Many Organizations Are Not Notifying the Internal Revenue Service of Their Intent to Operate Under Internal Revenue Code Section 501(c)(4) As Required by Law.

The Director, EO function, should update EO function examination procedures to include ensuring that I.R.C. Section 501(c)(4) organizations have met their Form 8976 notification requirement and assessing penalties against responsible officials when appropriate.

The Director, EO function, should determine if the I.R.C. Section 501(c)(4) organizations that filed untimely Forms 8976 prior to February 28, 2019, had reasonable cause for filing untimely or if assessing delinquency penalties is warranted.

The Director, EO function, should update procedures to ensure that Determinations Unit tax examiners do not include conflicting information in notices when the filer is informed about why a Form 8976 was rejected, e.g., develop additional standard paragraphs that would eliminate possible confusion.