rp-18-10.pdf

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26 CFR 601.201: Rulings and determination letters.

Rev. Proc. 2018-10

SECTION 1. PURPOSE
This revenue procedure modifies Revenue Procedure 2018-5, 2018-1 I.R.B. 233, by
applying the procedures for Exempt Organizations determination letters to new Form
1024-A, Application for Recognition of Exemption Under Section 501(c)(4) of the
Internal Revenue Code.
SECTION 2. BACKGROUND
.01 Section 506, added to the Code on December 18, 2015, by the Protecting
Americans from Tax Hikes Act of 2015 (Pub. L. No. 114-113, div. Q) (the PATH Act),
requires a section 501(c)(4) organization, no later than 60 days after the organization is
established, to notify the Commissioner that it is operating as a section 501(c)(4)
organization. Section 506(f) provides that an organization may separately request a
determination of its tax-exempt status. In discussing section 506(f), the Joint
Committee on Taxation states that it is intended that such a request for a determination
be submitted on a new form (separate from Form 1024, Application for Recognition of
Exemption Under Section 501(a)) that clearly states that such a request is optional.

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See Staff of Joint Committee on Taxation, 114th Cong., 1st Sess., Technical
Explanation of the Protecting Americans from Tax Hikes Act of 2015, House
Amendment #2 to the Senate Amendment to H.R. 2029 (Rules Committee Print 114-
40), at 241 (Dec. 17, 2015). In response, the IRS created new Form 1024-A, available
at IRS.gov, for use by an organization choosing to apply for recognition of exempt
status under section 501(a) as an organization described in section 501(c)(4).
.02 Form 1024 will continue to be used by an organization seeking recognition of
exempt status under section 501(a) as an organization described in section 501(c)(2),
(5), (6), (7), (8), (9), (10), (12), (13), (15), (17), (19), or (25).
.03 Submitting Form 1024-A does not satisfy an organization’s requirement to notify
the Commissioner that it is operating under section 501(c)(4), as required by section
506. See IRS.gov for information on satisfying the notification requirement using Form
8976, Notice of Intent to Operate Under Section 501(c)(4).
SECTION 3. MODIFICATIONS TO REVENUE PROCEDURE 2018-5

.01 The first paragraph of section 4.02(3) of Rev. Proc. 2018-5 is modified to read as
follows:
(3) Form 1024 application. An organization seeking a determination letter from
the Service recognizing exemption under § 501(c)(2), (5), (6), (7), (8), (9), (10), (12),
(13), (15), (17), (19), or (25) must submit a completed Form 1024, Application for
Recognition of Exemption Under Section 501(a), along with Form 8718, User Fee for
Exempt Organization Determination Letter Request.
.02 Section 4.02 of Rev. Proc. 2018-5 is modified by adding new paragraph (7) to
read as follows:

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(7) Form 1024-A application. An organization seeking a determination letter
from the Service recognizing exemption under § 501(c)(4) must submit a completed
Form 1024-A, Application for Recognition of Exemption Under Section 501(c)(4) of the
Internal Revenue Code, along with Form 8718. In the case of an organization that
provides credit counseling services and seeks recognition of exemption under
§ 501(c)(4), see § 501(q).
Section 501(c)(4) organizations may choose to seek a determination letter
recognizing exemption under § 501(c)(4) by filing Form 1024-A, but are not required to
do so except in certain cases (see, for example, § 6033(j)(2) regarding failures to file
annual information returns or annual electronic notifications required under § 6033(a) or
(i)).
.03 Section 4.04(3) of Rev. Proc. 2018-5 is renumbered to paragraph 4.04(4) and is
modified to read as follows:
(4) Authorized representatives for all other requests. Except as provided in
section 4.04(1), (2), and (3), to sign the request, or to appear before the Service in
connection with the request, the representative must be listed in Appendix B.
.04 Section 4.04 of Rev. Proc. 2018-5 is modified by adding new paragraph (3) to
read as follows:
(3) Individual or representative authorized to sign Form 1024-A. In the case
of a request for a determination letter made by filing Form 1024-A, an officer, a director,
a trustee who is authorized to sign, or a representative authorized by a power of
attorney (see section 4.05 of this revenue procedure), must sign the application.
.05 Section 4.06(1) of Rev. Proc. 2018-5 is modified to read as follows:

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(1) Penalty of perjury statement requirements for requests for
determination letters made on Form 1023, 1023-EZ, 1024, 1024-A, or 8940. The
signature of an individual described in section 4.04(1), (2), or (3) of this revenue
procedure meets the penalty of perjury statement signature requirements for requests
on Form 1023, 1023-EZ, 1024, 1024-A, or 8940, as applicable.
.06 The third paragraph of section 4.06(2) of Rev. Proc. 2018-5 is modified to read
as follows:
This declaration must be signed and dated by the taxpayer, not the taxpayer’s
representative authorized by a power of attorney. The signature of an individual
described in section 4.04(1) is the signature of the taxpayer for purposes of the penalty
of perjury statement. The signature of an authorized representative described in section
4.04(2), (3), or (4) will not meet the penalty of perjury statement requirements (except
as otherwise provided in Appendix B). See the instructions to the relevant form for
additional detail. Neither a stamped signature nor a faxed signature is permitted.
.07 Section 15.01(1)(a) of Rev. Proc. 2018-5 is modified to read as follows:
(a) applications for recognition of tax exemption on Form 1023, Form 1024, Form
1024-A, and Form 1028;
SECTION 4. EFFECT ON OTHER DOCUMENTS
Rev. Proc. 2018-5 is modified.
SECTION 5. EFFECTIVE DATE
This revenue procedure is effective January 16, 2018.

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SECTION 6. DRAFTING INFORMATION
The principal author of this revenue procedure is Chelsea Rubin of the Office of
Associate Chief Counsel (Tax Exempt and Government Entities). For additional
information, please contact Ms. Rubin at 202-317-5800 (not a toll-free number).