Annual revenue procedure changes for exempt orgs | KPMG Global
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Annual revenue procedures for 2018, changes for exempt organizations

IRS annual revenue procedures

The first edition of the Internal Revenue Bulletin for 2018 (IRB 2018-1, dated January 2, 2018) provides six of the “annual revenue procedures” for 2018.


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Changes from the 2017 versions of the annual revenue procedures of interest for exempt organizations reflect the following (found in Rev. Proc. 2018-5):

  • The IRS will not issue a determination letter when an organization currently recognized as exempt under section 501(c) (other than a government entity) requests a determination to relinquish its exempt status under section 501(a).
  • Organizations applying for retroactive reinstatement of tax-exempt status under section 4 of Rev. Proc. 2014–11 (streamlined reinstatement) after being automatically revoked and that are seeking a foundation classification that is different from the classification they had at the time of revocation cannot use Form 1023-EZ.
  • The IRS changed certain exempt organization user fees. All section 501 applications (other than Form 1023-EZ applications) are subject to a flat user fee of $600. Group exemption letters are subject to a $2,000 user fee.

Read IRB 2018-1 [PDF 936 KB] which provides, in 280 pages, the following six annual revenue procedures:

  • Rev. Proc. 2018-1 - Letter rulings, information letters, and determination letters
  • Rev. Proc. 2018-2 - Technical advice
  • Rev. Proc. 2018-3 - Areas in which rulings will not be issued (domestic area)
  • Rev. Proc. 2018-4 - Determination letters and letter rulings (tax-exempt and government entities, employee plans)
  • Rev. Proc. 2018-5 - Determination letters (exempt organizations)
  • Rev. Proc. 2018-7 - Areas in which rulings will not be issued (international area) 


For more information, contact a tax professional with KPMG’s Washington National Tax practice:

Preston Quesenberry | +1 202 533 3985 |

Randall Thomas | +1 202 533 3786 |

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