IRS annual revenue procedures for 2024

Internal Revenue Bulletin 2024-1 [PDF 2.9 MB] (312 pages) provides six of the “annual revenue procedures” for 2024.

• Rev. Proc. 2024-1 - Letter rulings, information letters, and determination letters
• Rev. Proc. 2024-2 - Technical advice
• Rev. Proc. 2024-3 - Areas in which rulings will not be issued (domestic area)
• Rev. Proc. 2024-4 - Determination letters and letter rulings (tax-exempt and government entities, employee plans)
• Rev. Proc. 2024-5 - Determination letters (exempt organizations)
• Rev. Proc. 2024-7 - Areas in which rulings will not be issued (international area) 

Rev. Proc. 2024-5

The IRS today issued a transmittal message explaining that section 3.01(1) of Rev. Proc. 2024-5 outlines a new process for organizations currently recognized under section 501(c)(3) that want to be recognized under a different paragraph of section 501(c).

To be eligible, the organization must have distributed its assets to another section 501(c)(3) organization or government entity and meet the requirements for the new section 501(c) status. The new status will be effective from the date of the new application.

Organizations must provide details of their asset distribution and agree to the submission date for recognition under the new paragraph of section 501(c). This information can be included in the organization’s Form 1024, Application for Recognition of Exemption Under Section 501(a), or Form 1024-A, Application for Recognition of Exemption Under Section 501(c)(4).

This procedure also applies to organizations that have been automatically revoked under section 6033(j) and are seeking retroactive reinstatement under a different paragraph of section 501(c).

Section 501(c)(3) organizations seeking to be recognized as described in section 501(c)(4) must file Form 8976, Notice of Intent to Operate Under Section 501(c)(4), within 60 days of formation, similar to new section 501(c)(4) organizations. If they submit Form 8976 within 60 days of seeking the new status, they may be eligible for reasonable cause relief from any penalty for late filing of Form 8976.

For more information, contact your usual KPMG tax professional or one of the following Washington National Tax professionals:

Ruth Madrigal | ruthmadrigal@kpmg.com

Preston Quesenberry | pquesenberry@kpmg.com