[Federal Register Volume 79, Number 127 (Wednesday, July 2, 2014)]
[Proposed Rules]
[Pages 37697-37698]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-15624]



[[Page 37697]]

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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-110948-14]
RIN 1545-BM06


Guidelines for the Streamlined Process of Applying for 
Recognition of Section 501(c)(3) Status

AGENCY: Internal Revenue Service (IRS), Treasury.

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

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SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the IRS is issuing regulations that provide guidance 
to organizations that seek recognition of tax-exempt status under 
section 501(c)(3) of the Internal Revenue Code. The final and temporary 
regulations amend current regulations to allow the Commissioner of 
Internal Revenue to adopt a streamlined application process that 
certain organizations may use to apply for recognition of tax-exempt 
status under section 501(c)(3). 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 
September 30, 2014.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-110948-14), Room 
5205, Internal Revenue Service, P.O. 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-
110948-14), 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-110948-14).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
James R. Martin or Robin Ehrenberg at (202) 317-5800; concerning 
submission of comments and request for hearing, Oluwafunmilayo Taylor 
at (202) 317-6901 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background and Explanation of Provisions

    Temporary regulations in the Rules and Regulations section of this 
issue of the Federal Register amend the existing regulations under 
sections 501 and 508 to allow for an additional form of application to 
be used to satisfy the notice requirement under section 508(a). The 
text of those temporary regulations also serves as the text of these 
proposed regulations. The preamble to the temporary regulations 
explains the amendments.

Special Analyses

    It has been determined that this notice of proposed rulemaking is 
not a significant regulatory action as defined in Executive Order 
12866, as supplemented 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 this 
rule will not have a significant economic impact on a substantial 
number of small entities. Although this rule may affect a substantial 
number of small entities that choose to use the new form that 
streamlines the application process that eligible organizations may use 
to apply for recognition of tax-exempt status under section 501(c)(3), 
we intend for this rule to reduce the economic impact on small 
entities. This rule merely provides guidance about the streamlined form 
of application available to satisfy the notice requirement under 
Section 508(a). Therefore, a Regulatory Flexibility Analysis under the 
Regulatory Flexibility Act (5 U.S.C. Chapter 6) is not required.

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 authors of these regulations are James R. Martin and 
Robin Ehrenberg, Office of Associate Chief Counsel (Tax Exempt and 
Government Entities). However, other personnel from the IRS and the 
Treasury Department participated in their development.

List of Subjects in 26 CFR Part 1

    Income taxes, Nonprofit organizations, Foundations, 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

0
Paragraph 1. The authority citation for part 1 continues to read in 
part as follows:

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

0
Par. 2. Section 1.501(a)-1 is amended by:
0
1. Revising paragraph (a)(2).
0
2. Revising paragraph (b)(1) and (3).
0
3. Adding paragraph (f).
    The revisions and addition read as follows:


Sec.  1.501(a)-1  Exemption from taxation.

    (a) * * *
    (2) [The text of the proposed amendment to Sec.  1.501(a)-1(a)(2) 
is the same as the text for Sec.  1.501(a)-1T(a)(2) published elsewhere 
in this issue of the Federal Register].
* * * * *
    (b)(1) [The text of the proposed amendment to Sec.  1.501(a)-
1(b)(1) is the same as the text for Sec.  1.501(a)-1T(b)(1) published 
elsewhere in this issue of the Federal Register].
* * * * *
    (3) [The text of the proposed amendment to Sec.  1.501(a)-1(b)(3) 
is the same as the text for Sec.  1.501(a)-1T(b)(3) published elsewhere 
in this issue of the Federal Register].
* * * * *
    (f) [The text of the proposed amendment to Sec.  1.501(a)-1(f) is 
the same as the text for Sec.  1.501(a)-1T(f) published elsewhere in 
this issue of the Federal Register].
0
Par. 3. Section 1.501(c)(3)-1 is amended by:
0
1. Revising paragraphs (b)(1)(v) and (b)(6).
0
2. Adding paragraph (h).
    The revisions and addition read as follows:


Sec.  1.501(c)(3)-1  Organizations organized and operated for 
religious, charitable, scientific, testing for public safety, literary, 
or educational purposes, or for the prevention of cruelty to children 
or animals.

* * * * *
    (b) * * * (1) * * *
    (v) [The text of proposed amendments to Sec.  1.501(c)(3)-
1(b)(1)(v) is the same as

[[Page 37698]]

the text for Sec.  1.501(c)(3)-1T(b)(1)(v) published elsewhere in this 
issue of the Federal Register].
* * * * *
    (6) [The text of proposed amendments to Sec.  1.501(c)(3)-1(b)(6) 
is the same as the text for Sec.  1.501(c)(3)-1T(b)(6) published 
elsewhere in this issue of the Federal Register].
* * * * *
    (h) [The text of proposed amendments to Sec.  1.501(c)(3)-1(h) is 
the same as the text for Sec.  1.501(c)(3)-1T(h) published elsewhere in 
this issue of the Federal Register].
0
Par. 4. Section 1.508-1 is amended by:
0
1. Revising paragraphs (a)(2)(i) and (ii).
0
2. Revising paragraphs (b)(2)(iv) and (v).
0
3. Adding paragraph (c).
    The revisions and addition read as follows:


Sec.  1.508-1  Notices.

    (a) * * *
    (2)(i) [The text of proposed amendments to Sec.  1.508-1(a)(2)(i) 
is the same as the text for Sec.  1.508-1T(a)(2)(i) published elsewhere 
in this issue of the Federal Register].
    (ii) [The text of proposed amendments to Sec.  1.508-1(a)(2)(ii) is 
the same as the text for Sec.  1.508-1T(a)(2)(ii) published elsewhere 
in this issue of the Federal Register].
* * * * *
    (b) * * *
    (2) * * *
    (iv) [The text of proposed amendments to Sec.  1.508-1(b)(2)(iv) is 
the same as the text for Sec.  1.508-1T(b)(2)(iv) published elsewhere 
in this issue of the Federal Register].
    (v) [The text of proposed amendments to Sec.  1.508-1(b)(2)(v) is 
the same as the text for Sec.  1.508-1T(b)(2)(v) published elsewhere in 
this issue of the Federal Register].
* * * * *
    (c) [The text of proposed amendments to Sec.  1.508-1(c) is the 
same as the text for Sec.  1.508-1T(c) published elsewhere in this 
issue of the Federal Register].

John Dalrymple,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2014-15624 Filed 7-1-14; 8:45 am]
BILLING CODE 4830-01-P