Exempt Organizations Update

IRS TE/GE hiring event July 19, 2024, in St. Louis, MO; agency seeking revenue agents

The Tax Exempt & Government Entities division of the IRS is holding a hiring event July 19, 2024, from 10 a.m. to 3 p.m. in St. Louis. During this event, job seekers will be able to meet IRS TE/GE recruiters and hiring managers who will review resumes and conduct on-site interviews.

Applicants should schedule a preferred in-person interview time on Eventbrite.

Career opportunities at this event are for Revenue agents. Revenue agents are responsible for planning and conducting examinations of individuals and businesses to determine federal tax liability. These examinations are generally conducted at the taxpayer’s residence or place of business. Revenue agents work with taxpayers, their representatives, certified public accountants and tax attorneys.

This event will be held at America’s Center Convention Complex, 701 Convention Plaza, St. Louis, Missouri. Remember to bring your resume, two forms of identification, college transcripts and any documentation that supports your experience. You must be a U.S. citizen. 

IRS TE/GE hiring event July 17, 2024, in Nashville, TN; agency seeking revenue agents

The Tax Exempt & Government Entities division of the IRS is holding a hiring event July 17, 2024, from 10 a.m. to 3 p.m. in Nashville. During this event, job seekers will be able to meet IRS recruiters and hiring managers who will review resumes and conduct on-site interviews.

Applicants should schedule a preferred in-person interview time on Eventbrite.

Career opportunities at this event are for Revenue agents. Revenue agents are responsible for planning and conducting examinations of individuals and businesses to determine federal tax liability. These examinations are generally conducted at the taxpayer’s residence or place of business. Revenue agents also conduct examinations of exempt and governmental organizations and related business entities, make determinations on exempt status of organizations, review financial and operating data and provide technical assistance.

Revenue agents work with taxpayers, their representatives, certified public accountants and tax attorneys.

This event will be held at the Nashville Marriott at Vanderbilt University, 2555 West End Ave., Nashville, Tennessee. Remember to bring your resume, two forms of identification, college transcripts and any documentation that supports your experience. You must be a U.S. citizen.

IRS offers office hours for help with the pre-filing registration process for elective payment and transfer of clean energy and CHIPS credits

The IRS is offering office hours (through Microsoft Teams) to help entities with the pre-filing registration process on the new IRA/CHIPS Pre-filing Registration Tool. Pre-filing registration is a required step for applicable entities and eligible taxpayers to take advantage of elective payment or transfer of credits available in the Inflation Reduction Act and CHIPS Act. Representatives from the IRS will be available to answer your pre-filing registration questions. 

Registration for office hours is open. Registration is required and can be completed by clicking on the links below.

New TEOS improvements webpage

As part of an ongoing effort to improve service for the tax-exempt community, the TEOS Modernization Team is focused on improving usability based on stakeholder feedback. The team recently enhanced public access to Form 990 series data by providing a range of descriptive information (metadata) on the new TEOS improvements page. This new page features:

• A comprehensive list of TE/GE public disclosure datasets that offers an overview of the available datasets on IRS.gov.
• Dataset guides that outline the type of data available, usage, data format and update schedules to aid users in understanding and utilizing the data effectively.
• Data dictionaries and indices that identify column headers and data elements in each dataset that provide clarity on the content and structure of the data.
• Annotated forms that illustrate the relationships between form field names and datasets.
• Redacted schemas tailored for non-software developers that simplify the understanding of the raw XML data files.
• A compiled FAQ document that addresses common inquiries and concerns regarding disclosure, datasets, and related topics.

Resources on the new webpage aim to improve accessibility and facilitate the public’s use of Form 990 series data, in addition to enhancing transparency and understanding within the tax-exempt community.

Businesses and organizations can add more users for IRS Energy Credits Online

The IRS Energy Credits Online tool lets multiple people register as users on behalf of their entity. For continuity of access to the clean energy online tools, the IRS encourages each entity to have more than one clean energy officer.

Additional users are vital for continuity of access. If an entity has only one user and that person leaves, no one currently associated with the entity will have the authority to act on its behalf.

This tool was built to help taxpayers register their entity, submit time-of-sale reports, register a clean energy project for an elective payment, transfer a clean energy credit and claim a CHIPS credit. The tool helps key groups with clean energy credits and makes it easier to communicate and stay compliant with the rules of the credits.

Clean energy officer

The first person to register with IRS Energy Credits Online is automatically the entity’s clean energy officer. A clean energy officer can:

• Authorize additional users.
• Promote other users to clean energy officer. Multiple users can have this role for the same entity.
• Assign, manage and revoke permissions, including those of other clean energy officers.

Clean energy officers have access to all IRS Energy Credits Online functionality. They’re the only users who can manage authorized users and permissions.

Additional users

Once the first user creates an account for the entity, they can share the registration link with additional users who need access to IRS Energy Credits Online. The IRS recommends having at least two clean energy officers as a best practice to manage access to IRS Energy Credits Online.

User roles

The Clean energy officer should pay close attention to these roles assigned to other users in their organization.

• Dealers or sellers. Employees who need to submit time-of-sale reports or request advance payments.
• Manufacturers. Employees who submit periodic reports.
• Clean energy delegate. Employees of the entity who aren’t officers or other people authorized to have legal responsibility for the entity. A clean energy delegate can access the pre-filing registration tool to request registration numbers the entity needs to make an elective payment election.
• Clean energy third party user. Users outside the entity’s organization. This role lets the user request registration numbers the entity needs to make an elective payment election or transfer election on the tax return.

More information is available in Publication 5902, Clean Energy Authorization Permission Management PDF.

Domestic content bonus credit amounts under IRA: Expansion of applicable projects for safe harbor, and related provisions

Notice 2024-41 modifies the existing domestic content safe harbor in Notice 2023-38, provides a new elective safe harbor for determining the domestic content bonus credit amounts under Sections 45, 45Y, 48, and 48E of the Internal Revenue Code, and requests comments regarding the new elective safe harbor to inform the development of any future updates.

More information is available at IRS.gov/cleanenergy.

Form 990 series filing deadline – Today

Form 990 series filing deadline for calendar year organizations is due today.

Form 990, 990-EZ, Form 990-N, or 990-PF must be filed by the 15th day of the 5th month after the end of your organization's accounting period. For a calendar year taxpayer, Form 990, 990-EZ, Form 990-N, or 990-PF is due May 15 of the following year.

Tax-exempt organizations that need additional time to file beyond the May 15 deadline can request a 6-month automatic extension by filing Form 8868, Application for Extension of Time To File an Exempt Organization Return PDF. 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.

Updated technical guides

Exempt Organizations and Government Entities recently updated 22 technical guides (TG). Updates to these TGs include revised references to new TEGE IRMs, annual revenue procedures, and other content. The TGs can be found on the Audit Technique and Technical Guides webpage.

Guidance regarding the 2024 allocation round of qualifying advanced energy project credit program under section 48C(e)

Notice 2024-36 announces the 2024 allocation round of the section 48C qualifying advanced energy project credit to allocate approximately $6 billion of section 48C credits, with approximately $2.4 billion in section 48C credits to be allocated to projects located in section 48C(e) energy communities census tracts. Additionally, Notice 2024-36 updates and modifies Appendices A, B and C, as published in Notice 2023-18 and Notice 2023-44.

Appendix A provides definitions and examples of qualifying advanced energy projects. Appendix B provides the application process that the Department of Energy will use to evaluate concept papers and section 48C applications to decide whether to recommend a project for a section 48C allocation. Appendix C contains a list of census tracts that are section 48C(e) energy community census tracts.

Notice 2024-36 will be in IRB 2024-21, dated May 20, 2024.

Additional information about clean energy credits can be found at IRS.gov/cleanenergy.

Elective payment and determining tax year

Information relating to determining your tax year is available at Question 23 in the Elective pay and transferability frequently asked questions. Generally, to determine your tax year, check the instructions for the annual tax return you are filing.

Applicable entities that do not have a federal income tax filing or Form 990 filing obligation and have not previously established a taxable year by filing an annual information or income tax return (e.g., Form 990-T to report and pay tax on unrelated business taxable income) may choose to adopt a calendar year for purposes of elective pay, regardless of their fiscal year, provided they maintain adequate books and records. This applies to state and local governments, Indian tribal governments, and their agencies and instrumentalities, including school districts, that don’t file an income tax return and have not established a taxable year by filing an annual tax return.

For more information, see the Elective pay and transferability frequently asked questions.

Additional information about clean energy credits can be found at IRS.gov/cleanenergy.

In the April 23, 2024, edition of the EO Update, we briefly discussed automatic revocation, reinstatement of exempt status, and what to do if you believe an organization has been erroneously revoked. Today we will further discuss the procedures to follow in the case of an erroneous revocation.

