81 FR 45088 - Requirement To Notify the IRS of Intent To Operate as a Section 501(c)(4) Organization

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 81, Issue 133 (July 12, 2016)

Page Range		45088-45089
FR Document		2016-16337

In the Rules and Regulations section of this issue of the Federal Register, the IRS is issuing 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 text of those temporary regulations also serves as the text of these proposed regulations.

Federal Register, Volume 81 Issue 133 (Tuesday, July 12, 2016)

[Federal Register Volume 81, Number 133 (Tuesday, July 12, 2016)]
[Proposed Rules]
[Pages 45088-45089]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-16337]



[[Page 45088]]

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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-101689-16]
RIN 1545-BN25


Requirement To Notify the IRS of Intent To Operate as a Section 
501(c)(4) Organization

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations.

-----------------------------------------------------------------------

SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the IRS is issuing 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 text of those temporary regulations also serves as the text of 
these proposed regulations.

DATES: Comments and requests for a public hearing must be received by 
October 11, 2016.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-101689-16), room 
5205, Internal Revenue Service, PO Box 7604, Ben Franklin Station, 
Washington, DC 20044. Submissions may be hand-delivered Monday through 
Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG-
101689-16), Courier's Desk, Internal Revenue Service, 1111 Constitution 
Avenue NW., Washington, DC, or sent electronically via the Federal 
eRulemaking Portal at http://www.regulations.gov (IRS REG-101689-16).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Chelsea Rubin at (202) 317-5800; concerning submission of comments and 
request for hearing, Regina Johnson at (202) 317-6901 (not toll-free 
numbers).

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act

    The collection of information contained in this notice of proposed 
rulemaking will be reviewed and, pending receipt and evaluation of 
public comments, approved by the Office of Management and Budget under 
control number 1545-2268 in accordance with the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3507(d)). Comments on the collection of information 
should be sent to the Office of Management and Budget, Attn: Desk 
Officer for the Department of the Treasury, Office of Information and 
Regulatory Affairs, Washington, DC 20503, with copies to the Internal 
Revenue Service, Attn: IRS Reports Clearance Officer, 
SE:W:CAR:MP:T:T:SP, Washington, DC 20224. Comments on the collection of 
information should be received by September 12, 2016.
    The collection of information is in Sec.  1.506-1T(a)(2). The 
likely respondents are organizations described in section 501(c)(4) of 
the Code (section 501(c)(4) organizations). The collection of 
information in Sec.  1.506-1T(a)(2) flows from section 506(b) of the 
Code, which requires a section 501(c)(4) organization to submit a 
notification including the following items of information: (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. The temporary regulations provide that the notification 
must be submitted on Form 8976, ``Notice of Intent to Operate Under 
Section 501(c)(4),'' or its successor. In addition to the specific 
information required by statute, the temporary regulations require that 
an organization provide any additional information that 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. Form 8976 requires an organization to provide its 
annual accounting period to ensure that the statutorily-required items 
of information in the notification are correlated accurately within 
existing IRS systems. The burden for the collection of information in 
Sec.  1.506-1T(a)(2)(i) through (iv) associated with the one-time 
submission of the notification will be reflected in the burden estimate 
for Form 8976.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a valid 
control number assigned by the Office of Management and Budget.
    Books or 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 
return information are confidential, as required by 26 U.S.C. 6103.

Background and Explanation of Provisions

    Temporary regulations in the Rules and Regulations section of this 
issue of the Federal Register contain amendments to the Income Tax 
Regulations (26 CFR part 1) that provide guidance relating to section 
405 of the Protecting Americans from Tax Hikes Act of 2015 (Pub. L. 
114-113, div. Q), regarding the new requirement that organizations must 
notify the IRS of their intent to operate under section 501(c)(4) of 
the Code. The text of those temporary regulations also serves as the 
text of these proposed regulations and the preamble to the temporary 
regulations explains the relevant provisions.

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 also has been determined that section 553(b) of the 
Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to 
these regulations. It is hereby certified that the collection of 
information in these regulations will not have a significant impact on 
a substantial number of small entities. The collection of information 
is in Sec.  1.506-1T(a)(2). The certification is based on the 
following:
    Section 1.506-1T(a)(2) requires the notification to include only a 
few pieces of basic information: (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; (3) a statement of the purpose of the 
organization; and (4) such additional information as may be prescribed 
by published guidance in the Internal Revenue Bulletin or in other 
guidance, such as forms or instructions, issued with respect to the 
notification.
    These requirements will have a minimal burden on section 501(c)(4) 
organizations submitting the notification, including small section 
501(c)(4) organizations. The notification requires only basic 
information regarding the organization and, as such,

[[Page 45089]]

will require little time to submit. Moreover, the burden on small 
organizations is further minimized because the information is only 
required to be submitted once.
    For these reasons, a Regulatory Flexibility Analysis under the 
Regulatory Flexibility Act (5 U.S.C. chapter 6) is not required. 
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.

