81 FR 45008 - Requirement To Notify the IRS of Intent To Operate as a Section 501(c)(4) Organization; Final and Temporary Regulations
DEPARTMENT OF THE TREASURY
Internal Revenue Service Federal Register Volume 81, Issue 133 (July 12, 2016)
Internal Revenue Service
Federal Register Volume 81, Issue 133 (July 12, 2016)
| Page Range | 45008-45012 | |
| FR Document | 2016-16338 |
[Federal Register Volume 81, Number 133 (Tuesday, July 12, 2016)] [Rules and Regulations] [Pages 45008-45012] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-16338] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Parts 1 and 602 [TD 9775] RIN 1545-BN26 Requirement To Notify the IRS of Intent To Operate as a Section 501(c)(4) Organization; Final and Temporary Regulations AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Final and temporary regulations. ----------------------------------------------------------------------- SUMMARY: This document contains final and temporary regulations relating to the requirement, added by the Protecting Americans from Tax Hikes Act of 2015, that organizations must notify the IRS of their intent to operate under section 501(c)(4) of the Internal Revenue Code (Code). The regulations affect organizations described in section 501(c)(4) (section 501(c)(4) organizations) that are organized after December 18, 2015, and certain section 501(c)(4) organizations existing on that date. The text of the temporary regulations serves as the text of the proposed regulations set forth in the related notice of proposed rulemaking (REG-101689-16) published in the Proposed Rules section in this issue of the Federal Register. DATES: Effective Date: These regulations are effective on July 8, 2016. Applicability Date: For date of applicability, see Sec. 1.506- 1T(f). FOR FURTHER INFORMATION CONTACT: Chelsea Rubin at (202) 317-5800 (not a toll-free number). SUPPLEMENTARY INFORMATION: Paperwork Reduction Act The collection of information contained in these final and temporary regulations will be reviewed and, pending receipt and evaluation of public comments, approved by the Office of Management and Budget under control number 1545-2268. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid control number. For further information concerning this collection of information, please refer to the preamble to the cross-referencing notice of proposed rulemaking published in the Proposed Rules section of this issue of the Federal Register. Books and records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103. Background This Treasury decision contains temporary regulations under section 506 of the Code. Section 405 of the Protecting Americans from Tax Hikes Act of 2015 (Pub. L. 114-113, div. Q) (the PATH Act), enacted on December 18, 2015, added section 506 to the Code and amended sections 6033 and 6652. Because the statutory provisions were effective upon enactment and certain section 501(c)(4) organizations must notify the IRS within 60 days of formation, these temporary regulations are necessary to provide prompt guidance to enable section 501(c)(4) organizations to satisfy the new statutory notification requirement and provide appropriate transition relief. 1. Section 501(c)(4) Organizations Section 501(a) of the Code generally provides that an organization described in section 501(c) is exempt from federal income tax. Section 501(c)(4) describes certain civic leagues or organizations operated exclusively for the promotion of social welfare and certain local associations of employees. An organization is described in section 501(c)(4) and exempt from tax under section 501(a) if it satisfies the requirements applicable to such status. Subject to certain exceptions, section 6033, in part, requires organizations exempt from taxation under section 501(a) to file annual information returns or notices, as applicable. Although an organization may apply to the IRS for recognition that the organization qualifies for tax-exempt status under section 501(c)(4), there is no requirement to do so (except as provided in section 6033(j)(2), which requires organizations that lose tax-exempt status for failure to file required annual information returns or notices and want to regain tax-exempt status to apply to obtain reinstatement of such status). Accordingly, a section 501(c)(4) organization that files annual information returns or notices, as required under section 6033, need not seek an IRS determination of its qualification for tax-exempt status in order to be described in and operate as a section 501(c)(4) organization. [[Page 45009]] 2. The PATH Act Section 405(a) of the PATH Act added section 506 to the Code, requiring an organization to notify the IRS of its intent to operate as a section 501(c)(4) organization. In addition, section 405(b) and (c) of the PATH Act amended sections 6033(f) and 6652(c), relating to information that section 501(c)(4) organizations may be required to include on their annual information returns and penalties for certain failures by tax-exempt organizations to comply with filing or disclosure requirements, respectively. Section 506(a) requires a section 501(c)(4) organization, no later than 60 days after the organization is established, to notify the Secretary of the Department