New IRS Notification Process Announced For 501(C)(4) Nonprofits

Earlier this month, the US Internal Revenue Service (IRS) released its long-awaited temporary regulatory framework implementing the new statutory notification requirements placed on 501(c)(4) nonprofit organizations by the Protecting Americans from Tax Hikes (PATH) Act of 2015. This new legal framework, contained in Revenue Procedure 2016-41, will require nonprofit social welfare organizations to file a public notification form with the IRS within 60 days of formation that indicates their intention to operate under Section 501(c)(4) of the Internal Revenue Code. Failure to comply with this new obligation could place at risk the nonprofit status of social welfare entities, and likewise subject the organization, its officers and its directors to substantial financial penalties.