Surprise Relief! New Applications No Longer Required for Form, Location Changes

• DOI: http://doi.org/10.1002/npc.30447
• Date: 01 April 2018
• Published date: 01 April 2018

Bruce R. Hopkins’ NONPROFIT COUNSEL

April 20182THE LAW OF TAX-EXEMPT ORGANIZATIONS MONTHLY

Bruce R. Hopkins’ Nonprofit Counsel DOI:10.1002/npc

13. Final regulations concerning IRS authority to disclose

exempt organization information to state officials

(IRC § 6104(c)); proposed regulations were published

in 2011 (summarized in the May 2011 issue).

14. Update to Rev. Proc. 92-94 (IRC § 4942, 4945).

15. Final regulations concerning the fractions rule (IRC §

514(c)(9)). Proposed regulations were issued Novem-

ber 22, 2016 (summarized in the February 2017 issue).

16. Guidance as to recontribution within 60 days of

refunded qualified higher education expenses (IRC §

529(c)(3)(D)).

17. Final regulations concerning the recordkeeping, sub-

stantiation, and appraisal requirements for cash and

noncash charitable contributions in reflection of

legislative enactments in 2004 and 2006; proposed

regulations were published in 2008.

18. Guidance regarding charitable contributions of

inventory (IRC § 170(e)(3)). ◆

SURPRISE RELIEF! NEW

APPLICATIONS NO LONGER

REQUIRED FOR FORM,

LOCATION CHANGES

The IRS announced, on February 26, that it generally

will no longer require a new application for recognition

of exemption from a domestic tax-exempt (IRC § 501(c))

organization that changes its form or place of organiza-

tion (Rev. Proc. 2018-15). This policy change is effective

for tax years beginning on or after January 1, 2018. The

venerable Rev. Rul. 67-390 has been obsoleted, along

with Rev. Rul. 77-469.

New Rules

For this new policy to apply, (1) the restructuring

organization must be recognized as exempt (IRC §

501(a)) and be in good standing in its state of incorpora-

tion or formation; (2) the restructuring organization and

the surviving organization (they may be the same entity)

must be domestic business entities that are classified as

corporations; (3) the surviving organization continues to

carry out the same purposes as the restructuring orga-

nization; and (4) in the case of charitable (IRC § 501(c)

(3)) organizations, the articles of incorporation must

continue to meet the organizational test, including the

requirement of a dissolution clause.

Exceptions

These new rules do not apply to a corporate restruc-

turing in which (1) the restructuring organization or the

surviving organization is a disregarded entity, limited

liability company, partnership, or foreign business entity;

or (2) the surviving organization obtains a new employer

identification number.

This change in policy also does not apply to a cor-

porate restructuring in which the surviving organiza-

tion seeks a determination that it is exempt under a

subsection of IRC § 501(c) that is different from its prior

determination.

BRUCE R HOPKINS' NONPROFIT COUNSEL

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