of the Treasury (Secretary) that it is operating as a section 501(c)(4) organization (the notification). Section 506(b) provides that the notification must include: (1) The name, address, and taxpayer identification number of the organization; (2) the date on which, and the state under the laws of which, the organization was organized; and (3) a statement of the purpose of the organization. Section 506(c) requires the Secretary to send the organization an acknowledgment of the receipt of its notification within 60 days. Section 506(d) permits the Secretary to extend the 60- day notification period for reasonable cause. Section 506(e) provides that the Secretary shall impose a reasonable user fee for submission of the notification. Section 506(f) provides that, upon request by an organization, the Secretary may issue a determination with respect to the organization's treatment as a section 501(c)(4) organization and that the organization's request will be treated as an application for exemption from taxation under section 501(a) subject to public inspection under section 6104.\1\ --------------------------------------------------------------------------- \1\ The separate procedure by which an organization may request a determination of tax-exempt status is prescribed in Rev. Proc. 2016-5, 2016-1 IRB 188, or its successor. --------------------------------------------------------------------------- In addition, the PATH Act amended section 6033(f) to require a section 501(c)(4) organization submitting the notification to include with its first annual information return after submitting the notification any additional information prescribed by regulation that supports the organization's treatment as a section 501(c)(4) organization. The PATH Act also amended section 6652(c) to impose penalties for failure to submit the notification by the date and in the manner prescribed in regulations. In particular, section 6652(c)(4)(A) imposes a penalty on an organization that fails to submit the notification equal to $20 per day for each day such failure continues, up to a maximum of $5,000. Additionally, section 6652(c)(4)(B) imposes a similar penalty on persons who fail to timely submit the notification in response to a written request by the Secretary. Section 405(f) of the PATH Act provides that, in general, the requirement to submit the notification and the related amendments to sections 6033 and 6652 apply to section 501(c)(4) organizations that are established after December 18, 2015, the date of enactment of the PATH Act. Section 405(f)(2) of the PATH Act provides that these provisions also apply to any other section 501(c)(4) organizations that had not, on or before the date of enactment of the PATH Act: (1) Applied for a written determination of recognition as a section 501(c)(4) organization (using Form 1024, ``Application for Recognition of Exemption Under Section 501(a)''); or (2) filed at least one annual information return or notice required under section 6033(a)(1) or (i) (that is, a Form 990, ``Return of Organization Exempt From Income Tax,'' or, if eligible, Form 990-EZ, ``Short Form Return of Organization Exempt From Income Tax,'' or Form 990-N (e-Postcard)). Organizations described in section 405(f)(2) of the PATH Act must submit the notification within 180 days after the date of enactment of the PATH Act. 3. Notice 2016-09 The Treasury Department and the IRS issued Notice 2016-09 (2016-6 IRB 306 (February 8, 2016)) to provide interim guidance regarding section 405 of the PATH Act. Specifically, Notice 2016-09 extended the due date for submitting the notification until at least 60 days from the date that implementing regulations are issued in order to provide adequate transition time for organizations to comply with the new requirement to submit the notification. Notice 2016-09 further stated that no penalties under section 6652(c)(4) would apply to a section 501(c)(4) organization that submits the notification by the due date provided in the regulations. With respect to the separate procedure by which an organization may request a determination from the IRS that it qualifies for tax-exempt status under section 501(c)(4), Notice 2016-09 stated that organizations seeking IRS recognition of section 501(c)(4) status should continue using Form 1024 until further guidance is issued. Notice 2016-09 also clarified that the filing of Form 1024 does not relieve an organization of the requirement to submit the notification. The Treasury Department and the IRS received a public comment in response to Notice 2016-09, which was considered in drafting these temporary regulations. Explanation of Provisions 1. Overview of Temporary Regulations The temporary regulations prescribe the manner in which an organization must notify the IRS, consistent with section 506, that it is operating as a section 501(c)(4) organization. In addition, the temporary regulations clarify that the submission of the notification does not constitute a request by an organization for a determination from the IRS that it qualifies for tax-exempt status. 