Comments and Requests for Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any comments that are submitted timely 
to the IRS as prescribed in this preamble under the ADDRESSES heading. 
The Treasury Department and the IRS request comments on all aspects of 
the proposed rules. All comments will be available at 
www.regulations.gov or upon request.
    A public hearing will be scheduled if requested in writing by any 
person that timely submits written comments. If a public hearing is 
scheduled, notice of the date, time, and place for the public hearing 
will be published in the Federal Register.

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 in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 1 is proposed to be amended as follows:

PART 1--INCOME TAXES

    Paragraph 1. The authority citation for part 1 continues to read in 
part as follows:

    Authority:  26 U.S.C. 7805 * * *

    Par. 2. Section 1.506-1 is added to read as follows:


Sec.  1.506-1  Organizations required to notify Commissioner of intent 
to operate under section 501(c)(4).

    [The text of proposed Sec.  1.506-1 is the same as the text for 
Sec.  1.506-1T published elsewhere in this issue of the Federal 
Register].

John Dalrymple,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2016-16337 Filed 7-8-16; 11:15 am]
 BILLING CODE 4830-01-P

45088 Federal Register / Vol. 81, No. 133 / Tuesday, July 12, 2016 / Proposed Rules

DEPARTMENT OF THE TREASURY information should be sent to the Office Background and Explanation of
of Management and Budget, Attn: Desk Provisions
Internal Revenue Service Officer for the Department of the Temporary regulations in the Rules
Treasury, Office of Information and and Regulations section of this issue of
26 CFR Part 1 Regulatory Affairs, Washington, DC the Federal Register contain
[REG–101689–16] 20503, with copies to the Internal amendments to the Income Tax
Revenue Service, Attn: IRS Reports Regulations (26 CFR part 1) that provide
RIN 1545–BN25 Clearance Officer, guidance relating to section 405 of the
SE:W:CAR:MP:T:T:SP, Washington, DC Protecting Americans from Tax Hikes
Requirement To Notify the IRS of Intent 20224. Comments on the collection of
To Operate as a Section 501(c)(4) Act of 2015 (Pub. L. 114–113, div. Q),
information should be received by regarding the new requirement that
Organization September 12, 2016. organizations must notify the IRS of
AGENCY: Internal Revenue Service (IRS), The collection of information is in their intent to operate under section
Treasury. § 1.506–1T(a)(2). The likely respondents 501(c)(4) of the Code. The text of those
ACTION: Notice of proposed rulemaking are organizations described in section temporary regulations also serves as the
by cross-reference to temporary 501(c)(4) of the Code (section 501(c)(4) text of these proposed regulations and
regulations. organizations). The collection of the preamble to the temporary
information in § 1.506–1T(a)(2) flows regulations explains the relevant
SUMMARY: In the Rules and Regulations from section 506(b) of the Code, which provisions.
section of this issue of the Federal requires a section 501(c)(4) organization
Register, the IRS is issuing temporary Statement of Availability of IRS
to submit a notification including the Documents
regulations relating to the requirement, following items of information: (1) The
added by the Protecting Americans from For copies of recently issued revenue
name, address, and taxpayer
Tax Hikes Act of 2015, that procedures, revenue rulings, notices,
identification number of the
organizations must notify the IRS of and other guidance published in the
organization; (2) the date on which, and
their intent to operate under section Internal Revenue Bulletin, please visit
the state under the laws of which, the
501(c)(4) of the Internal Revenue Code the IRS Web site at http://www.irs.gov.
organization was organized; and (3) a
(Code). The text of those temporary
statement of the purpose of the Special Analyses
regulations also serves as the text of
these proposed regulations. organization. The temporary regulations Certain IRS regulations, including this
provide that the notification must be one, are exempt from the requirements
DATES: Comments and requests for a
submitted on Form 8976, ‘‘Notice of of Executive Order 12866, as
public hearing must be received by Intent to Operate Under Section
October 11, 2016. supplemented and reaffirmed by
501(c)(4),’’ or its successor. In addition Executive Order 13563. Therefore, a
ADDRESSES: Send submissions to: to the specific information required by regulatory assessment is not required. It
CC:PA:LPD:PR (REG–101689–16), room statute, the temporary regulations also has been determined that section
5205, Internal Revenue Service, PO Box require that an organization provide any 553(b) of the Administrative Procedure
7604, Ben Franklin Station, Washington, additional information that may be Act (5 U.S.C. chapter 5) does not apply
DC 20044. Submissions may be hand- specified in published guidance in the to these regulations. It is hereby
delivered Monday through Friday Internal Revenue Bulletin or in other certified that the collection of
between the hours of 8 a.m. and 4 p.m. guidance, such as forms or instructions, information in these regulations will not
to CC:PA:LPD:PR (REG–101689–16), issued with respect to the notification. have a significant impact on a
Courier’s Desk, Internal Revenue Form 8976 requires an organization to substantial number of small entities.
Service, 1111 Constitution Avenue NW., provide its annual accounting period to The collection of information is in
Washington, DC, or sent electronically ensure that the statutorily-required § 1.506–1T(a)(2). The certification is
via the Federal eRulemaking Portal at
items of information in the notification based on the following:
http://www.regulations.gov (IRS REG–
are correlated accurately within existing Section 1.506–1T(a)(2) requires the
101689–16).
IRS systems. The burden for the notification to include only a few pieces
FOR FURTHER INFORMATION CONTACT: collection of information in § 1.506– of basic information: (1) The name,
Concerning the proposed regulations, 1T(a)(2)(i) through (iv) associated with address, and taxpayer identification
Chelsea Rubin at (202) 317–5800; the one-time submission of the number of the organization; (2) the date
concerning submission of comments notification will be reflected in the on which, and the state or other
and request for hearing, Regina Johnson burden estimate for Form 8976. jurisdiction under the laws of which,
at (202) 317–6901 (not toll-free the organization was organized; (3) a
numbers). An agency may not conduct or
statement of the purpose of the
sponsor, and a person is not required to
SUPPLEMENTARY INFORMATION: organization; and (4) such additional
respond to, a collection of information
information as may be prescribed by
Paperwork Reduction Act unless it displays a valid control
published guidance in the Internal
number assigned by the Office of
The collection of information Revenue Bulletin or in other guidance,
Management and Budget.
contained in this notice of proposed such as forms or instructions, issued
mstockstill on DSK3G9T082PROD with PROPOSALS

