Exempt Organizations Can Now Submit Form 8940 Online Beginning April 3, 2023.

The Internal Revenue Service (IRS) has announced a update to Form 8940, Request for Miscellaneous Determination, which is used by exempt organizations to make random purpose requests. The IRS has updated the form and its instructions to allow electronic filing, with the electronic version of the form becoming available from April 3, 2023.

The IRS will provide a 90-day grace period during which it will accept paper versions of the Form 8940. However, it has mandated that after this grace period, electronic submission of the Form 8940 will be mandatory. The IRS aims to make the process of completing the form easier and reduce errors by moving to electronic filing. Furthermore, electronic filing is expected to shorten processing times, allowing the IRS to respond to applicants more quickly.

The revised Form 8940 now covers a range of requests, in addition to miscellaneous ones. The revised Form 8940 allows government entities to request voluntary termination of exempt status under section 501(c)(3). In addition, Canadian registered charities can use the updated form to request inclusion in the Tax Exempt Organization Search (TEOS) database, which provides a list of organizations eligible to receive tax-deductible charitable contributions (Pub. 78 data). The updated form also enables Canadian registered charities to request a determination on public charity classification. The updated form also enables private foundations to give notice of their intent to terminate private foundation status under section 507(b)(1)(B).

The required user fees for submitting Form 8940 vary depending on the type of random request. For 2023, the user fees remain at the amounts set out in Revenue Procedure 2023-5. Applicants must pay the fee through Pay.gov when submitting the form. You can make a payment directly from a bank account or by credit or debit card.
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