rp-21-08.pdf

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26 CFR 601.201: Rulings and determination letters.

Rev. Proc. 2021-8

SECTION 1. PURPOSE
This revenue procedure modifies Revenue Procedure 2021-5, 2021-1 I.R.B. 250, by
updating the procedures for Exempt Organizations determination letters with respect to
the electronically submitted Form 1024-A, Application for Recognition of Exemption
Under Section 501(c)(4) of the Internal Revenue Code, which is the application used to
apply for recognition of exemption as an entity described in § 501(c)(4). The
modifications to Rev. Proc. 2021-5 made by this revenue procedure provide that the
electronic submission process is the exclusive means of submitting a completed
Form 1024-A, except for submissions eligible for the 90-day transition relief provided in
section 4 of this revenue procedure.
SECTION 2. CHANGED SUBMISSION PROCESS
The IRS has revised and updated Form 1024-A and provided for it to be
electronically submitted at www.pay.gov. The electronic submission process for Form
1024-A replaces the paper submission process for Form 1024-A after January 5, 2021,
subject to the transition relief provided in section 4 of this revenue procedure. Section 3

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of this revenue procedure modifies Rev. Proc. 2021-5 to set forth procedures for issuing
determination letters in response to electronically submitted Form 1024-A applications.
Unless otherwise modified in this revenue procedure, the provisions of Rev. Proc. 2021-
5 continue to apply.
SECTION 3. MODIFICATIONS TO REVENUE PROCEDURE 2021-5
.01 Section 4.01 of Rev. Proc. 2021-5 is modified to read as follows:
.01 This section explains the general instructions for requesting determination
letters. However, certain procedures do not apply to requests submitted on Form 1023,
Application for Recognition of Exemption Under Section 501(c)(3) of the Internal
Revenue Code, Form 1023-EZ, Streamlined Application for Recognition of Exemption
Under Section 501(c)(3) of the Internal Revenue Code, or Form 1024-A, Application for
Recognition of Exemption Under Section 501(c)(4) of the Internal Revenue Code, as
indicated in this revenue procedure or in the forms and their instructions. In addition to
these general instructions, specific procedures apply to requests submitted by letter (as
described in section 5), applications for recognition of exemption from Federal income
tax under § 501 or § 521 (as described in section 6), and to requests for determinations
submitted on Form 8940, Request for Miscellaneous Determination (as described in
section 7).
.02 Paragraph (4) of section 4.02 of Rev. Proc. 2021-5 is modified to read as follows:

(4) Form 1024-A application. An organization seeking a determination letter from
the Service recognizing tax-exempt status under § 501(c)(4) must electronically submit
a completed Form 1024-A at www.pay.gov. In the case of an organization that provides
credit counseling services and seeks recognition of exemption under § 501(c)(4), see §

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501(q).
Section 501(c)(4) organizations may choose to seek a determination letter recognizing
tax-exempt status under § 501(c)(4) by filing Form 1024-A, but are not required to do so
except in certain cases (see, for example, § 6033(j)(2) regarding failures to file annual
information returns or annual electronic notifications required under § 6033(a) or (i)).
Submission of Form 1024-A does not relieve an organization of the requirement to
submit Form 8976, Notice of Intent to Operate Under Section 501(c)(4). For additional
information about the electronic submission process, refer to Form 1024-A and its
Instructions.
.03 Paragraph 4.04(3) of Rev. Proc. 2021-5 is modified to read as follows:
(3) Individual or representative authorized to sign Form 1024-A. In the case
of a request for a determination letter made by filing Form 1024-A, an officer, a director,
a trustee, or other official who is authorized to sign for the organization
must sign the
application.
The signature of a representative authorized by a power of attorney who is
not an officer, director, trustee, or other official of the organization will not satisfy the
signature requirement for Form 1024-A.
See the instructions to the Form 1024-A for
more information on who may sign the application on behalf of an organization.
.04 The first paragraph of section 4.09(1) of Rev. Proc. 2021-5 is modified to read as
follows:
(1) Procedures for requesting expedited handling. Except for a request on
the electronically submitted Form 1023 or Form 1024-A, the request for expedited
handling must be made in writing, preferably in a separate letter sent with, or soon after
filing, the request for the determination letter. If the request is not made in a separate

