New Form 1024-A for 501(c)(4) Organizations

On January 16, 2018, the IRS released the final version of Form 1024-A, Application for Recognition of Exemption under Section 501(c)(4) of the Internal Revenue Code (“IRC”). While organizations that believe they are properly classified as a 501(c)(4) organization may self-declare their tax exempt status, organizations that choose to apply for IRC Section 501(c)(4) exemption with the IRS may no longer use the same Form 1024 as other non-501(c)(3) organizations.

The Form 1024-A requires similar information as the existing Form 1024 (which organizations should use to apply for recognition of exemption under 501(c)(5), (6), (7), and others) including but not limited to:

  • Organizational structure of the entity;
  • Information about the organization’s officers, directors, employees, and independent contractors, and whether such individuals are compensated;
  • A narrative of the organization’s past, present, and planned activities;
  • Whether the organization will engage in electioneering activities;
  • Information about the organization’s membership, if any;
  • Whether the organization has a relationship with or is connected to another exempt or nonexempt organization;
  • Whether the organization receives payment for services;
  • Whether the organization plans to lease property;
  • Whether the organization plans to engage in foreign activities or grantmaking; and
  • Financial data

It is important to read the instructions to Form 1024-A carefully to determine if additional attachments are required.

Filers of Form 1024-A must include Form 8718, User Fee for Exempt Organization Determination Letter Request, and the correct user fee, which is $600.

Also note that, whether or not 501(c)(4) organizations choose to apply for exemption with Form 1023-A, each must file Form 8976 to notify the IRS of their intent to operate within 60 days of formation.