Louis E. Michelson, A Professional Corporation

When must a tax-exempt organization report changes to the IRS.  The events that trigger a reporting requirement to the IRS are changes in an organization’s name or address and structural and operational changes.

If an organization files an annual return, it must report the changes on its return. If it is not required to file annually, it reports the changes to the EO Determinations Office. The EO Determinations Office can issue an updated determination letter showing an organization’s new name and address and affirming that it is still exempt.

An organization may request a determination letter regarding the effect of certain changes on its tax exempt status or public charity status.  For example, a determination letter will be issued to classify or reclassify an organization as a public charity or a private foundation.  An organization may also request a determination letter to determine whether an organization is exempt from filing annual information returns in certain situations.

If an organization is unsure about whether a proposed change in its purposes or activities is consistent with its status as an exempt organization or as a public charity, it may want to request a private letter ruling .  The IRS will issue a private letter or the organization on the tax consequence of proposed changes to an organization’s purposes or activities.  It is a good idea to think though pros and cons of requesting a private letter ruling.

When must a tax-exempt organization report changes to the IRS?  The events that trigger a reporting requirement to the IRS are changes in an organization’s name or address and structural and operational changes.

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If an organization files an annual return, it must report the changes on its return. If it is not required to file annually, it reports the changes to the EO Determinations Office. The EO Determinations Office can issue an updated determination letter showing an organization’s new name and address and affirming that it is still exempt.

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An organization may request a determination letter regarding the effect of certain changes on its tax exempt status or public charity status.  For example, a determination letter will be issued to classify or reclassify an organization as a public charity or a private foundation.  An organization may also request a determination letter to determine whether an organization is exempt from filing annual information returns in certain situations.

If an organization is unsure about whether a proposed change in its purposes or activities is consistent with its status as an exempt organization or as a public charity, it may want to request a private letter ruling .  The IRS will issue a private letter or the organization on the tax consequence of proposed changes to an organization’s purposes or activities.  It is a good idea to think though pros and cons of requesting a private letter ruling.