2. The Notification The IRS has developed a new electronic form, Form 8976, ``Notice of Intent to Operate Under Section 501(c)(4),'' for use by organizations submitting the notification. In accordance with section 506(a), the temporary regulations generally require a section 501(c)(4) organization to submit the notification to the IRS on Form 8976 (or its successor) no later than 60 days after the date the organization is organized. The Form 8976 must be submitted in accordance with the form and its instructions. Consistent with section 506(b), the temporary regulations specify that the notification must include: (1) The name, address, and taxpayer identification number of the organization; (2) the date on which, and the state or other jurisdiction under the laws of which, the organization was organized; and (3) a statement of the purpose of the organization. In addition, the temporary regulations provide that the notification must include such additional information as may be specified in published guidance in the Internal Revenue Bulletin or in other guidance, such as forms or instructions, issued with respect to the notification. To ensure that the statutorily required items of information in the notification are correlated accurately within existing IRS systems, Form 8976 requires organizations to provide their annual accounting period. The temporary regulations also provide that the notification must be accompanied by payment of the reasonable user fee authorized by section 506(e), which will be set forth by published guidance in the Internal Revenue Bulletin or in other guidance, such as forms or instructions, issued [[Page 45010]] with respect to the notification. Consistent with section 506(d), the temporary regulations state that the 60-day period for submitting the notification may be extended for reasonable cause. Further, the temporary regulations provide that, within 60 days after receipt of the notification, the IRS will send the organization an acknowledgment of such receipt. The temporary regulations clarify that this acknowledgment is not a determination with respect to tax- exempt status. Thus, it is not a determination on which an organization may rely or a determination or a failure to make a determination with respect to which the organization may seek declaratory judgment under section 7428. For further information regarding the interaction of the section 506 notification requirement with the separate procedure by which an organization may request an IRS determination that it qualifies for tax-exempt status under section 501(c)(4), see section 5 of this Explanation of Provisions. Finally, the temporary regulations provide that additional guidance on the procedures for submitting the notification may be provided in published guidance in the Internal Revenue Bulletin or in other guidance, such as forms or instructions, issued with respect to the notification. On July 8, 2016, the IRS released Rev. Proc. 2016-41, 2016-30 IRB xxxx, which provides additional information on the procedure for submitting the Form 8976. A public comment submitted in response to Notice 2016-09 suggested that section 506(a) should not apply to foreign organizations that do not conduct significant activities (other than investment activities) in the United States, even if the organizations may be required to submit a Form 990 to the IRS. As the commenter notes, foreign section 501(c)(4) organizations generally are required to file an annual information return or notice with the IRS under section 6033. See Rev. Proc. 2011-15, Sec. 3 (2011-3 IRB 322). Section 506(a) does not include an exception from the requirement to submit the notification for foreign section 501(c)(4) organizations. The Treasury Department and the IRS have determined that the regulations should not create such an exception because the requirement to submit the notification is intended to replace the former practice under which section 501(c)(4) organizations (both domestic and foreign) might not notify the IRS that they claim section 501(c)(4) status until they file a Form 990 return or notice. Accordingly, the temporary regulations clarify that a section 501(c)(4) organization must submit the notification whether it is organized in the United States or outside the United States. However, a foreign organization may be eligible for relief from penalties under section 6652 if it submits the notification promptly after first commencing activities or receiving income that would cause it to have a filing requirement under section 6033. Rev. Proc. 2016-41 includes an example to illustrate the availability of this relief. 3. Special Rules for Organizations Organized on or Before July 8, 2016 Under section 405(f)(2) of the PATH Act, the requirement to submit the notification does not apply to certain organizations that notified the IRS of their existence on or before December 18, 2015. The Treasury Department and the IRS recognize that, since the enactment of the PATH Act but before the availability of the new electronic Form 8976 for submitting the notification, additional section 501(c)(4) organizations may have notified the IRS of their existence by applying for a written determination of tax-exempt status or filing a required annual information return or notice. Accordingly, to reduce the burden on these organizations and the IRS, the temporary regulations provide relief from the requirement to submit