Proof of filing

Under Internal Revenue Code Section 6033(j), the tax-exempt status of an organization that does not file a required return or notice for three consecutive years will be automatically revoked as of the due date of the third unfiled return.

An organization possessing documentation (an IRS receipt for a filed return, for example) that shows it has not failed to file for three consecutive years should contact Customer Account Services, or send the documentation directly to the Exempt Organizations Account Unit:

By mail:

Internal Revenue Service 1973 North Rulon White Blvd. M/S 6552 Ogden, UT 84404

By fax: 855-247-6123

Note: The fax number above is dedicated for use to resolve the erroneous revocation issue described. Do not submit correspondence on other topics to this fax number.

If the organization submits documentation that it met its Form 990-series filing requirement for one or more of the years during the three-year period, the IRS will remove your name from the Auto-Revocation List.

Ruling or determination letter stating no annual filing requirement

An organization with a ruling or determination letter from the IRS stating that it does not have an annual filing requirement should send a copy of the ruling or determination letter, along with a written request to be removed from the Auto-revocation List, to:

By mail: Internal Revenue Service - TEGE P.O. Box 2508 Cincinnati, OH 45201

By fax: 855-204-6184 (not a toll-free number)

If the organization submits a ruling or determination letter from the IRS stating that it did not have a Form 990-series filing requirement, and if the organization's filing requirement has not changed since the date of that ruling or determination letter, the IRS will remove its name from the Auto-revocation List.

Formation date

The filing requirements for a tax-exempt organization generally start with the tax year in which it was legally formed. When an organization applies for an EIN, the IRS considers it legally formed and a filing requirement is established. If the organization doesn't satisfy that filing requirement for three consecutive years after the formation date, its exemption will be automatically revoked. If an organization on the Auto-Revocation List was not legally formed in the same tax year it requested its EIN, or if the organization believes it was erroneously revoked because the IRS used the EIN application date for purposes of automatic revocation, it should send a statement indicating its legal formation date directly to the Exempt Organizations Entity Unit.

By mail: Internal Revenue Service 1973 North Rulon White Blvd. M/S 6273 Ogden, UT 84404

By fax: 855-214-7520

The statement of legal formation date must be signed over the following statement: “Under penalties of perjury, to the best of my knowledge, the information in this form is correct and complete.” If the organization submits the signed statement that it did not legally form until after one or more of the years during the three-year period, the IRS will remove your name from the Auto-Revocation List.

See FAQs for further details on erroneous auto revocation.

IRS offers office hours for help with the pre-filing registration process for elective payment and transfer of clean energy and CHIPS credits

The IRS is offering office hours (through Microsoft Teams) to help entities with the pre-filing registration process on the new IRA/CHIPS pre-filing registration tool. Pre-filing registration is a required step for applicable entities and eligible taxpayers to take advantage of elective payment or transfer of credits available in the Inflation Reduction Act and CHIPS Act. Representatives from the IRS will be available to answer your pre-filing registration questions.

Registration for office hours is open. Registration is required and can be completed by clicking on the links below.

Automatic revocation of exempt status for non-filing

Form 990, 990-EZ, Form 990-N, or 990-PF must be filed by the 15th day of the 5th month after the end of your organization's accounting period. For a calendar year taxpayer, Form 990, 990-EZ, Form 990-N, or 990-PF is due May 15 of the following year. For 2024, the deadline is Wednesday, May 15th.

Under Internal Revenue Code Section 6033(j), the tax-exempt status of an organization that does not file a required return or notice for three consecutive years will be automatically revoked as of the due date of the third unfiled return.

If an organization does not file an annual return or notice for three consecutive years, the organization is automatically revoked by operation of law, and not by a determination made by the IRS. The law provides no appeals process for automatic revocations.

Effect of automatic revocation

An organization that has lost its tax-exempt status through automatic revocation may be required to file one of the following federal income tax returns and pay any applicable income taxes:

• Form 1120, U.S. Corporation Income Tax Return PDF, due by the 15th day of the 3rd month after the end of an organization’s tax year, or
• Form 1041, U.S. Income Tax Return for Estates and Trusts PDF, due by the 15th day of the 4th month after the end of an organization’s tax year.

In addition, a section 501(c)(3) organization that loses its tax-exempt status cannot receive tax-deductible contributions and will not be identified in the IRS Business Master File extract as eligible to receive tax-deductible contributions, or be included in tax exempt organization search.

Action needed for reinstatement

To have its tax-exempt status reinstated, the organization must file an application for exemption. An organization may also request retroactive reinstatement as part of its application.

Erroneous revocation

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. An organization can fax us the relevant information (an IRS receipt for a filed return, for example) to 855-247‑6123 to resolve the issue.

Additional resources

• FAQs on auto revocation
• Automatic revocation of exemption
• Pub 4991 Automatic Revocation of Tax-Exempt Status PDF

Register for free gaming webinar

Is your organization considering gaming as a form of fundraising? Do you have questions about what’s involved in gaming or how it might affect your organization? If so, the Tax Exempt and Government Entities Division invites you to register for the free Impacts of Gaming on Tax-Exempt Organizations webinar on Thursday, April 18, 2024, at 2 p.m. (Eastern time).

This webinar will describe and discuss:

• Impacts gaming can have on tax-exempt status
• Importance of good internal controls and recordkeeping
• Form 990 filing requirements
• Unrelated business income tax situations
• Filing requirements for payments to individuals
• Wagering and excise taxes and when they are applicable
• Plus, a live Q & A

Mark your calendar and join us this Thursday, April 18, 2024, at 2 p.m. (Eastern time). There’s still time to register.

Registration open for the 2024 IRS Nationwide Tax Forum

Registration is open for the in-person 2024 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 up to 18 continuing education credits. Take advantage of the early bird rate (available until June 17). For more information visit IRS Nationwide Tax Forum

When is the Form 990 series filing deadline?

The Form 990 series filing deadline this year is Wednesday, May 15, 2024.

Form 990, 990-EZ, Form 990-N, or 990-PF must be filed by the 15th day of the 5th month after the end of your organization's accounting period. For a calendar year taxpayer, Form 990, 990-EZ, Form 990-N, or 990-PF is due May 15 of the following year.

Which Form 990-series return should be filed?

Most tax-exempt organizations are required to file an annual return. Which form an organization must file generally depends on its financial activity, as indicated in the chart below.

Tax-exempt organizations that need additional time to file beyond the May 15 deadline can request a 6-month automatic extension by filing Form 8868, Application for Extension of Time To File an Exempt Organization Return PDF. 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.

Are there consequences for filing late?

An organization that does not meet its Form 990 or Form 990-EZ filing requirement may have to pay a penalty for each day the return is late. The amount of the penalty depends on the size of the organization. See Form 990 Instructions PDF or Form 990-EZ Instructions PDF, “Failure-To-File Penalties” for additional information.

What happens if an organization doesn’t file?

Under Internal Revenue Code Section 6033(j), the tax-exempt status of an organization that does not file a required return or notice for three consecutive years will be automatically revoked as of the due date of the third unfiled return. Revoked organizations must file Form 1120, U.S. Corporation Income Tax Return, or a Form 1041, U.S. Income Tax Return for Estates and Trusts, and may need to pay income taxes.

Where can an organization find help filing Form 990?

Our interactive online Form 990 Overview provides information on:

• which forms to file,
• when they are due,
• public disclosure of your return, and
• offers other tips on preparing your annual filing.

Officers, board members, and volunteers are encouraged to review all of the courses available in the stayexempt.irs.gov Virtual Small to Mid-Sized Tax-Exempt workshop.

Where can an organization find additional resources?

For more details see:

• Annual filing and forms for tax-exempt organizations
• FAQs about the annual reporting requirements for tax-exempt organizations
• Form 990 resources and tools
• Publication 557 PDF

Register for free Impacts of Gaming on Tax-Exempt Organizations webinar

The Tax Exempt and Government Entities Division invites you to register for the free Impacts of Gaming on Tax-Exempt Organizations webinar on Thursday, April 18, 2024, at 2 p.m. (Eastern time).

This webinar will describe and discuss:

• Impacts gaming can have on tax-exempt status
• Importance of good internal controls and recordkeeping
• Form 990 filing requirements
• Unrelated business income tax situations
• Filing requirements for payments to individuals
• Wagering and excise taxes and when they are applicable
• Plus, a live Q & A

Certificates of completion are being offered. Tax Professionals: earn up to 1 CE credit; Category: Federal Tax.

Please visit webinars for tax practitioners for further details.

