Nonprofit Law Matters

Tag Archives: Section 506

IRS to Roll Out New Section 501(c)(4) Notice System on July 1?

Posted in AG, IRS, FTB, & Property Tax Proceedings, Formation & Tax Exempt Status, IRS, Nonprofit Structures, Relationships & Transactions, Tax Treatment of Lobbying & Political Activities

A while back, we blogged about a new notification requirement for organizations claiming exemption under Section 501(c)(4) imposed by Congress’s adoption last December of the PATH Act of 2015.  The Path Act created a new section of the Internal Revenue Code, Section 506, which requires new and certain existing (see below) Section 501(c)(4) organizations to… Continue Reading

New IRS Notification Requirement for Section 501(c)(4) Social Welfare Organizations

Posted in Formation & Tax Exempt Status, IRS, IRS, FTB & Attorney General Controversies, Unions, Associations, Clubs & Other Tax-Exempt Organizations

UPDATE: In Notice 2016-09, the IRS indicated that the notification requirement will not go into effect until “at least 60 days from the date” it issues regulations implementing Section 506, and no penalties will be assessed against any Section 501(c)(4) organization that submits the required notice by the due date provided in those regulations.  … Continue Reading