the notification for any section 501(c)(4) organization that, on or before July 8, 2016, either: (1) Applied for a written determination of recognition as a section 501(c)(4) organization (using Form 1024); or (2) filed at least one annual return or notice required under section 6033(a)(1) or (i) (that is, a Form 990 or, if eligible, Form 990-EZ or Form 990-N). In order to allow adequate transition time for organizations that do not qualify for this transition relief to submit the notification in the manner prescribed by these regulations, the temporary regulations provide that an organization that was organized on or before July 8, 2016, will have until September 6, 2016, which is 60 days from the date that the regulations are filed with the Federal Register, to submit the notification. 4. Failure To Submit the Notification For information on the applicable penalties for failure to submit the notification, the temporary regulations refer to section 6652(c)(4), which imposes penalties on the organization and on persons who fail to timely submit the notification in response to a written request by the Secretary, as well as section 6652(c)(5), which provides a reasonable cause exception, and section 6652(c)(6), which provides other special rules that generally apply for purposes of section 6652(c) penalties. Under section 6652(c)(5), no penalty will be imposed with respect to a failure to submit the notification if it is shown that such failure is due to reasonable cause. Rev. Proc. 2016-41 addresses reasonable cause for abating a section 6652(c)(4) penalty. Under section 6652(c)(6), the section 6652(c)(4)(B) penalty imposed on ``persons'' who fail to timely submit the notification in response to a written request by the Secretary applies to any officer, director, trustee, employee, or other individual who is under a duty to submit the notification. In addition, under section 6652(c)(6), if more than one person is liable for the section 6652(c)(4)(B) penalty, all such persons will be jointly and severally liable with respect to the failure to submit the notification. 5. Separate Procedure by Which an Organization May Request an IRS Determination That It Qualifies for Section 501(c)(4) Exempt Status Section 506(f) provides that an organization subject to the section 506 notification requirement may request a determination to be treated as an organization described in section 501(c)(4). This indicates that the procedure by which an organization may request a determination that it is described in section 501(c)(4) is separate from the procedure for submitting the notification. Accordingly, the temporary regulations provide that submission of the notification does not constitute a request for an IRS determination that the organization qualifies for tax-exempt status under section 501(c)(4). Rather, an organization that seeks IRS recognition of tax-exempt status under section 501(c)(4) must separately request a determination in the manner prescribed in Revenue Procedure 2016-5, or its successor. If an organization receives a determination from the IRS recognizing tax-exempt status, the organization's application, supporting papers, and final determination letter are open to public inspection under section 6104(a)(1) and (d). The notification, by contrast, is not open for public inspection because it is not an application within the meaning of section 6104. 6. No Additional Information Required on Form 990 or 990-EZ at This Time Section 6033(f)(2), as amended by the PATH Act, provides that the IRS may require an organization that submits the [[Page 45011]] notification to include additional information in support of the organization's treatment as an organization described in section 501(c)(4) on the first Form 990 or 990-EZ, as applicable, filed by the organization after submitting the notification. The temporary regulations do not prescribe any additional information to be reported on Form 990 or 990-EZ at this time. The IRS will monitor the notification process to determine whether additional information is needed. Statement of Availability of IRS Documents For copies of recently issued revenue procedures, revenue rulings, notices, and other guidance published in the Internal Revenue Bulletin, please visit the IRS Web site at http://www.irs.gov. Special Analyses Certain IRS regulations, including this one, are exempt from the requirements of Executive Order 12866, as supplemented and reaffirmed by Executive Order 13563. Therefore, a regulatory assessment is not required. It has been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to these regulations. For applicability of the Regulatory Flexibility Act, please refer to the cross-referencing notice of proposed rulemaking published in the Proposed Rules section of this issue of the Federal Register. Pursuant to section 7805(f) of the Code, these regulations have been submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small business. Drafting Information The principal author of these regulations is Chelsea R. Rubin, Office of Associate Chief Counsel (Tax Exempt and Government Entities). However, other personnel from the Treasury Department and the IRS participated in their development. List of Subjects 26 CFR Part 1 Income taxes, Reporting and recordkeeping requirements. 