August 9, 2011
Authored by: Keith Kehrer
The IRS has released Form 8940, Request for Miscellaneous Determination, that tax-exempt organizations will use to request certain determinations about their tax-exempt status. In addition to foundation status issues, organizations will use Form 8940 to obtain advance approval of certain activities and exemption from Form 990 filing requirements.
Although Form 8940 is a step in the right direction, it does not go far enough. As I indicated in my prior post, there currenly is no process for a tax-exempt organization to seek IRS approval of expanded or changed activities. Form 8940 should be revised to include a new Type of Request, “Notice of Material Change in Activities,” that will allow tax-exempt organizations, in their sole discretion, to file a notice of such changes and request an updated determination letter that such activities do not jeopardize the charity’s exempt status. We will continue to promote this concept and keep you posted of new developments.