Online gaming resources

If you are looking for gaming resources prior to the webinar, we encourage you to review the following online resources:

• Charitable gaming for exempt organizations - This online course discusses gaming rules, documentation, and possible tax implications.
• Unrelated business income - This online course discusses how to determine if your tax-exempt organization has taxable income and how to report it.
• Publication 3079, Tax-Exempt Organizations and Gaming PDF
• Publication 598 Tax on Unrelated Business Income of Exempt Organizations

IRS offers office hours for help with the pre-filing registration process for elective payment and transfer of clean energy and CHIPS credits

The IRS is offering office hours (through Microsoft Teams) to help entities with the pre-filing registration process on the new IRA/CHIPS Pre-filing Registration Tool. Pre-filing registration is a required step for applicable entities and eligible taxpayers to take advantage of elective payment or transfer of credits available in the Inflation Reduction Act and CHIPS Act. Representatives from the IRS will be available to answer your pre-filing registration questions.

Registration for office hours is open. Registration is required and can be completed by clicking on the links below.

Treasury and IRS finalize rules on elective payments of certain clean energy credits

The Department of the Treasury and Internal Revenue Service issued final regulations for applicable entities that earn certain clean energy credits and choose to make an elective payment election.

The IRS also updated the elective payment frequently asked questions based on the final regulations.

The full news release about the finalized rules on elective payments is available on IRS.gov.

When do I receive my payment if I use elective pay?

In general, payments occur after the tax return is processed (assuming requirements are met). Under the statute, the taxpayer is not entitled to the elective payment until the due date of the return, even if the taxpayer files the return before that date.

In general, entities that file by the due date of their return and appropriately elect elective pay can anticipate payment issuance within 45 days of the due date of their annual return. In some cases, this may take less or more time. Additional information can be found in the Elective pay and transferability frequently asked questions.

How to register multiple users for IRS Energy Credits Online

IRS Energy Credits Online, the online tool for users to register for elective pay elections and transfer elections, allows for multiple users to be registered on behalf of an organization. The first user to register on behalf of an entity will be assigned as a "clean energy officer" for the entity. This user will have access to all IRS Energy Credits Online functionality for the entity.

The clean energy officer must authorize access to new users who wish to register on behalf of the organization. The Clean Energy Officer will also assign user roles and permissions. Entities may have more than one Clean Energy Officer. For more information see Publication 5902, Clean Energy Authorization Permission Management PDF.

Additional information about clean energy credits can be found at IRS.gov/cleanenergy.

TE/GE technical advisor job opportunity

The IRS Tax Exempt and Government Entities Division has announced a GS-15 tax law specialist position as a technical advisor to the director of the Exempt Organizations and Government Entities Division (EO/GE).

In this position, you’ll:

• Advise the director of EO/GE on issues pertaining to the interpretation and application of laws involving organizations exempt from income tax, including procedural and administrative provisions related to such organizations
• Analyze developments resulting from litigation, legislative action, regulations and departmental policy then initiate changes where necessary
• Review proposed legislation, regulations and revenue rulings impacting exempt organizations
• Serve as liaison between the EO/GE Division and various parties, including the IRS Office of Chief Counsel.

To learn more about this position and how to apply, go to USAjobs.gov or do a keyword search for 24-12351435A-TEX-0987-15.

To learn more about careers at the IRS, including pay, benefits and alternate work schedules, visit jobs.irs.gov

Apply today! This position is only open until March 20, 2024.

MeF stylesheet corrections

The IRS inadvertently posted Modernized e-File (MeF) stylesheets on IRS.gov for tax year (TY) 2021 Form 990, Return of Organization Exempt from Income Tax, and certain associated schedules that were labeled as the MeF stylesheets for TY 2022. The IRS has now corrected this and the 2022 MeF stylesheets for the Form 990 and associated schedules are posted correctly on irs.gov. This did not impact the accuracy of images of Forms 990 that appear on Tax Exempt Organization Search (TEOS) on IRS.gov.

The IRS is aware that some external stakeholders populate MeF Stylesheets (essentially images of blank returns) with the publicly available machine-readable XML return data available on TEOS to display images of publicly available Forms 990 on their websites. External stakeholders that use MeF stylesheets to render XML data into return images may now use the posted stylesheets to generate accurate images of TY 2022 Forms 990.

Registration open for the 2024 IRS Nationwide Tax Forum

Registration is open for the in-person 2024 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 up to 18 continuing education credits. Take advantage of the early bird rate (available until June 17). For more information visit IRS Nationwide Tax Forum.

IRS offers additional office hours for help with the pre-filing registration process for elective payment and transfer of clean energy and CHIPS credits

The IRS is excited to offer additional office hours (through Microsoft Teams) to help entities with the pre-filing registration process on the new IRA/CHIPS Pre-filing Registration Tool. Pre-filing registration is a required step for applicable entities and eligible taxpayers to take advantage of elective payment or transfer of credits available in the Inflation Reduction Act and CHIPS Act. Representatives from the IRS will be available to answer your pre-filing registration questions.

Registration for office hours is now open. Registration is required and can be completed by clicking on the links below.

New technical guide published

Exempt Organizations and Government Entities has published a new technical guide. these guides are comprehensive, issue-specific documents that update and combine the audit technique guides (ATG) with other technical content. Once completed, the Technical Guides replace corresponding ATGs.

The latest Exempt organizations technical guide TG 8: Fraternal Beneficiary Societies and Domestic Fraternal Societies - IRC Section 501(c)(8) and IRC Section 501(c)(10) PDF discusses the law, regulations and federal income tax issues with respect to fraternal beneficiary societies described under Internal Revenue Code (IRC) Section 501(c)(8) and domestic fraternal societies under IRC Section 501(c)(10).

Extension of time to file for those in federally declared disaster areas

May 15 is the due date for filing Form 990-series returns for calendar-year tax-exempt organizations, however some may have more time to file. Exempt organizations in federally declared disaster areas have until June 17, 2024, to file. For details, see the disaster relief page on IRS.gov.

How to maintain your organization’s tax-exempt status

Leaders 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.

Day five of employer deadlines and filing requirements series

Today we wrap up our week-long series on employer deadlines and filing requirements by taking a look at Form 944, Employer’s Annual Federal Tax Return.

Form 944 vs. Form 941

Every employer who pays compensation for services performed by employees must report to the IRS the wages paid. Additionally, employers must report related employment taxes including income tax withholding, social security tax, Medicare tax and, if applicable, Additional Medicare Tax. Generally, employers must report wages, tips and other compensation paid to an employee by filing Form 941, Employer’s Quarterly Federal Tax Return. But small employers (those with annual employment tax liabilities of $1,000 or less) may instead be eligible to file Form 944, Employer's Annual Federal Tax Return, if approved by the IRS.

Eligibility to file Form 944

If your employment taxes for the calendar year will be $1,000 or less, you could be eligible to file Form 944. Form 944 is designed so the smallest employers (those whose annual liability for social security, Medicare, and withheld federal income taxes is $1,000 or less) will file and pay these taxes only once a year instead of every quarter.

When applying for your Employer Identification Number (EIN), you will receive a notice listing the employment tax forms you are required to file. Form 944 cannot be filed unless you receive written notification that you are eligible to do so. If you are unsure of your current filing requirement, call 800-829-4933 (toll free) or 267-941-1000 (toll call).

In general, if the IRS has notified you to file Form 944, you must file Form 944 instead of quarterly Forms 941 to report certain amounts, including:

• Wages you have paid
• Tips your employees reported to you
• Federal income tax you withheld
• Both (employer and employee) shares of social security and Medicare taxes

Once your annual employment tax liability exceeds $1,000, the IRS will notify you that you're no longer eligible to file Form 944 in future years and that you must file Form 941 quarterly. However, until you receive the notice, continue to file Form 944 annually.

If you haven't received notification to file Form 944 for 2024 but estimate your employment tax liability for calendar year 2024 will be $1,000 or less and would like to file Form 944 instead of Forms 941, you can contact the IRS to request to file Form 944 for 2024. To file Form 944 for calendar year 2024, you must call the IRS at 800-829-4933 (267-941-1000 (toll call) if you're outside the United States) between January 1, 2024, and April 1, 2024, or send a written request to the correct mailing address postmarked between January 1, 2024, and March 15, 2024. The IRS will send you a written notice that your filing requirement has been changed to Form 944. If you don't receive this notice, you must file quarterly Forms 941 for calendar year 2024.

Form 944 is due by Jan. 31

For 2023, file Form 944 by Jan. 31, 2024. However, if you made timely deposits in full payment of your taxes due for the year, you may file the return by Feb. 12, 2024.

For further information, see instructions for Form 944 (2023).

Series summary

Today concludes our week-long series. The main goal of this series was to provide general guidelines on reporting, filing and deposit requirements of an employer. For more in-depth information please visit:

• IRS.gov/employmenttaxes
• Employment tax publications
• StayExempt employment issues

IRS offers office hours for help with the pre-filing registration process for elective payment and transfer of clean energy and CHIPS credits

The IRS is offering office hours (through Microsoft Teams) to help entities with the pre-filing registration process on the new IRA/CHIPS pre-filing registration tool. Pre-filing registration is a required step for applicable entities and eligible taxpayers to take advantage of elective payment or transfer of credits available in the Inflation Reduction Act and CHIPS Act. Representatives from the IRS will be available to answer your pre-filing registration questions.