26 CFR Part 602 Reporting and recordkeeping requirements. Adoption of Amendments to the Regulations Accordingly, 26 CFR parts 1 and 602 are amended as follows: PART 1--INCOME TAXES 0 Paragraph 1. The authority citation for part 1 continues to read in part as follows: Authority: 26 U.S.C. 7805 * * * 0 Par 2. Section 1.506-1T is added to read as follows: Sec. 1.506-1T Organizations required to notify Commissioner of intent to operate under section 501(c)(4) (temporary). (a) Notification requirement--(1) In general. Except as provided in paragraph (b) of this section, an organization (whether domestic or foreign) described in section 501(c)(4) must, no later than 60 days after the date the organization is organized, notify the Commissioner that it is operating as an organization described in section 501(c)(4) by submitting a completed Form 8976, ``Notice of Intent to Operate Under Section 501(c)(4),'' or its successor (the notification). The notification must be submitted in accordance with the form and its instructions. The notification must include the information specified in paragraph (a)(2) of this section and be accompanied by payment of the user fee described in paragraph (a)(3) of this section. Additional guidance on the procedure for submitting the notification may be provided in published guidance in the Internal Revenue Bulletin (see Sec. 601.601(d)(2) of this chapter) or in other guidance, such as forms or instructions, issued with respect to the notification. (2) Contents of the notification. The notification must include the following information: (i) The name, address, and taxpayer identification number of the organization. (ii) The date on which, and the state or other jurisdiction under the laws of which, the organization was organized (that is, formed as a legal entity). For an organization formed outside the United States, the jurisdiction is the foreign country under the laws of which it is organized. (iii) A statement of the purpose of the organization. (iv) Such additional information as may be specified in published guidance in the Internal Revenue Bulletin (see Sec. 601.601(d)(2) of this chapter) or in other guidance, such as forms or instructions, issued with respect to the notification. (3) User fee. The notification must be accompanied by payment of the user fee set forth by published guidance in the Internal Revenue Bulletin (see Sec. 601.601(d)(2) of this chapter) or in other guidance, such as forms or instructions, issued with respect to the notification. (4) Extension for reasonable cause. The Commissioner may, for reasonable cause, extend the 60-day period for submitting the notification. (b) Special rules for organizations that were organized on or before July 8, 2016--(1) Notification requirement does not apply to organizations that filed with the IRS on or before December 18, 2015. The requirement to submit the notification does not apply to any organization described in section 501(c)(4) that, on or before December 18, 2015, either-- (i) Applied for a written determination of recognition as an organization described in section 501(c)(4) in accordance with Sec. 1.501(a)-1 and all applicable guidance published in the Internal Revenue Bulletin (see Sec. 601.601(d)(2) of this chapter), forms, and instructions; or (ii) Filed at least one annual information return or annual electronic notification required under section 6033(a)(1) or (i). (2) Transition relief available for organizations that filed with the IRS on or before July 8, 2016. An organization described in section 501(c)(4) is not required to submit the notification if, on or before July 8, 2016, the organization either-- (i) Applied for a written determination of recognition as an organization described in section 501(c)(4) in accordance with Sec. 1.501(a)-1 and all applicable guidance published in the Internal Revenue Bulletin (see Sec. 601.601(d)(2) of this chapter), forms, and instructions; or (ii) Filed at least one annual information return or annual electronic notification required under section 6033(a)(1) or (i). (3) Extended due date. An organization that was organized on or before July 8, 2016, and is not described in paragraph (b)(1) or (2) of this section, will satisfy the requirement to submit the notification if the notification is submitted on or before September 6, 2016. (c) Failure to submit the notification. For information on the penalties for failure to submit the notification, the applicable reasonable cause exception, and applicable special rules, see section 6652(c)(4) through (6). (d) Acknowledgment of receipt. Within 60 days after receipt of the notification, the Commissioner will send the organization an acknowledgment of such receipt. This acknowledgment is not a determination by the Commissioner that the [[Page 45012]] organization qualifies for exemption under section 501(a) as an organization described in section 501(c)(4). See paragraph (e) of this section. (e) Separate procedure by which an organization may request an IRS determination that it qualifies for section 501(c)(4) tax-exempt status. Submission of the notification does not constitute a request by an organization for a determination by the Commissioner that the organization