rulemaking will be reviewed and, Books or records relating to a with respect to the notification.
pending receipt and evaluation of collection of information must be These requirements will have a
public comments, approved by the retained as long as their contents may minimal burden on section 501(c)(4)
Office of Management and Budget under become material in the administration organizations submitting the
control number 1545–2268 in of any internal revenue law. Generally, notification, including small section
accordance with the Paperwork tax returns and return information are 501(c)(4) organizations. The notification
Reduction Act of 1995 (44 U.S.C. confidential, as required by 26 U.S.C. requires only basic information
3507(d)). Comments on the collection of 6103. regarding the organization and, as such,

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Federal Register / Vol. 81, No. 133 / Tuesday, July 12, 2016 / Proposed Rules 45089

will require little time to submit. published elsewhere in this issue of the hunt.virginia@epa.gov to verify that a
Moreover, the burden on small Federal Register]. hearing will be held. If the EPA holds
organizations is further minimized a public hearing, the EPA will keep the
John Dalrymple,
because the information is only required record of the hearing open for 30 days
to be submitted once. Deputy Commissioner for Services and after completion of the hearing to
Enforcement.
For these reasons, a Regulatory provide an opportunity for submission
[FR Doc. 2016–16337 Filed 7–8–16; 11:15 am]
Flexibility Analysis under the of rebuttal and supplementary
BILLING CODE 4830–01–P information.
Regulatory Flexibility Act (5 U.S.C.
chapter 6) is not required. Pursuant to ADDRESSES: Submit your comments,
section 7805(f) of the Code, these identified by Docket ID No. EPA–HQ–
regulations have been submitted to the ENVIRONMENTAL PROTECTION OAR–2010–0895, at http://
Chief Counsel for Advocacy of the Small AGENCY www.regulations.gov. Follow the online
Business Administration for comment instructions for submitting comments.
40 CFR Part 63
on its impact on small business. Once submitted, comments cannot be
Comments and Requests for Public [EPA–HQ–OAR–2010–0895; FRL–9948–86– edited or removed from Regulations.gov.
OAR] The EPA may publish any comment
Hearing
RIN 2060–AS90 received to its public docket. Do not
Before these proposed regulations are submit electronically any information
adopted as final regulations, National Emission Standards for you consider to be confidential business
consideration will be given to any Hazardous Air Pollutants: Ferroalloys information (CBI) or other information
comments that are submitted timely to Production whose disclosure is restricted by statute.
the IRS as prescribed in this preamble Multimedia submissions (audio, video,
under the ADDRESSES heading. The AGENCY: Environmental Protection etc.) must be accompanied by a written
Treasury Department and the IRS Agency (EPA). comment. The written comment is
request comments on all aspects of the ACTION: Reconsideration; proposed rule. considered the official comment and
proposed rules. All comments will be should include discussion of all points
available at www.regulations.gov or SUMMARY: On June 30, 2015, the you wish to make. The EPA will
upon request. Environmental Protection Agency (EPA) generally not consider comments or
A public hearing will be scheduled if published the residual risk and comment contents located outside of the
requested in writing by any person that technology review (RTR) final rule, primary submission (i.e., on the Web,
timely submits written comments. If a establishing national emission standards cloud, or other file sharing system). For
public hearing is scheduled, notice of for hazardous air pollutants (NESHAP) additional submission methods, the full
the date, time, and place for the public for the Ferroalloys Production source EPA public comment policy information
hearing will be published in the Federal category. Subsequently, the EPA about CBI, or multimedia submissions,
Register. received two petitions for and general guidance on making
