(Updated 2025) The IRS has released a new form for tax-exempt organizations to use when they request determinations (other than initial exemption applications) about their tax-exempt status. In addition to foundation status issues, organizations will use Form 8940, Request for Miscellaneous Determination, to obtain advance approval of certain activities and exemption from Form 990 filing requirements. Prior to the release of Form 8940, there was no form for requesting such approvals.
The simple one-page form is accompanied by instructions that specify what information needs to be submitted to support each of the nine types of requests that may be submitted. A user fee must accompany the form.
Form 8940 must be used for the following types of requests:
a. Advance approval of certain private foundation set-asides
b. Advance approval of private foundation voter registration activities
c. Advance approval of private foundation scholarship procedures
d. Exemption from Form 990 filing requirements
e. Advance determination that a potential grant or contribution is an unusual grant, excluded from certain public support calculations
f. Change in (or initial determination of) Type of a section 509(a)(3) supporting organization
g. Reclassification of foundation status, including a voluntary request from a public charity for private foundation status, and final public charity status determination for organizations with advance ruling periods that expired prior to June 9, 2008 (presumptive private foundations)
h. Termination of private foundation status under Internal Revenue Code section 507(b)(1)(B) (advance ruling request)
i. Termination of private foundation status under Code section 507(b)(1)(B) (60-month period ended)
When nonprofit leaders seek IRS approval for special tax matters they’re often faced with changing the type of their foundation, skipping the annual filing or seeking a ruling on a brand-new activity, and until fairly recently, there was no easy way to apply for miscellaneous determinations and other approvals. The Caritas Law Group can help you with the form 8940 filing process.
Key Points
- The IRS launched Form 8940 back in 2011 to cut through the red tape of requesting these kinds of determinations.Â
- As of April 2024, if you want to change your foundation’s status, ask for an exemption from annual Form 990 filing, or even request a support status ruling, you must use Form 8940.Â
- Submissions via pay.gov come with a requirement for all necessary documents and the correct fee, to prevent processing delays.Â
Comprehensive Guide to Form 8940 for Tax-Exempt Organizations
This Comprehensive Guide to Form 8940 gives tax-exempt organizations will be your go-to reference as a private foundation, public charity or registered charity and gives you the keys to a hassle-free planning of your requests,pay.gov and trusted IRS.gov resources.
Release and Objectives of Form 8940
Form 8940 became available to the public on August 8, 2011 with the express purpose of clearing the way for tax-exempt organizations, private foundations, and public charities who want a smooth, and reliable system for making specific changes.
The pre-Form 8940 era saw many vague letters, with uncertain outcomes for the organisations, however, the introduction of Form 8940 ensured that, nonprofit organizations can now anticipate an exact route and timeline for seeking relief from filing the annual Form 990, changes in public charity status, change in foundation structure, etc.
Applications for Approval and Exemption Requests
The association of applications with the employer identification number ensures that both parties can easily monitor the file over time. When submitting your request for a tax-exempt status in the United States, using the pay.gov platform will keep your sensitive information, such as your social security number and financial data, in a secure channel.
International applicants, such as Canadian registered charities, can use the same platform to support U.S. tax compliance.
Since each request type has its own required details and attachments, sticking to the consolidated format won’t be beneficial if you don’t follow the instructions. Avoid anticipating a specific user fee, as it could potentially delay your filing.
Impact and Benefits for Tax-Exempt Entities
As of April 2024, tax-exempt entities can submit a one-page request for many IRS determinations and due to its simplicity, but the instructions are precise, this balance between form and instructions permits charities to give the IRS everything it requires, but shields sensitive information and a person’s right to privacy.
Clear-cut methods lead to swifter answers on tax-exempt status renewals and other approvals, and submitting your application through pay.gov gets rid of the hassle of mailing and losing paperwork.
Detailed Analysis of Form 8940 and Associated Instructions
The IRS’s Form 8940 has sections dedicated to different types of requests, each with the aim of plucking out the most important facts the IRS needs to review your application, and now pay.gov takes charge of the submission procedure, allowing you to send your documents securely to the IRS.
Coming heading from Canada, charities can use the same form to file online through pay.gov.
Structure and Contents of the Form with Guidelines
The design of Form 8940 was to make the filing process smoother and more efficient and every section is tailored to a specific task, for example changing the status of a private foundation or being excused from annual filing of Form 990.
The guidelines detail required inclusions for each action, helping ensure complete submissions and enabling charities to align their information effectively for quick reviewer reference.
Required Information for Submission
Each sort of request has its own things you must include, for example, a public charity asking for an exemption from annual Form 990 filing will need to show it meets the IRS requirements and send along any necessary documents. If you leave anything out, it stalls the review and may mean they send you a bunch of questions.
When submitting Form 8940, ensure that you label your attachments so they match the instruction list and only send sensitive information that the IRS asks for, never via email if you’re sending your social security number, and sending a perfectly ordered file gets the IRS through the process much faster.