qualifies for exemption under section 501(a) as an organization described in section 501(c)(4). An organization seeking IRS recognition of its tax-exempt status must separately request such a determination in accordance with Sec. 1.501(a)-1 and all applicable guidance published in the Internal Revenue Bulletin (see Sec. 601.601(d)(2) of this chapter), forms, and instructions. (f) Effective/applicability date. This section applies on and after July 8, 2016. (g) Expiration date. The applicability of this section expires on or before July 8, 2019. PART 602--OMB CONTROL NUMBERS UNDER THE PAPERWORK REDUCTION ACT 0 Par. 3. The authority for part 602 continues to read as follows: Authority: 26 U.S.C. 7805 * * * 0 Par. 4. In Sec. 602.101, paragraph (b) is amended by adding the following entry in numerical order to the table to read as follows: Sec. 602.101 OMB Control numbers. * * * * * (b) * * * ------------------------------------------------------------------------ Current OMB CFR part or section where Identified and described control No. ------------------------------------------------------------------------ * * * * * 1.506-1T................................................ 1545-2268 * * * * * ------------------------------------------------------------------------ John Dalrymple, Deputy Commissioner for Services and Enforcement. Approved: June 24, 2016. Mark J. Mazur, Assistant Secretary of the Treasury (Tax Policy). [FR Doc. 2016-16338 Filed 7-8-16; 11:15 am] BILLING CODE 4830-01-P
![45008 Federal Register / Vol. 81, No. 133 / Tuesday, July 12, 2016 / Rules and Regulations
part 39 of the Code of Federal DEPARTMENT OF THE TREASURY Books and records relating to a
Regulations, as follows: collection of information must be
Internal Revenue Service retained as long as their contents may
PART 39—RULES CONCERNING become material in the administration
CERTIFICATION OF THE ELECTRIC 26 CFR Parts 1 and 602 of any internal revenue law. Generally,
RELIABILITY ORGANIZATION; AND tax returns and tax return information
[TD 9775]
PROCEDURES FOR THE are confidential, as required by 26
ESTABLISHMENT, APPROVAL, AND RIN 1545–BN26
U.S.C. 6103.
ENFORCEMENT OF ELECTRIC
RELIABILITY STANDARDS Requirement To Notify the IRS of Intent Background
To Operate as a Section 501(c)(4)
Organization; Final and Temporary This Treasury decision contains
■ 1. The authority citation for part 39
Regulations temporary regulations under section 506
continues to read as follows:
of the Code. Section 405 of the
Authority: 16 U.S.C. 824o. AGENCY: Internal Revenue Service (IRS),
Protecting Americans from Tax Hikes
Treasury.
Act of 2015 (Pub. L. 114–113, div. Q)
■ 2. Amend § 39.11 to add paragraph (c) ACTION: Final and temporary
as follows: (the PATH Act), enacted on December
regulations. 18, 2015, added section 506 to the Code
§ 39.11 Reliability reports. SUMMARY: This document contains final and amended sections 6033 and 6652.
* * * * * and temporary regulations relating to Because the statutory provisions were
the requirement, added by the effective upon enactment and certain
(c) The Electric Reliability section 501(c)(4) organizations must
Organization shall make available to the Protecting Americans from Tax Hikes
Act of 2015, that organizations must notify the IRS within 60 days of
Commission, on a non-public and
notify the IRS of their intent to operate formation, these temporary regulations
ongoing basis, access to the
under section 501(c)(4) of the Internal are necessary to provide prompt
Transmission Availability Data System,
Revenue Code (Code). The regulations guidance to enable section 501(c)(4)
Generator Availability Data System, and
affect organizations described in section organizations to satisfy the new
protection system misoperations
501(c)(4) (section 501(c)(4) statutory notification requirement and
databases, or any successor databases
thereto. Such access will be limited to: organizations) that are organized after provide appropriate transition relief.
December 18, 2015, and certain section
(1) Data regarding U.S. facilities; and 1. Section 501(c)(4) Organizations
501(c)(4) organizations existing on that
(2) Data that is required to be date. The text of the temporary Section 501(a) of the Code generally
provided to the ERO. regulations serves as the text of the provides that an organization described
The following appendix will not proposed regulations set forth in the in section 501(c) is exempt from federal
appear in the Code of Federal related notice of proposed rulemaking income tax. Section 501(c)(4) describes
Regulations. (REG–101689–16) published in the certain civic leagues or organizations
Proposed Rules section in this issue of operated exclusively for the promotion
Appendix the Federal Register. of social welfare and certain local
Commenters DATES: associations of employees. An
Effective Date: These regulations are organization is described in section
American Public Power Association, Large
effective on July 8, 2016. 501(c)(4) and exempt from tax under
Public Power Council, and the
Applicability Date: For date of section 501(a) if it satisfies the
Transmission Access Policy Study Group
(collectively, Public Power Associations)
applicability, see § 1.506–1T(f). requirements applicable to such status.
