§506 — Title 26 Internal Revenue Code | U.S. Code

Summary

A social welfare organization seeking tax-exempt status under section 501(c)(4) must notify the IRS within 60 days after it is established that it is operating as one. The notice must give the organization's name, address, and taxpayer ID number, the date and state of its formation, and a statement of its purpose. The IRS must acknowledge receipt within 60 days, may extend the 60-day filing window for reasonable cause, and charges a reasonable user fee for the notice. The organization can also ask the IRS for a formal determination of its status, which is treated like an application for exemption.

Title 26, §506

Internal Revenue Code — Source: USLM XML via OLRC

(a)An organization described in section 501(c)(4) shall, not later than 60 days after the organization is established, notify the Secretary (in such manner as the Secretary shall by regulation prescribe) that it is operating as such.

(b)The notice required under subsection (a) shall include the following 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.

(3)A statement of the purpose of the organization.

(c)Not later than 60 days after receipt of such a notice, the Secretary shall send to the organization an acknowledgment of such receipt.

(d)The Secretary may, for reasonable cause, extend the 60-day period described in subsection (a).

(e)The Secretary shall impose a reasonable user fee for submission of the notice under subsection (a).

(f)Upon request by an organization to be treated as an organization described in section 501(c)(4), the Secretary may issue a determination with respect to such treatment. Such request shall be treated for purposes of section 6104 as an application for exemption from taxation under section 501(a).

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Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 114–113, div. Q, title IV, § 405(f), Dec. 18, 2015, 129 Stat. 3120, provided that: “(1) In general.—The

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made by this section [enacting this section and amending section 6033 and 6652 of this title] shall apply to organizations which are described in section 501(c)(4) of the Internal Revenue Code of 1986 and organized after the date of the enactment of this Act [Dec. 18, 2015]. “(2) Certain existing organizations.—In the case of any other organization described in section 501(c)(4) of such Code, the

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made by this section shall apply to such organization only if, on or before the date of the enactment of this Act—“(A) such organization has not applied for a written determination of recognition as an organization described in section 501(c)(4) of such Code, and “(B) such organization has not filed at least one annual return or notice required under subsection (a)(1) or (i) (as the case may be) of section 6033 of such Code. In the case of any organization to which the

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made by this section apply by reason of the preceding sentence, such organization shall submit the notice required by section 506(a) of such Code, as added by this Act, not later than 180 days after the date of the enactment of this Act.” Limitation on Expenditure of User Fees Pub. L. 114–113, div. Q, title IV, § 405(e), Dec. 18, 2015, 129 Stat. 3119, provided that: “Notwithstanding any other provision of law, any fees collected pursuant to section 506(e) of the Internal Revenue Code of 1986, as added by subsection (a), shall not be expended by the Secretary of the Treasury or the Secretary’s delegate unless provided by an appropriations Act.”

§506 Organizations Required to Notify Secretary of Intent to Operate Under 501(c)(4)

Summary

Title 26, §506

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Amendments

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