Registration for office hours is open. Registration is required and can be completed by clicking on the links below.

Day four of employer deadlines and filing requirement series

Today is day four of our week-long series on important employer deadlines and filing requirements. Today we take a look at federal tax deposits.

Federal tax deposits

Federal law requires you, as an employer, to withhold, or take out of your employees’ pay, certain amounts for federal income tax, social security tax, and Medicare tax. Under the withholding system, taxes withheld from your employees are credited to your employees in payment of their tax liabilities. Federal law also requires you to pay the employer’s share of social security tax and Medicare tax; it is not withheld from employees.

All employment taxes must be deposited timely and by the required method. You are required to make timely deposits of:

• Federal income tax withheld
• Additional Medicare tax withheld (if applicable)
• Both the employer and employee social security
• Medicare taxes
• Federal Unemployment Tax Act (FUTA) (if applicable)

There are two deposit schedules, monthly and semi-weekly. Before the beginning of each calendar year, you must determine which of the two deposit schedules you are required to use. To determine your payment schedule, review Publication 15 for Forms 941, 944 and 945. For Form 943, review Publication 51. Deposits for FUTA Tax (Form 940) are required for the quarter within which the tax due exceeds $500. The tax must be deposited by the end of the month following the end of the quarter.

You must use electronic funds transfer (EFTPS) to make all federal tax deposits. See the employment tax due dates page for information on when deposits are due. If you fail to make a timely deposit, then you may be subject to a failure-to-deposit penalty of up to 15 percent. Depositing the taxes alone does not report the taxes or relieve you of the requirement to file a return. Generally, employers must report wages, tips and other compensation paid to an employee by filing the required form(s) to the IRS. You must also report taxes you deposit by filing Forms 941, 943, 944, 945, and 940 on paper or through e-file.

Day three of employer deadlines and filing requirement series

In yesterday’s EO Update we reviewed Form W-2, Wage and Tax Statement, and Form 1099-NEC, Nonemployee Compensation, to determine which form should be filed by an employer to report payments made to workers. In today’s EO Update we will discuss electronic filing requirements for Form W-2 and Form 1099-NEC and also take a closer look at the IRS Information Returns Intake System (IRIS).

Electronic filing requirements

The Department of the Treasury and the Internal Revenue Service issued final regulations amending the rules for filing returns and other documents electronically. These regulations affect filers of many types of returns including information returns Form W-2 and Form 1099-NEC.

For information returns required to be filed on or after Jan.1, 2024, the final regulations:

• reduce the 250-return threshold from prior regulations to generally require electronic filing by filers of 10 or more returns in a calendar year.
• require filers to aggregate almost all information return types covered by the regulation to determine whether a filer meets the 10-return threshold and is required to e-file their information returns.

Starting tax year 2023, if you have 10 or more information returns, you must file them electronically. To determine if returns must be filed electronically, an employer must add together the number of information returns and the number of Forms W-2 required to be filed in a calendar year. If the total is at least 10 returns, they must all be filed electronically. The new threshold is effective for information returns required to be filed in calendar years beginning with 2024. The new rules apply to tax year 2023 Forms W-2 because they are required to be filed by Jan. 31, 2024.

Information Returns Intake System (IRIS)

The Information Returns Intake System (IRIS) taxpayer portal is a system that provides a no cost online method for taxpayers to electronically file Form 1099-series information returns. This free electronic filing service is secure, accurate and requires no special software. IRIS may be especially helpful to any organization that currently sends paper Forms 1099 to the IRS. With IRIS business taxpayers can:

• Enter information into the portal or upload a file with a downloadable template in IRIS.
• Download completed copies of Form 1099-series information returns.
• Submit extensions.
• Make corrections to information returns filed with IRIS.
• Get alerts for input errors and missing information.
• Get a confirmation in a little as 48 hours that the IRS received the return.
• Reduce expenses on paper, postage, storage space and trips to the post office

IRIS allows you to enter data to create Forms 1099 by either keying in the information or uploading a .csv file. For more information see Publication 5717, IRS Portal User Guide PDF. Alternatively, taxpayers may continue to use the Filing Information Returns Electronically (FIRE) system to file information returns.

If you file Forms 1099-NEC on paper you must submit them with Form 1096, Annual Summary and Transmittal of U.S. Information Returns. If you file more than one type of information return on paper -- for example, 1099-NEC, 1099-MISC, 1099-K, etc. -- you must prepare a separate Form 1096 for each type of information return. Form 1096 is not required for filing electronically.

All employers are encouraged to file electronically. E-filing not only saves you time but is also secure and accurate.

For more information on electronic filing, see:

• About Form W-2, Wage and Tax Statement
• Publication 1220, Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G PDF

For specifications for electronic filing of Forms W-2 with the Social Security Administration, visit Business Services Online (BSO) or call 800-772-6270 (TTY 800-325-0778).

Day two of employer deadlines and filing requirements series

Today is day two of our week-long series on important deadlines and filing requirements for employers. Today we take a look at the relationship between employers and the person performing services for the employer. We will also look at what information returns an employer should file to report payments made to workers.

Employee versus independent contractor

Before you can determine how to treat payments you make for services, you must first know the business relationship that exists between you and the person performing the services.

In determining whether the person providing services is an employee or an independent contractor, all information that provides evidence of the degree of control and independence must be considered.

Facts that provide evidence of the degree of control and independence fall into three categories:

1. Behavioral: Does the payer control or have the right to control what the worker does and how the worker does his or her job?
2. Financial: Are the business aspects of the worker’s job controlled by the payer? (These include things like how the worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
3. Type of relationship: Are there written contracts or employee-type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?

There is no “magic” or set number of factors that “makes” the worker an employee or an independent contractor and no one factor stands alone in making this determination.

The keys are to look at the entire relationship and consider the extent of the right to direct and control the worker. Finally, document each of the factors used in coming up with the determination.

If you want the IRS to determine if a specific individual is an independent contractor or an employee, file Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding.

For more information on employees and independent contractors refer to:

• Hiring employees
• Publication 15-A, Employer's Supplemental Tax Guide
• Publication 1779, Independent Contractor or Employee PDF
• Independent contractor (self-employed) or employee?

Once a determination is made (whether by the business or by the IRS), the next step is filing the appropriate forms and paying the associated taxes.

Form W-2

If a worker has been determined to be an employee, the employer must:

• Complete Form W-2, Wage and Tax Statement.
• Submit Copy A of Form W-2 by mail or electronically to the Social Security Administration (SSA), with the transmittal Form W-3, Transmittal of Wage and Tax Statements, by Jan. 31, 2024. If the employer e-files Form(s) W-2 with the SSA, no Form W-3 is required. Their W-2 online service will create an electronic Form W-3 for you.
• Furnish Copies B, C, and 2 of Form W-2 to the employee showing the wages paid and taxes withheld by Jan. 31, 2024.

Important reminder - employers filing 10 or more information returns, including Forms W-2, must file electronically unless granted a waiver by the IRS.

For more information see:

• Forms and associated taxes for employees
• About Form W-2
• Filing Forms W-2 and W-3
• General instructions for Forms W-2 and W-3
• Who must file information returns electronically

Form 1099-NEC

If the following four conditions are met, you must generally report a payment as non-employee compensation:

• You made the payment to someone who is not your employee.
• You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations).
• You made the payment to an individual, estate, or, in some cases, a corporation.
• You made payments to the payee of at least $600 during the year.

If you paid someone who is not your employee, such as a subcontractor, attorney or accountant, $600 or more for services provided during 2023, you must complete a Form 1099-NEC. You must provide a copy of Form 1099-NEC to the independent contractor by Jan. 31, 2024, and you must also send a copy of this form to the IRS by Jan. 31, 2024.

As a reminder, starting in tax year 2023, if you file 10 or more information returns, you must file them electronically. Business taxpayers can electronically file any Form 1099 series information returns for free with the IRS Information Returns Intake System (IRIS). IRIS accepts Form 1099 series returns for tax year 2022 and after. IRIS is available to any business of any size. It's secure and accurate and it requires no special software. It also reduces the need for paper forms.

For more information, see:

• Forms and associated taxes for independent contractors
• Instructions for Forms 1099-MISC and 1099-NEC PDF
• Who must file information returns electronically

Week-long series on employer deadlines and filing requirements

This week the EO Update will feature a series focusing on important deadlines and filing requirements for employers. Topics this week will include:

• Jan. 31, 2024, deadlines
• Employee or independent contractor/Form W-2 or Form 1099-NEC
• E-file and Information Return Intake System (IRIS)
• Federal tax deposits
• Form 944, Employers Annual Tax Return

Information returns filing deadlines

Jan. 31, 2024, is the deadline for submitting wage statements and forms for independent contractors with the government.