Canadian Electricity Association (CEA) FOR FURTHER INFORMATION CONTACT: Subject to certain exceptions, section
David Jonas Bardin (David Bardin) Chelsea Rubin at (202) 317–5800 (not a 6033, in part, requires organizations
Edison Electric Institute, Electric Power toll-free number). exempt from taxation under section
Supply Association, Electricity Consumers SUPPLEMENTARY INFORMATION: 501(a) to file annual information returns
Resource Council, and the National Rural or notices, as applicable.
Electric Cooperative Association
Paperwork Reduction Act
The collection of information Although an organization may apply
(collectively, Trade Associations)
Foundation for Resilient Societies (Resilient contained in these final and temporary to the IRS for recognition that the
Societies) regulations will be reviewed and, organization qualifies for tax-exempt
Kansas City Power & Light Company pending receipt and evaluation of status under section 501(c)(4), there is
(KCP&L) public comments, approved by the no requirement to do so (except as
North American Electric Reliability Office of Management and Budget under provided in section 6033(j)(2), which
Corporation (NERC) control number 1545–2268. requires organizations that lose tax-
Northwest Public Power Association An agency may not conduct or exempt status for failure to file required
(NWPPA) sponsor, and a person is not required to annual information returns or notices
Rio Tinto Alcan Inc. (RTA) respond to, a collection of information and want to regain tax-exempt status to
SGS Statistical Services (SGS) unless the collection of information apply to obtain reinstatement of such
Tri-State Generation and Transmission displays a valid control number. status). Accordingly, a section 501(c)(4)
mstockstill on DSK3G9T082PROD with RULES
Association, Inc. (Tri-State) For further information concerning organization that files annual
Western Electric Coordinating Council this collection of information, please information returns or notices, as
(WECC) refer to the preamble to the cross- required under section 6033, need not
Western Interconnection Regional Advisory referencing notice of proposed seek an IRS determination of its
Board (WIRAB) rulemaking published in the Proposed qualification for tax-exempt status in
[FR Doc. 2016–14760 Filed 7–11–16; 8:45 am] Rules section of this issue of the Federal order to be described in and operate as
BILLING CODE 6717–01–P Register. a section 501(c)(4) organization.
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organization qualifies for exemption DEPARTMENT OF THE TREASURY chapter 23 of the Code, the IRS expects
under section 501(a) as an organization to evaluate’’.
described in section 501(c)(4). See Internal Revenue Service
Martin V. Franks,
paragraph (e) of this section.
Chief, Publications and Regulations Branch,
(e) Separate procedure by which an 26 CFR Parts 301 and 602 Legal Processing Division, Associate Chief
organization may request an IRS Counsel, (Procedure and Administration).
determination that it qualifies for [TD 9768] [FR Doc. 2016–16400 Filed 7–11–16; 8:45 am]
section 501(c)(4) tax-exempt status. BILLING CODE 4830–01–P
Submission of the notification does not RIN 1545–BN20
constitute a request by an organization
for a determination by the Certified Professional Employer DEPARTMENT OF HOMELAND
Commissioner that the organization Organizations; Correction SECURITY
qualifies for exemption under section
501(a) as an organization described in AGENCY: Internal Revenue Service (IRS), Coast Guard
Treasury.
section 501(c)(4). An organization
seeking IRS recognition of its tax- ACTION: Final and temporary 33 CFR Parts 97 and 160
exempt status must separately request regulations; correction.