Application Fees Explained
An application fee is required for every Form 8940 submission, and the IRS won’t process your request for a miscellaneous determination or other approval until this fee is paid, you’ll find the fee for each request type on the instructions. You can pay the fee through pay.gov or an accepted alternative and send proof of payment with your filing when necessary.
The same payment rules apply to public charities adjusting their tax-exempt status, private foundations who are seeking advance approval and government organisations asking for an exemption, and it’s here that Form 8940 kicks in.
Specific Requests Facilitated by Form 8940
Coming straight from the instructions, Form 8940 powers a suite of high-impact approvals that affect the day-to-day functioning of an organisation. If you’re not sure how to navigate pay.gov, or what a ruling could mean for your public charity status, the summaries in Form 8940 should be able to sort you out.
Pre-Approval for Private Foundation Activities
Private foundations can ask for IRS pre-approval of their scholarship schemes, grant set-asides and voter registration plans. The pre-approval verifies that their approach is watertight and in accordance with the rules, thereby reducing the risk of costly mistakes and financial corrections later.
Submit a clear plan that includes the IRS standards for oversight, picking and record-keeping.
As an example, a foundation planning to set aside funds for a building project should show its timeline, budget, and the consequences of immediate spending, to kickstart a programme and save your tax benefits.
Exemptions from Annual Form 990 Filing Obligations
Government units and religious groups don’t always have to file the yearly Form 990, but to be eligible, they have to meet the IRS’s very specific rules, which is where Form 8940 comes into the picture, and gives you a structured process to request that exemption and receive the documentation you can rely on.
Filing through the internet using pay.gov eliminates back-and-forth between you and the IRS, takes away one of your yearly reporting chores, and lessens the chance of sensitive information appearing in your public filings.
The IRS will thoroughly check your request, so be precise and throw in all the supporting documentation the instructions ask for.
Changes in Foundation Classification
When filing Form 8940, you can request a change in your foundation’s classification, such as shifting from a public charity to a private foundation, or asking for a final public charity determination for presumptive private foundations whose advance ruling period ran out prior to June 9, 2008.
You can also seek an initial determination as a supporting organization under Section 509(a)(3), and apply to have a large donation considered as a rare grant, enabling you to hold onto your public support.
Procedures for Ending Private Foundation Status
Form 8940 is used to initiate the process of ending private foundation status for organizations, and under Internal Revenue Code Section 507(b)(1)(B) you can ask for a forecast of termination. The form lays out the files the IRS expects.
There have been cases where a 60-month closure and a last ruling are necessary, and you’ll need to provide the documents that show you’ve met the prerequisites over that period, filing through pay.gov can add order and simplicity to an otherwise intricate procedure.
Caritas Law Group can be called upon to provide expertise and guidance on Form 8940, and more general issues of nonprofit compliance, courtesy of attorney Ellis Carter.
Caritas Law Group is essentially at 602-456-0071 or info@caritaslawgroup.com if you need any assistance. Caritas Law Group works nationwide with its clients, when requesting IRS approval for public charities and private foundations. Coming dashing off the heels of a meeting, you’ll receive crystal clear advice tailored to your situation and timeline.
Conclusion
Well-known Form 8940 is basically a one-stop-shop for tax-exempt organisations to ask the IRS for a number of things.
Such as advance approval, exemptions and dealing with a request for a ruling on a miscellaneous matter. Practical guidelines and set fees let you plan out the whole thing, sending your application to pay.gov ensures your sensitive information is safe and gets processed quickly.
If you’re struggling with your application, Ellis Carter at Caritas Law Group is a highly respected resource for non-profit organisations who require some help with strategy and filing support, and will help ensure your tax-exempt status stays accurate and your cause stays on track.
This article is for general information only, isn’t legal advice, and won’t cut it as a substitute for consulting with a qualified attorney who has an in-depth understanding of your specific situation.
FAQs
1. What is the new Form 8940 for IRS approval requests?
Form 8940, IRS Approval Requests, is a tool that allows non-profits, such as charities and foundations, to ask the IRS for specific favours, like changing their tax-exempt status, or getting out of filing penalties. This form simplifies the request process and gets everything in order.
2. Who should use Form 8940?
Non-profit groups, foundations and other charities need to use this form when they’re asking for something that’s outside the regular filing routine. Coming from a change of foundation type to a late filing pardon, this is the right form.
3. How does Form 8940 help simplify nonprofit law?
The form collects all the necessary info, walks the user through the application with clear, direct questions, and cuts down the chance of mistakes and speeds up the review time by the IRS.
4. Where can I find more guidance on using Form 8940?
If you need a hand filling it out, check out the Charity Lawyer Blog, for tips, tricks and news about non-profit law, written in plain English.
Ellis Carter is a nonprofit lawyer with Caritas Law Group, PC. To contact Ellis, call 602-456-0071 or email us at info@caritaslawgroup.com.