Employers must file their copies of Form W-2, Wage and Tax Statement, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration by Jan. 31, 2024.

Employers must furnish Copies B, C, and 2 of Form W-2 to employees by Jan. 31, 2024, as well.

The Jan. 31, 2024, deadline also applies to Forms 1099-MISC, Miscellaneous Information, and Forms 1099-NEC, Nonemployee Compensation, that are filed with the IRS to report non-employee compensation to independent contractors. Various other due dates related to Form 1099-MISC, Form 1099-K and Form 1099-NEC, including dates due to the IRS, can be found on the forms’ instructions.

The IRS offers a free electronic filing service for the Form 1099 series using IRIS. Filers can also use this online portal to prepare payee copies for distribution, file corrections and request automatic extensions.

Important reminders:

• Employers may request a 30-day extension to file Forms W-2 by submitting Form 8809, Application for Extension of Time to File Information Returns, by Jan.31, 2024. Extensions to file are not automatically granted.
• Filing Form 8809 does not extend the due date for furnishing wage statements to employees. A separate extension must be filed by Jan. 31, 2024. See extension of time to furnish Forms W-2 to employees for more information.
• Penalties may be assessed for failure to file correctly and on time. For more information visit the IRS’ information return penalties
• Form 1099-K $600 reporting threshold delayed. This means that for 2023 and prior years, payment apps and online marketplaces are only required to send out Forms 1099-K to taxpayers who receive over $20,000 and have over 200 transactions. For tax year 2024, the IRS plans for a threshold of $5,000 to phase in reporting requirements.

For more information see IR-2024-06, About Form W-2, Wage and Tax Statement and Publication 1220, Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G PDF.

E-file unavailable for Form 990-T and Form 1120-POL until March 17, 2024. An extension can be filed for both forms and paper file with Form 1120-POL

The Internal Revenue Service announced in news release 2024-15, taxpayers won’t be able to electronically file Form 990-T, Exempt Organization Business Income Tax Return, or Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations, until March 17, 2024. IRS system upgrades mean e-filing of Forms 990-T and Forms 1120-POL (including returns on extension) with due dates from Jan. 15, 2024, to March 15, 2024, is currently unavailable.

Taxpayers with due dates on April 15, 2024, and later will be able to e-file Forms 990-T and Forms 1120-POL on time.

Returns due from Jan. 15, 2024, to March 15, 2024:

Form 990-T, Exempt Organization Business Income Tax Return

Organizations subject to unrelated business income tax (UBIT) are required by law to file Form 990-T electronically. An organization with a Form 990-T due from Jan.15 to March 15, 2024, should request an automatic six-month extension of time to file by submitting Form 8868, Application for Extension of Time To File an Exempt Organization Return, by the due date of the return. The IRS estimates only about 2,000 of the 200,000 Form 990-T filers have a due date in this time period and are affected by this.

Any balance due must be submitted with Form 8868 to avoid interest and penalties. Beginning March 17, 2024, organizations will be able to timely e-file Form 990-T by the extended due date.

If an affected organization doesn’t timely submit an extension, or if the extended due date falls within the period from Jan. 15, 2024, to March 15, 2024, and the organization consequently doesn’t timely e-file its Form 990-T, it should include with its late e-filed Form 990-T a request that any penalties for late filing not be imposed due to reasonable cause. The reasonable cause request should reference that e-filing was not available as of the due date of the return.

Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations

Organizations filing a Form 1120-POL that is due from Jan. 15, 2024, to March 15, 2024, (including returns on extension) may file on paper. An organization that wishes to e-file a return with an original due date during that period may request an automatic six-month extension of time to file Form 1120-POL by submitting Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, and paying the full balance due with that form to avoid interest and penalties. Only a handful of these organizations typically file electronically in the affected time period.

Filing only to make an elective payment election for Clean Energy Credits

The electronic filing delay won’t affect the ability of government entities and Indian tribal governments -- that aren’t subject to UBIT -- to timely file Form 990-T to make an elective payment election (EPE) PDF for clean energy tax credits. EPE is available for tax years beginning in 2023, therefore the returns won’t be due until after March 17.

In addition, under the law, an entity can’t receive the elective payment amount before the original due date of the return. Filing before the original due date for the return will not shorten the time for payment. While government entities and Indian tribal governments that aren’t subject to UBIT aren’t subject to the electronic filing mandate, the IRS encourages all taxpayers to e-file. See the elective pay and transferability FAQs on irs.gov for more information on EPE for Clean Energy Credits.

IRS offers office hours for help with the pre-filing registration process for elective payment and transfer of clean energy and CHIPS credits

The IRS is excited to offer office hours (through Microsoft Teams) to help entities with the pre-filing registration process on the new IRA/CHIPS pre-filing registration tool. Pre-filing registration is a required step for applicable entities and eligible taxpayers to take advantage of elective payment or transfer of credits available in the Inflation Reduction Act and CHIPS Act. Representatives from the IRS will be available to answer your pre-filing registration questions.

Registration for office hours is now open. Registration is required and can be completed by clicking on the links below.

Revenue Procedure 2024-5, released on January 2, 2024, provides that EO Determinations will now issue a determination letter to an organization currently recognized as described in Section 501(c)(3) that seeks recognition as described in a different paragraph of Section 501(c).

Section 3.01(1) of Rev. Proc. 2024-5 provides that EO Determinations will issue a determination letter to an organization currently recognized as described in Section 501(c)(3) that seeks recognition as described in a different paragraph of Section 501(c) if the organization establishes that as of the submission date of its application, it:

1. Has distributed its assets to another Section 501(c)(3) organization or government entity, and
2. Otherwise meets the requirements for the Section 501(c) status requested.

It further provides that the new determination letter will only be effective from the submission date of the new application.

Accordingly, an organization currently recognized as described in Section 501(c)(3) that seeks recognition as described in a different paragraph of Section 501(c) must:

1. Represent that its assets have been distributed as of the submission date of its application and provide a description of the assets distributed, the date of distribution and the name, EIN, and address of the recipient, and
2. Agree to submission (postmark) date for recognition under the new paragraph of Section 501(c).

The required representation may be included with the organization’s supplemental responses in the single PDF file submitted with its Form 1024, Application for Recognition of Exemption Under Section 501(a) or Section 521 of the Internal Revenue Code, or Form 1024-A, Application for Recognition of Exemption Under Section 501(c)(4) of the Internal Revenue Code.

This procedure also applies to an organization automatically revoked under Section 6033(j) that was described in Section 501(c)(3) that seeks retroactive reinstatement as described in a different paragraph of Section 501(c).

Section 501(c)(3) organizations seeking to be recognized as described in Section 501(c)(4) are subject to the same requirement to file Form 8976 within 60 days of formation as new Section 501(c)(4) organizations.

An organization previously described in Section 501(c)(3) that submits Form 8976 within 60 days of seeking to be described in Section 501(c)(4) may have reasonable cause for not filing Form 8976 within 60 days of formation. Such an organization may seek reasonable cause relief from any penalty for late filing Form 8976 by following the instructions in the correspondence from the IRS regarding the penalty.

IRS IRA/CHIPS pre-filing registration tool now open

Qualifying tax-exempt organizations and entities such as state, local and tribal governments can now register using the new IRS IRA/CHIPS pre-filing registration tool. Registration allows entities to take advantage of the options for elective payment or transfer of certain tax credits.

Tax-exempt and governmental entities can benefit from clean energy tax credits using new options enabled by the Inflation Reduction Act of 2022 (IRA). The IRA allows qualifying tax-exempt organizations and governments to benefit from certain clean energy tax credits through elective pay. For tax years beginning after December 31, 2022, an applicable entity that qualifies for a clean energy tax credit can make an elective payment election. This election will treat certain credits as a payment against federal income tax liabilities rather than as a nonrefundable credit. The amount of the credit will first offset any tax liability of the entity and any excess will be refundable.

Qualifying entities that make an elective payment or credit transfer election must earn the credit, which means they must make a tax credit investment or undertake tax credit production activities to earn a qualifying credit.

Qualifying entities must complete the pre-file registration process and receive a registration number. The registration number must be included on the taxpayer’s annual return as part of making a valid elective pay election. To facilitate this, the IRS created the IRA/CHIPS pre-filing registration tool.

Complete and submit the pre-filing registration request no earlier than the beginning of the tax year in which the taxpayer will earn the credit it wishes to monetize with an elective payment election or transfer election.

Refer to Publication 5884, Inflation Reduction Act (IRA) and CHIPS Act of 2022 (CHIPS) Pre-Filing Registration Tool User Guide PDF to assist in the pre-filing registration process. This guide has information on the clean energy credits and detailed instructions on the pre-filing registration process. Functionality allowing additional authorized users and expansion of the entity type drop down menu will be available soon.

The full news release about the IRA/CHIPS Pre-Filing Registration tool is available on IRS.gov.

