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PATH Act 501(c)(4) Matters Update: Notification Requirement Postponed, Temporary Regulations and Additional Guidance to Follow

Since enactment of the PATH Act on December 18, 2015, exempt organizations have been waiting for IRS guidance on the new Section 501(c)(4) notification requirement and procedures for organizations seeking IRS determination of Section 501(c)(4) status.  We’re still waiting for those specifics, but, with Notice 2016-09, the IRS has taken some of the time pressure off (both for itself and the affected organizations).

The Notice clarifies that the IRS and Department of Treasury intend to issue temporary regulations governing the notification process, though no time-frame is given, and provides that the notification is now due “at least 60 days” after such temporary regulations are issued.  The Notice also states that organizations wishing to seek IRS determination of their Section 501(c)(4) status should continue to file Form 1024 until further guidance is issued.

We will keep you posted.