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letter, then the letter in which the determination letter request is made should say, at the
top of the first page: "Expedited Handling Is Requested. See page ___ of this
letter."
In the case of the electronically submitted Form 1023 or Form 1024-A, a request for
expedited handling must be indicated on the form and a supporting written statement
must be submitted as an attachment with the completed application.
.05 Section 6.04 of Rev. Proc. 2021-5 is modified to read as follows:
.04 An organization applying for recognition of exemption must attach a
completed Form 8718, User Fee for Exempt Organization Determination Letter
Request, to its application, unless the organization is submitting Form 1023, Form 1023-
EZ, or Form 1024-A. Form 8718 is an attachment related to user fees that is not, itself,
a determination letter application.
.06 Section 6.06(1)(a) of Rev. Proc. 2021-5 is modified to read as follows:
(1) A completed application (other than a Form 1023-EZ), including a letter
application, is one that:
(a) is signed or, in the case of a Form 1023 or Form 1024-A, is electronically
signed by an authorized individual under penalties of perjury (see sections 4.04 and
4.06 of this revenue procedure);
.07 Section 6.06(1)(c) of Rev. Proc. 2021-5 is modified to read as follows:
(c) (i) for organizations other than those described in § 501(c)(3) or § 501(c)(4),
includes a statement of receipts and expenditures and a balance sheet for the current
year and the three preceding years (or the years the organization was in existence, if
less than four years), and if the organization has not yet commenced operations or has

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not completed one accounting period, a proposed budget for two full accounting periods
and a current statement of assets and liabilities;
(ii) for organizations described in § 501(c)(3) or § 501(c)(4), see Form 1023 and
Instructions for Form 1023 or Form 1024-A and Instructions for Form 1024-A,
respectively.
.08 Paragraph (2) of section 6.08 of Rev. Proc. 2021-5 is modified to read as follows:
(2) When an application is not submitted within 27 months of formation. An
organization that otherwise meets the requirements for tax-exempt status and the
issuance of a determination letter but does not meet the requirements for recognition
from date of formation will be recognized from the postmark date of its application or the
submission date of its Form 1023, Form 1023-EZ, or Form 1024-A, as applicable.
.09 Paragraph (1) of section 14.06 of Rev. Proc. 2021-5 is modified to read as
follows:
(1) Payment of user fees for applications of recognition of exemption on
Form 1023, Form 1023-EZ, or Form 1024-A. User fees for applications for recognition
of exemption on Form 1023, Form 1023-EZ, or Form 1024-A must be paid through
www.pay.gov.
.10 Section 14.07 of Rev. Proc. 2021-5 is modified to read as follows:
.07 Form 8718 is intended to be used as an attachment to applications other than
Form 1023, Form 1023-EZ, or Form 1024-A for the attachment of the applicable user
fee check.
.11 Section 15.01(1)(a) of Rev. Proc. 2021-5 is modified to read as follows:
(1) The following types of requests and applications handled by the EO

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Determinations Office should be sent to the Internal Revenue Service Center, at the
address in section 15.01(2):
(a) applications for recognition of exemption on Form 1024 and Form 1028;
.12 Section 15.02 of Rev. Proc. 2021-5 is modified to read as follows:
.02 Applications for recognition of exemption on Form 1023, Form 1023-EZ, and
Form 1024-A are handled by the EO Determinations Office but must be submitted
electronically online at www.pay.gov. Paper submissions of Form 1023, Form 1023-EZ,
and Form 1024-A will not be accepted.
SECTION 4. TRANSITION RELIEF
.01 Except as provided in section 4.02, an organization seeking recognition of tax-
exempt status under § 501(c)(4) using Form 1024-A must electronically submit the form
and user fee online at www.pay.gov.
.02 The Internal Revenue Service will accept for processing a completed paper Form
1024-A accompanied by the correct user fee, as described in Rev. Proc. 2021-5,
without applying the modifications of this revenue procedure, if the submission of the
Form 1024-A is postmarked on or before the date that is 90 days after the effective date
of this revenue procedure.
SECTION 5. EFFECT ON OTHER DOCUMENTS
Rev. Proc. 2021-5 is modified.
SECTION 6. EFFECTIVE DATE
This revenue procedure is effective January 5, 2021, the date this revenue
procedure was announced by news release.
SECTION 7. DRAFTING INFORMATION

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The principal author of this revenue procedure is Patrick Sternal of the Office of
Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment
Taxes). For further information regarding this revenue procedure contact Mr. Sternal at
(202) 317-5800 (not a toll-free call).