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IRS Provides Procedures for Supporting Organizations to Change Public Charity Classification

Reprinted from Exempt Organizations Advisory

On August 10, the IRS published Announcement 2009-62 which provides procedures for supporting organizations to request a change in their public charity classification. In response to the Pension Protection Act of 2006 which changed the tax laws with respect to supporting organizations described in section 509(a)(3), the IRS published Announcement 2006-93 to provide procedures for supporting organizations to request reclassification as public charities under section 509(a)(1) or section 509(a)(2). [The August 10] announcement supersedes Announcement 2006-93 and provides procedures that are consistent with the redesigned Form 990 and temporary regulations issued on Sept. 9, 2008 which changed the public support computation period and the method of accounting for computing public support. The announcement also eliminates the expedited process for these requests unless the request meets the general criteria for expedited determinations found in Rev. Proc. 2009-4, 2009-1 I.R.B. 118. Requests previously submitted for reclassification under the earlier Announcement will be processed under those procedures and do not need to be resubmitted.

Suzanne Ross McDowell and Catherine W. Wilkinson, Steptoe & Johnson LLP
© 2009, Steptoe & Johnson LLP, 1330 Connecticut Ave., N.W., Washington, D.C. 20036. All rights reserved. Reprinted from Exempt Organizations Advisory, August 11, 2009.

Suzanne Ross McDowell is a partner in the Washington, D.C., office, of Steptoe & Johnson LLC, where she focuses on the law of tax-exempt organizations. Catherine W. Wilkinson is a certified public accountant practicing in the firm's Tax group. Exempt Organizations Advisory summarizes legal developments of interest to Steptoe & Johnson's exempt organization clients and friends of the firm. It is published on a periodic basis as developments warrant.

Topics: Policy