46 CFR Part 97
such a determination in accordance
with § 1.501(a)–1 and all applicable SUMMARY: This document contains [Docket No. USCG–2000–7080]
guidance published in the Internal corrections to final and temporary RIN 1625–AA25 [Formerly RIN 2115–AF97]
Revenue Bulletin (see § 601.601(d)(2) of regulations (TD 9768) that were
this chapter), forms, and instructions. published in the Federal Register on Cargo Securing Manuals
(f) Effective/applicability date. This May 6, 2016 (81 FR 27315). The final
and temporary regulations are relating AGENCY: Coast Guard, DHS.
section applies on and after July 8, 2016.
to certified professional employer ACTION: Interim rule; information
(g) Expiration date. The applicability organizations (CPEOs). The Stephen collection approval.
of this section expires on or before July Beck, Jr. Achieving a Better Life
8, 2019. SUMMARY: The Coast Guard announces
Experience Act of 2014 requires the IRS
that it has received approval from the
to establish a voluntary certification
PART 602—OMB CONTROL NUMBERS Office of Management and Budget for an
program for professional employer
UNDER THE PAPERWORK information collection request
organizations. These final and
REDUCTION ACT associated with the Cargo Securing
temporary regulations contain the
Manuals interim rule we published in
requirements a person must satisfy in
■ Par. 3. The authority for part 602 the Federal Register on May 9, 2016. In
order to become and remain a CPEO.
continues to read as follows: that rule, we stated the interim rule will
DATES: This correction is effective on impose new information collection
Authority: 26 U.S.C. 7805 * * * July 12, 2016 and applicable on May 6, requirements and that we would submit
2016. these new information collection
■ Par. 4. In § 602.101, paragraph (b) is requirements to OMB for its review and
amended by adding the following entry FOR FURTHER INFORMATION CONTACT:
publish a document in the Federal
in numerical order to the table to read Melissa L. Duce at (202) 317–6798 (not Register announcing the results of
as follows: a toll free number). OMB’s review. OMB approved this new
SUPPLEMENTARY INFORMATION: collection of information, entitled Cargo
§ 602.101 OMB Control numbers. Securing Manuals, on June 23, 2016,
* * * * * Background and assigned it OMB control number
(b) * * * 1625–0122.
The final and temporary regulations
(TD 9768) that are the subject of this DATES: On June 23, 2016, OMB
CFR part or section where Current OMB correction are under sections 3511, and approved the Coast Guard’s collection of
Identified and described control No. information request associated with the
7705 of the Internal Revenue Code.
Cargo Securing Manuals interim rule
Need for Correction published May 9, 2016 at 81 FR 27992.
* * * * *
OMB’s approval for this collection of
1.506–1T ............................... 1545–2268 As published, the final and temporary information expires on June 30, 2019.
regulations (TD 9768) contains an error
* * * * * FOR FURTHER INFORMATION CONTACT: If
that may prove to be misleading and is
in need of clarification. you have questions on this rule, call or
email Mr. Ken Smith, Environmental
John Dalrymple, Correction of Publication Standards Division (CG–OES–2), U.S.
Deputy Commissioner for Services and Coast Guard; telephone 202–372–1413,
Enforcement. Accordingly, the final and temporary email Ken.A.Smith@uscg.mil.
Approved: June 24, 2016. regulations (TD 9768), that are the
SUPPLEMENTARY INFORMATION:
subject of FR Doc. 2016–10700, are
mstockstill on DSK3G9T082PROD with RULES
Mark J. Mazur,
corrected as follows: Viewing Items Associated With This
Assistant Secretary of the Treasury (Tax
1. On page 27320, in the preamble, Document
Policy).
[FR Doc. 2016–16338 Filed 7–8–16; 11:15 am] the third column, the fourth line from To view OMB’s approval memo or the
BILLING CODE 4830–01–P
the top of the footnote, the language ‘‘by Cargo Securing Manuals interim rule, go
chapter 23 of Code, the IRS expects to to www.regulations.gov, type the docket
evaluate’’ is corrected to read ‘‘by number, USCG–2000–7080, in the
VerDate Sep<11>2014 17:56 Jul 11, 2016 Jkt 238001 PO 00000 Frm 00032 Fmt 4700 Sfmt 4700 E:\FR\FM\12JYR1.SGM 12JYR1](https://thefederalregister.org/doc/81_FR_45141/page/5.svg)
Document Created: 2016-07-12 01:59:23
Document Modified: 2016-07-12 01:59:23
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final and temporary regulations. | |
| Contact | Chelsea Rubin at (202) 317-5800 (not a toll-free number). | |
| FR Citation | 81 FR 45008 | |
| RIN Number | 1545-BN26 | |
| CFR Citation | 26
CFR
1 26 CFR 602 | |
| CFR Associated | Income Taxes and Reporting and Recordkeeping Requirements |
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