Additional information about clean energy credits can be found at IRS.gov/cleanenergy.

IRS updates process for requesting copies of exempt organization documents

Looking for information about an exempt organization? Use the Tax Exempt Organization Search (TEOS) tool on IRS.gov. TEOS is the primary source for publicly available data on electronically filed Forms 990 provided by the IRS, and it also allows the public to view determination letters issued since January 1, 2014. Taxpayers can request other information related to tax-exempt organizations using either Form 4506-A or 4506-B. The IRS has updated the process to request copies of these documents, including a revised Form 4506-B PDF. The revised form ensures consistency and improves timeliness for processing these requests. Please see below for specific details on the processes that are now in place to request copies of documents for exempt organizations.

TEOS - View exempt organization returns and recent determination letters on IRS.gov

Forms 990, 990-EZ, 990-PF, 990-T (for IRC Section 501(c)(3) organizations), and 990-N received in 2017 or later can be viewed individually and as bulk data downloads on TEOS. Determination letters issued in 2014 or later are also available on TEOS.

Form 4506-A - Request a copy of a return that’s not available on IRS.gov

Complete Form 4506-A PDF, Request for Copy of Exempt or Political Organization IRS Form, to request copies of Form 990, 990-EZ, 990-PF, 990-T (for IRC Section 501(c)(3) organizations), or 5227. Form 4506-A can be submitted by mail or fax; email submissions are not accepted.

Form 4506-B - Request a copy of an organization’s exemption application or determination letter from the IRS

Use TEOS to view determination letters issued in 2014 or later online.

To request a copy of a determination letter issued before 2014, submit Form 4506-B PDF, Request for a Copy of Exempt Organization IRS Application or Letter, using the email feature on the form. No faxed or mailed submissions will be accepted.

You may use Form 4506-B to request a copy of an organization’s application for recognition of tax-exempt status (Forms 1023, 1023-EZ, 1024, 1024-A, etc.) or an affirmation letter affirming the current exempt status of the organization.

Submitting Form 4506-B

The IRS will only process a request for copies submitted on the current Form 4506-B (updated August 2023). Requests must include a complete Form 4506-B and the correct Employer Identification Number (EIN) and must be used for an exempt organization.

If a request is not accepted, you will receive a letter explaining why and describing the correct method for resubmitting a request, where applicable.

As part of ongoing efforts to improve service for the tax-exempt community, the TEOS Modernization project team is focused on improving usability based on stakeholder feedback. These enhancements involve providing essential descriptive information such as a dataset guide, data dictionary, indices, annotated tax forms, schemas, FAQs, and regular updates, all aimed at enhancing public usability.

Check the TEOS improvements webpage for more information.

International Charity Fraud Awareness Week November 27 – December 1, 2023

Please join the IRS and other international organizations and regulators by participating in the annual International Charity Fraud Awareness Week (ICFAW), November 27 – December 1, 2023. 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.

Clean energy credits: What you need to know about elective pay

Tax-exempt and governmental entities can benefit from clean energy tax credits using new options enabled by the Inflation Reduction Act of 2022 (IRA). The IRA allows certain exempt organizations to benefit from certain clean energy tax credits through elective pay. For tax years beginning after December 31, 2022, an applicable entity that qualifies for a clean energy tax credit can make an elective payment election. This election will treat certain credits as a payment against their federal income tax liabilities rather than as a nonrefundable credit. The amount of the credit will first offset any tax liability of the entity and any excess will be refundable.

How do I make an elective pay election?

The elective payment election is made on your annual tax return in the manner prescribed by the IRS, along with any form required to claim the relevant tax credit (source credit forms), a completed Form 3800, General Business Credit (or its successor), and any additional information, including supporting calculations, required in instructions to the relevant forms. Making an elective payment election requires completing multiple steps, including completing the required pre-filing registration process.

The term annual tax return includes:

1. for any person normally required to file an annual tax return with the IRS, such annual return (including Form 990-T for organizations with unrelated business income tax or a proxy tax under section 6033(e)); or
2. for any person that is not normally required to file an annual tax return with the IRS (such as taxpayers located in the territories), the return they would be required to file if they were not located in the territories, or, if no such return is required (such as for State, local, or Indian tribal governmental entities), the Form 990-T Exempt Organization Business Income Tax Return.

Electronic return filing is strongly encouraged.

Each entity making an elective payment election must have a unique EIN. More information about applying for an EIN is available at IRS.gov/ein.

How do I determine the taxable year?

Check the instructions for the annual tax return you are filing. For example, for tax-exempt entities filing Form 990-T, the return must be filed using the organization's established annual accounting period. If the organization has no established accounting period, file the return on the calendar-year basis.

How do I timely file my return?

An elective payment election may only be made on an original, timely filed return (including extensions). This means the deadline is the due date (including extensions of time) for the tax return for the taxable year for which the election is made. For most tax exempt and government entities including Indian tribal governments this is generally 4.5 months (for example, May 15 for a calendar year taxpayer) (or up to 10.5 months with extensions) after the end of the entity's tax year.

An original return includes a superseding return filed on or before the due date (including extensions). No election is permitted to be made on an amended return or by filing an administrative adjustment request under section 6227 of the Code. There is no relief available under §§ 301.9100-1 through 301.9100-3 of the Procedure and Administration Regulations (26 CFR part 301) for an elective payment election that is not timely filed.

Additional information about Clean Energy Credits can be found at IRS.gov/cleanenergy.

Clean energy credits: What you need to know about claiming and receiving credits

Tax-exempt and governmental entities can benefit from clean energy tax credits using new options enabled by the Inflation Reduction Act of 2022 (IRA). The IRA allows certain exempt organizations to benefit from certain clean energy tax credits through elective pay. For tax years beginning after December 31, 2022, an applicable entity that qualifies for a clean energy tax credit can make an elective payment election. This election will treat certain credits as a payment against their federal income tax liabilities rather than as a nonrefundable credit. The amount of the credit will first offset any tax liability of the entity and any excess will be refundable.

Available clean energy credits

For information on which clean energy tax credits are available, Publication 5817-D PDF has a list of elective pay eligible tax credits.

Pre-filing registration information

A pre-filing registration process must be completed, and a registration number received, prior to making an elective payment election on an annual tax return. Applicable entities will need their own Employer Identification Number (EIN) or Tax Identification Number (TIN) to complete the pre-filing registration process. Applicable entities cannot use or borrow the EIN of a related entity. Find additional information on applying for an EIN at IRS.gov/ein.

The online pre-filing registration process is expected to launch in late 2023. After the launch, you may complete pre-filing registration as soon as you have all the information required. More detail will be available as the launch approaches.

To complete pre-filing registration, you must provide certain information about yourself, the applicable credits you intend to earn, each eligible project or property that will contribute to the applicable credit, and certain additional information. The IRS will review the information provided and will issue a separate registration number for each applicable credit property for which the applicable entity or electing taxpayer provided sufficient verifiable information. Registration is not complete until a registration number is received.

How to make an elective payment election for a clean energy tax credit:

1. Identify and pursue the qualifying project or activity: You will need to know which credit you intend to earn.
2. Determine your tax year, if not already known: Your tax year will determine the due date for your tax return.
3. Complete pre-filing registration with the IRS.
4. Satisfy all eligibility requirements for the tax credit and any applicable bonus credits, if applicable, for a given tax year: For example, to claim an energy credit on a solar energy generating project, you would need to place the project in service before making an elective payment election. You will need the documentation necessary to properly substantiate any underlying tax credit, including if bonus amounts increased the credit.
5. File the required annual tax return by the due date (or extended due date) and make a valid elective payment election. This includes properly completed and attached source credit forms, Form 3800 (including registration numbers) and required return attachments.

Additional information about clean energy credits can be found at IRS.gov/cleanenergy.

Elective payments of certain credits under the Inflation Reduction Act

Tax-exempt and governmental entities, including those that were generally unable to use tax credits previously, can now benefit from clean energy tax credits using new options enabled by the Inflation Reduction Act of 2022. Elective pay makes certain clean energy tax credits effectively refundable. With elective pay, for tax years beginning after December 31, 2022, an applicable entity that qualifies for an applicable clean energy tax credit can choose to make an elective payment election, which will treat certain credits as a payment against their federal income tax liabilities rather than as a nonrefundable credit. This payment will first offset any tax liability of the entity and any excess will be refundable.

Applicable entities generally include tax-exempt organizations, state and local governments, Indian tribal governments, Alaska Native Corporations, the Tennessee Valley Authority and rural electric cooperatives.

The Internal Revenue Service has issued proposed regulations describing rules and definitions concerning elective payments for the clean energy tax credits. The IRS has also issued temporary regulations regarding the pre-filing registration requirements for taxpayers planning to make an elective payment election.