reconsideration of certain aspects of the effective comments, please visit http://
Drafting Information final rule. The EPA is announcing www2.epa.gov/dockets/commenting-
The principal author of these reconsideration of and requesting public epa-dockets.
regulations is Chelsea R. Rubin, Office comment on three issues raised in the Instructions. Direct your comments to
of Associate Chief Counsel (Tax Exempt petitions for reconsideration, as detailed Docket ID No. EPA–HQ–OAR–2010–
and Government Entities). However, in the SUPPLEMENTARY INFORMATION 0895. The EPA’s policy is that all
other personnel from the Treasury section of this action. The three issues comments received will be included in
Department and the IRS participated in the EPA is reconsidering and seeking the public docket without change and
their development. public comment on are the following: may be made available online at http://
the polycyclic aromatic hydrocarbons www.regulations.gov, including any
List of Subjects in 26 CFR Part 1 (PAH) compliance testing frequency for personal information provided, unless
furnaces that produce ferromanganese the comment includes information
Income taxes, Reporting and
(FeMn); the use of the digital camera claimed to be CBI or other information
recordkeeping requirements.
opacity technique (DCOT) for whose disclosure is restricted by statute.
Proposed Amendments to the determining compliance with the shop Do not submit information that you
Regulations building opacity standards; and the use consider to be CBI or otherwise
of bag leak detection systems (BLDS) on protected through http://
Accordingly, 26 CFR part 1 is
positive pressure baghouses. The EPA is www.regulations.gov or email. The
proposed to be amended as follows:
seeking comment only on these three http://www.regulations.gov Web site is
PART 1—INCOME TAXES issues and will not respond to an ‘‘anonymous access’’ system, which
comments addressing other issues or means the EPA will not know your
Paragraph 1. The authority citation other provisions of the final rule. The
for part 1 continues to read in part as identity or contact information unless
EPA is not proposing any changes to the you provide it in the body of your
follows: NESHAP in this document. comment. If you submit an electronic
Authority: 26 U.S.C. 7805 * * * DATES: Comments. Comments must be comment through http://
mstockstill on DSK3G9T082PROD with PROPOSALS

Par. 2. Section 1.506–1 is added to received on or before August 26, 2016. www.regulations.gov, the EPA
read as follows: Public Hearing. If anyone contacts us recommends that you include your
requesting to speak at a public hearing name and other contact information in
§ 1.506–1 Organizations required to notify by July 18, 2016, a public hearing will the body of your comment and with any
Commissioner of intent to operate under be held on July 27, 2016. If you are disk or CD–ROM you submit. If the EPA
section 501(c)(4). interested in attending the public cannot read your comment due to
[The text of proposed § 1.506–1 is the hearing, contact Ms. Virginia Hunt at technical difficulties and cannot contact
same as the text for § 1.506–1T (919) 541–0832 or by email at you for clarification, the EPA may not

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Document Created: 2016-07-12 01:59:05
Document Modified: 2016-07-12 01:59:05

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		Proposed Rules
Action		Notice of proposed rulemaking by cross-reference to temporary regulations.
Dates		Comments and requests for a public hearing must be received by October 11, 2016.
Contact		Concerning the proposed regulations, Chelsea Rubin at (202) 317-5800; concerning submission of comments and request for hearing, Regina Johnson at (202) 317-6901 (not toll-free numbers).
FR Citation		81 FR 45088
RIN Number		1545-BN25
CFR Associated		Income Taxes and Reporting and Recordkeeping Requirements

81 FR 45088 - Requirement To Notify the IRS of Intent To Operate as a Section 501(c)(4) Organization

DEPARTMENT OF THE TREASURYInternal Revenue Service

Federal Register Volume 81, Issue 133 (July 12, 2016)

DEPARTMENT OF THE TREASURY
Internal Revenue Service