Overview
Today, the IRS issued Notice 2016-09, which extends the due date of notifications required to be submitted under new section 506 by social welfare organizations described in section 501(c)(4). Section 506 was created by the Protecting Americans from Tax Hikes Act of 2015 (PATH), enacted on December 18, 2015, as part of the Consolidated Appropriations Act, 2016 (Pub. L. 114-113). Section 506 requires a 501(c)(4) organization established after December 18, 2015 to notify the Secretary of the Treasury (in the manner prescribed by regulations) that it is operating as a section 501(c)(4) organization, no later than 60 days after the organization is established. In addition, for certain 501(c)(4) organizations existing on December 18, 2015, the notification is due no later than June 15, 2016, 180 days after the date of enactment of the PATH Act.
Today’s notice states that the IRS and Treasury Department intend to issue temporary regulations under section 506 prescribing the manner in which 501(c)(4) organizations must notify the IRS of their intent to operate under section 501(c)(4). The notice extends the due date for submissions under section 506 to at least 60 days from the date those temporary regulations are issued. The notice further states that 501(c)(4) organizations should wait to submit information until the regulations are issued.
The notice also provides that, until further guidance is issued, organizations requesting an IRS determination of exempt status under section 501(c)(4) should continue to use the Form 1024. The filing of Form 1024 is optional and will not relieve an organization of the requirement to file the section 506 notification.