The pre-filing registration process must be completed, and a registration number received, prior to making an elective payment election or an election to transfer eligible credits. Applicable entities will need their own Employer Identification Number (EIN) or Tax Identification Number (TIN) to complete the pre-filing registration process. Applicable entities cannot use or borrow the EIN of a related entity. The IRS is continuing to work to implement the elective payment process and will provide more information, including about the pre-filing registration process, in late 2023.

For more information on elective pay, the IRS has posted Frequently Asked Questions that provide an overview and discuss eligibility, applicable credits, steps for making an election, and other rules. Additionally, the IRS has posted numerous concise publications with key information about elective pay specifically for various types of applicable entities that may make an elective payment election:

• Elective Pay Overview, Publication 5817 PDF
• Rural Electric Cooperatives, Publication 5817-A PDF
• U.S. Territorial Governments, Publication 5817-B PDF
• Alaska Native Corporations, Publication 5817-C PDF
• Tax-Exempt Organizations, Publication 5817-D PDF
• State and Local Government, Publication 5817-E PDF
• Indian Tribal Governments, Publication 5817-F PDF
• Clean Energy Tax Incentives: Elective Pay Eligible Tax Credits, Publication 5817-G PDF

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 Audit Technique Guides (ATG) with other technical content. Once completed, the TGs replace corresponding ATGs.

The two latest TGs are:

• TG 3-1 Overview, Applications, Exemption Requirements - IRC 501(c)(3) PDF
• TG 13 Cemetery Companies - IRC 501(c)(13) PDF

TG 3-1 provides an overview of Section 501(c)(3) application, exemption, and filing requirements, as well as other considerations such as foundation status and employment tax requirements.

TG 13 discusses tax exemption of nonprofit cemetery and crematoria organizations described under Section 501(c)(13).

Payers may receive Notices CP 2100 and CP 2100A

When businesses and other payers file information returns (e.g., Form W-2G, Form 1099-NEC, etc.) with data that doesn’t match IRS records, the IRS sends them a CP2100 or CP2100A notice. The notices tell payers that the information returns they submitted have a missing or incorrect Taxpayer Identification Number, name, or both.

The IRS sends CP2100 and CP2100A notices twice a year, in October and the following April. Each notice has a list of payees with the issues the IRS found.

See tax tip 2023-75 and CP2100 or CP2100A notice for further details.

E-file Form 8300: Reporting of Large Cash Transactions

Federal law requires persons to report cash transactions of more than $10,000 by filing Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. Tax-exempt organizations are also "persons" and may need to report certain transactions. A tax-exempt organization doesn't have to report a charitable cash contribution, but it may need to report certain other cash payments. For example, an exempt organization that receives more than $10,000 in cash for renting part of its building must report the transaction.

Effective Jan. 1, 2024, businesses must electronically file (e-file) Forms 8300 if they are required to e-file certain other information returns electronically, such as Forms 1099 series and Forms W-2. They must e-file Forms 8300 in a given calendar year if they are required to file at least 10 information returns of one or more types, other than Form 8300, beginning with the calendar year 2024. The number of Forms 8300 filed does not affect the information return threshold requirement.

See fact sheet 2023-19 for further details.

We’re hiring! IRS announces entry-level Internal Revenue Agent positions

Build a career with purpose. The IRS announced openings across the country for GS-05 through GS-12 Internal Revenue Agent positions for candidates with the required accounting education.

The IRS offers competitive pay, generous health care and retirement plans, alternative work schedules, work/life balance and numerous other benefits. Learn more about these positions and apply today at irs.usajobs.gov. Please share this message with others who may be interested in these positions.

Employee Retention Credit

The Employee Retention Credit (ERC), sometimes called the Employee Retention Tax Credit, or ERTC, is a refundable tax credit for businesses and tax-exempt entities that had employees and were affected by the COVID-19 pandemic. The ERC is a complex credit that requires careful review before applying. The requirements are different depending on the time period for which you claim the credit.

The IRS has alerted businesses and tax-exempt organizations of warning signs for misleading scams involving the ERC. The IRS recently released ERC FAQs that provide general information about eligibility, claiming the credit, recordkeeping and more.

See IRS YouTube video (also available in Spanish) for further details.

Elective payments of certain credits under the Inflation Reduction Act

Tax-exempt and governmental entities, including those that were generally unable to use tax credits previously, can now benefit from clean energy tax credits using new options enabled by the Inflation Reduction Act of 2022. Elective pay makes certain clean energy tax credits effectively refundable. With elective pay, for tax years beginning after December 31, 2022, an applicable entity that qualifies for an applicable clean energy tax credit can choose to make an elective payment election, which will treat certain credits as a payment against their federal income tax liabilities rather than as a nonrefundable credit. This payment will first offset any tax liability of the entity and any excess will be refundable.

Applicable entities generally include tax-exempt organizations, state and local governments, Indian tribal governments, Alaska Native Corporations, the Tennessee Valley Authority and rural electric cooperatives.

The Internal Revenue Service has issued proposed regulations describing rules and definitions concerning elective payments for the clean energy tax credits. The IRS has also issued temporary regulations regarding the pre-filing registration requirements for taxpayers planning to make an elective payment election.

The pre-filing registration process must be completed, and a registration number received, prior to making an elective payment election or an election to transfer eligible credits. Applicable entities will need their own Employer Identification Number (EIN) or Tax Identification Number (TIN) to complete the pre-filing registration process. Applicable entities cannot use or borrow the EIN of a related entity. The IRS is continuing to work to implement the elective payment process and will provide more information, including about the pre-filing registration process, in late 2023.

For more information on elective pay, the IRS has posted Frequently Asked Questions that provide an overview and discuss eligibility, applicable credits, steps for making an election, and other rules. Additionally, the IRS has posted numerous concise publications with key information about elective pay specifically for various types of applicable entities that may make an elective payment election:

• Elective Pay Overview, Publication 5817 PDF
• Rural Electric Cooperatives, Publication 5817-A PDF
• U.S. Territorial Governments, Publication 5817-B PDF
• Alaska Native Corporations, Publication 5817-C PDF
• Tax-Exempt Organizations, Publication 5817-D PDF
• State and Local Government, Publication 5817-E PDF
• Indian Tribal Governments, Publication 5817-F PDF
• Clean Energy Tax Incentives: Elective Pay Eligible Tax Credits, Publication 5817-G PDF

We’re hiring! IRS announces entry-level Internal Revenue Agent positions

Build a career with purpose. The IRS announced openings across the country for GS-05 through GS-12 Internal Revenue Agent positions for candidates with the required accounting education.

The IRS offers competitive pay, generous health care and retirement plans, alternative work schedules, work/life balance and numerous other benefits. Learn more about these positions and apply today at IRS.usajobs.gov. Please share this message with others who may be interested in these positions.

Update to submitting Form 990-N (e-Postcard)

The IRS now offers two sign-in options to submit a Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990-EZ. Both Login.gov and ID.me provide additional security for tax-exempt organizations by adding multi-factor authentication to the sign-in process. When establishing either a Login.gov or ID.me account, previous 990-N filings can be accessed using the same email address associated with your legacy IRS username.

Four new technical guides published

Exempt Organizations and Government Entities has published four 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 3-10: Disqualifying and Non-Exempt Activities - Trade or Business Activities - IRC Section 501(c)(3) PDF
• TG 5: Labor, Agricultural, and Horticultural Organizations - IRC Section 501(c)(5) PDF
• TG 44: Qualified Tuition Program - IRC Section 529 PDF
• TG 65: Excise Taxes - Excess Benefit Transactions - IRC Section 4958 PDF

Deadline approaches for those in some federally declared disaster areas

July 31st is the filing deadline for exempt organizations affected by four different disaster declarations for incidents occurring during late March and early April of this year. Exempt organizations in those areas have until July 31st to file quarterly payroll tax returns normally due May 1st and Form 990 series returns normally due May 15th. The current list of eligible localities is available on the disaster relief page on IRS.gov.

See IRS news release 2023-128 for further details.

Charitable gaming online resources

Did you know the IRS offers many online resources for tax-exempt organizations involved with charitable gaming? For example, the StayExempt.irs.gov charitable gaming for exempt organizations course discusses gaming rules, documentation and possible tax implications. Other online resources include:

• Exclusion of Bingo from unrelated business activity
• Exempt organization gaming and unrelated business taxable income
• About Form 5754, Statement by Person(s) Receiving Gambling Winnings
• About Form W-2 G, Certain Gambling Winnings
• "Bingo" defined
• Publication 3079, Tax-Exempt Organizations and Gaming PDF
• About Publication 598, Tax on Unrelated Business Income of Exempt Organizations

We're hiring! IRS announces entry-level Internal Revenue Agent positions

Build a career with purpose. The IRS announced openings across the country for GS-05 through GS-12 Internal Revenue Agent positions for candidates with the required accounting education.

