable relief for exempt organizations, including grants, loans, tax credits, and other assistance.

Visit IRS.gov/coronavirus for the latest information about eligibility details and other requirements for the tax provisions under these Acts.

Acceptance of imaged and digital signatures and the electronic transmission of documents

As part of the response to the COVID-19 emergency, the IRS will temporarily allow employees to accept:

• Images of signatures (scanned or photographed) and digital signatures on documents related to the determination or collection of tax liability
• Documents via email and to transmit documents to taxpayers using SecureZip or other established secured messaging systems

This change expires July 15, 2020. Visit IRS.gov for detailsPDF.

Annual revenue procedures

• 2020-1
• 2020-2
• 2020-3
• 2020-5

Notable updates:

• Added Section 2.04, which announced the electronic Form 1023.
• Amended Section 6.08(2) to add that an organization applying for recognition of tax-exempt status after 27 months from formation under Section 501(c)(3) can't use Form 1023-EZ if it seeks an effective date earlier than the submission date, but instead must file a Form 1023.
• Amended Appendix A to reflect determination letter user fees as of July 1, 2020.
• 2020-0

Notable update:

• Modified Rev. Proc. 2020-5 to provide that Form 1023 must be submitted electronically online at Pay.gov. However, paper submissions of Form 1023 will be accepted if postmarked on or before April 30, 2020.

New mailing addresses for Form 941

The mailing addresses for paper Form 941 have changed. Avoid delays by checking pre-printed envelopes to ensure the address is correct. You can also file and pay electronically for faster processing.

EO Internal Revenue Manual revisions

IRS recently obsoleted 57 Exempt Organization Internal Revenue Manual (IRM) sections, which are being converting to Technical Resource Guides. Information from these IRM sections can still be found on IRS.gov using the "Search" feature.

Recent IRS News Releases

• IRS revises Form 1023 for applying for tax-exempt status
• IRS outlines new tax law effect on tax exempt organizations
• IRS recommends e-filing of payroll tax returns
• IRS unveils new People First Initiative; COVID-19 effort temporarily adjusts, suspends key compliance program
• Filing and Payment Deadlines Questions and Answers
• Longtime tax pro Erin Collins begins as new National Taxpayer Advocate; Collins takes on job early to help with COVID-19 response
• Employee Retention Credit available for many businesses financially impacted by COVID-19
• FAQs: Employee Retention Credit under the CARES Act
• COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs
• IRS issues warning about Coronavirus-related scams
• Follow IRS on social media, sign up for e-news subscriptions for urgent updates on COVID-19, scams and economic impact payment information
• IRS urges taxpayers to use electronic options; outlines online assistance

Visit IRS.gov for a complete listing of news releases for the current month.

IRS videos

• Overview of Form 1023 e-filing
• How to complete Form W-9

Helpful tax tips

Review these helpful tax tips.