The IRS offers competitive pay, generous health care and retirement plans, alternative work schedules, work/life balance and numerous other benefits. Learn more about these positions and apply today at IRS.usajobs.gov. Please share this message with others who may be interested in these positions.

Filing deadline: Don’t risk losing your exemption

Monday, May 15, 2023, is the deadline for calendar-year exempt organizations to file certain returns. For tips on which forms to file and how to prepare your annual filings, please view the Form 990 Overview Course.

As a reminder, under Internal Revenue Code Section 6033(j), organizations that fail to file their Form 990-series return or notice for three consecutive years automatically lose their exemption.

For more information see IR-2023-90 April 20, 2023

Extension of time to file

Tax-exempt organizations that need additional time to file beyond the May 15 deadline can request a 6-month automatic extension by filing Form 8868, Application for Extension of Time To File an Exempt Organization Return PDF. 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.

Nominations for 2024 Internal Revenue Service Advisory Council

The IRS is accepting applications for the Internal Revenue Service Advisory Council (IRSAC) through May 31, 2023. Members are appointed to three-year terms beginning in January 2024.

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.

We’re hiring! IRS announces entry-level Internal Revenue Agent positions

Build a career with purpose. The IRS announced openings across the country for GS 5-12 Internal Revenue Agent positions for candidates with the required accounting education.

We offer competitive pay, generous health care and retirement plans, alternative work schedules, work/life balance and numerous other benefits. You can learn more about these positions and apply today at irs.usajobs.gov. Please share this message with others who may be interested in these positions.

Electronic filing regulations for tax-exempt & government entities

Recently, the Department of the Treasury published final regulations, “Electronic-filing requirements for specified returns and other documents,” implementing the reduced electronic threshold under Section 2301 of the Taxpayer First Act of 2019 (TFA). Under the regulations found in T.D. 9972 PDF, taxpayers who are required to file at least 10 returns of any type during the calendar year must file electronically. Generally, the regulation applies after 2023. See the regulations for detailed dates of applicability to specific returns.

Among others, the regulations apply to the following forms:

Exempt organizations

• 5227, Split-Interest Trust Information Return
• 4720, Return of Certain Excise Taxes on Charities and Other Persons Under Chapters 41 and 42 of the IRC (if filed by other than a private foundation)
• 1120-POL, U.S. Income Tax Return for Certain Political Organizations

Employee plans

• 8955-SSA, Annual Registration Statement Identifying Separated Participants with Deferred Vested Benefits
• 5500-EZ, Annual Return of A One-Participant (Owners/Partners and Their Spouses) Retirement Plan or A Foreign Plan
• 5330, Return of Excise Taxes Related to Employee Benefit Plans

Government entities

• 8596, Information Return for Federal Contracts
• 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds

Under Internal Revenue Code section 6011(e)(2)(B), the regulations take into account the ability of the taxpayer to e-file at reasonable cost. On a year-by-year and form-by-form basis, the IRS may waive the requirement to file electronically in cases of undue hardship. In certain circumstances, a filer may be administratively exempt from the requirement to file electronically. The instructions to each form will set forth details on the waiver. In general, the filer should maintain documentation supporting the undue hardship or other applicable reason for not filing electronically.

Additionally, section 3101 of the TFA sets forth “mandatory e-filing by exempt organizations,” which is already in effect. This applies to the following forms:

• 4720 (if filed by a private foundation)
• 990, Return of Organization Exempt from Income Tax
• 990-EZ, Short Form Return of Organization Exempt from Income Tax
• 990-PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as Private Foundation
• 990-T, Exempt Organization Business Income Tax Return

Reminder to tax-exempt organizations: May 15 filing deadline

The Internal Revenue Service reminds tax-exempt organizations that many have a filing deadline of May 15, 2023. Those that operate on a calendar-year 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

Extension of time to file

Tax-exempt organizations that need additional time to file beyond the May 15 deadline can request a 6-month automatic extension by filing Form 8868, Application for Extension of Time To File an Exempt Organization Return PDF. 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.

We’re hiring--IRS announces entry-level Internal Revenue Agent positions

Build a career with purpose. The IRS announced openings across the country for GS 5-12 Internal Revenue Agent positions for candidates with the required accounting training. Competitive salary, health care, retirement, work/life balance and numerous other benefits. Apply today at irs.usajobs.gov. Please share this message with others who may be interested in these positions.

IRS revises Form 8940, Request for Miscellaneous Determination, to allow electronic filing

As part of ongoing efforts to improve service for the tax-exempt community, the Internal Revenue Service issued the revised Form 8940, Request for Miscellaneous Determination, and its instructions to allow electronic filing.

Beginning April 3, 2023, IRS will make available the electronic version of the Form 8940 that exempt organizations use to make miscellaneous determination requests online at pay.gov. The IRS will provide a 90-day grace period during which it will continue to accept paper versions of Form 8940 (Rev. 6-2011); however, after this grace period the Form 8940 must be submitted electronically.

In addition to the miscellaneous requests that were previously made using Form 8940, the following miscellaneous requests are now also made on Form 8940:

• Government entities requesting voluntary termination of exempt status under section 501(c)(3) (previously a letter request)
• Canadian registered charities requesting inclusion in Tax Exempt Organization Search database (TEOS) of organizations eligible to receive tax-deductible charitable contributions (Pub. 78 data) or a determination on public charity classification (previously a letter request)
• Private foundations giving notice only of intent to terminate private foundation status under section 507(b)(1)(B) (previously provided on Form 8940 or by general correspondence)

See news release IR-2023-70 for additional details.

Tips on filing Form 990

Most exempt organizations described in section 501(c) are required to submit an annual Form 990-series return. The Form 990 overview course shows you which forms to file, when they are due, public disclosure of your return and offers other tips on preparing your annual filing. Exempt organization officers and board members should review all of the courses available in the StayExempt.irs.gov virtual small to mid-sized tax-exempt workshop.

Find us on social media

The IRS uses social media to share exempt organization information. This includes tax changes, scam alerts, initiatives, tax products and services, and more.

IRS social media resources include:

• Twitter
  • @IRSnews - tax announcements
  • @IRSenEspanol - information in Spanish
  • @IRStaxpros - for tax professionals
  • @IRStaxsecurity - scam alerts
  • @IRSsmallbiz - small businesses and self-employed
  • @RecruitmentIRS - job opportunities.
• Instagram: Access "IRSNews" or at the Instagram app.
• YouTube: Video tips in English, Spanish and American Sign Language.
• Facebook: News and information for taxpayers and tax return preparers, also available in Spanish.
• LinkedIn: IRS updates and job opportunities

Subscribe to the platform that best fits your needs to supplement your GovDelivery subscription.

Two new technical guides published

Exempt organizations and government entities have 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) PDFPDF
• TG 3-3 Exempt Purpose, Charitable IRC 501(c)(3) PDFPDF

Extension of time to file for those in federally declared disaster areas

May 15th 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.

Technical guide 58 revised

Exempt organizations and government entities Technical Guide (TG) 58, Excise Taxes on Self-Dealing under IRC 4941 PDF, was revised to incorporate the recently released Chief Counsel Advisory (CCA) 202243008 PDF. 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.

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 Leagues PDF 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.

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 5248 PDF, 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.

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

  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.

• Form 945, Annual Return of Withheld Federal Income Tax

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

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 Return PDF. 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) Form PDF, 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

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 Guide PDF
• TG 58 Excise Taxes on Self-Dealing under IRC 4941, Publication 5616, Exempt Organizations Technical Guide PDF
• TG 62 Excise Taxes on Taxable Expenditures under IRC 4945, Publication 5590, Exempt Organizations Technical Guide PDF

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 507 PDF. 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.

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.

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.

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 507 PDF
• TG 57 Taxes on Net Investment Income IRC 4940 PDF
• TG 59 Taxes on Foundation Failure to Distribute Income IRC 4942 PDF
• TG 60 Taxes on Excess Business Holdings IRC 4943 PDF
• TG 64 Foreign Organizations PDF
• TG 61 Taxes on Investments which Jeopardize Charitable Purposes IRC 4944 PDF

LLCs applying for tax-exempt status under section 501(c)(3) must submit information described in Notice 2021-56

Notice 2021-56 PDF 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 1023 PDF.

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 Letter PDF. 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 Form PDF. 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-A PDF (Rev. 11-2021) and instructions for Form 4506-B PDF (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

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.

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 letter PDF 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.

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 p.m. (Eastern time). 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.

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 contact PDF 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 508 PDF and TG 63 Disqualified Persons as Defined in IRC 4946 PDF, 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. (Eastern time). 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 2021-40 PDF, 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.

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).

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.

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 2 p.m. ET. 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.

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. 315 PDF.

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 p.m. 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.

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.

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.

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.

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. (Eastern time).

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.

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. ET.

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.

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

Thursday January 14, 2021

• 11 a.m. Eastern time - Meeting ID: 160 684 3808
• 4 p.m. Eastern time - 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.

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