On April 8, 1999, the IRS issued T.D. 8818, amending the regulations implementing IRC section 6104 of the Code. The amendments generally require tax-exempt organizations (other than private foundations) to provide copies of certain tax documents to requesting individuals; these tax documents are usually to be provided immediately in the case of in-person requests and within 30 days in the case of written requests. The tax-exempt organization may charge a reasonable copying fee plus actual postage, if any. These new disclosure requirements are in addition to the requirement that tax-exempt organizations must make their tax-documents available for public inspection.

1. What organizations are "tax-exempt organizations" for the purposes of the new law?
2. What tax documents are affected by the new regulations?
3. What disclosure laws apply to private foundations?
4. What does the new law require the tax-exempt organization to do?
5. What does the IRS consider to be a reasonable charge for copying costs?
6. Are tax-exempt organizations required to disclose the names or addresses of its contributors?
7. Are organizations that are not required to provide copies of their exemption applications also exempt from the requirement to provide copies of the annual returns to requesters?
8. Is there a convenient exception to the requirement to provide copies?
9. If an organization makes it documents "widely available" must it make the documents available for public inspection?
10. What are the penalties for failure to comply with the disclosure requirements, and who must pay them?
11. What was the old law and to what extent does it still apply?
12. If a request for copies is not fulfilled, to whom may the requester complain?
13. How can one get a copy of an organization's exemption application or annual information return from the IRS?

What organizations are "tax-exempt organizations" for the purposes of the new law?

The new law affects organizations exempt from federal income tax under § 501(a) and described in § 501(c) (other than private foundations) and § 501(d). Examples of the type of tax-exempt organization to which the new law applies includes: public charities, schools, labor organizations, business leagues, fraternities, social clubs, veterans organizations, and voluntary employees' beneficiary associations. See Types of Organizations for more information about these organizations.

This new law does not apply to private foundations nor to certain split-interest trusts. Additionally, the law does not affect those organizations that are exempt under other provisions of the Code, for example: § 521, farmers' cooperatives; § 528, homeowners' associations and § 529, qualified state tuition programs.

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What tax documents are affected by the new regulations?

The affected tax documents are the exempt organization's exemption application and its three most recently filed annual information returns. An exemption application includes the Form 1023 (for organizations recognized exempt under § 501(c)(3)), Form 1024 (for organizations recognized exempt under most other paragraphs of § 501(c)), or the letter submitted under the paragraphs for which no form is prescribed, together with supporting documents and any letter or document issued by the IRS concerning the application.

The information returns are the Form 990 , Return of Organization Exempt From Income Tax, Form 990-EZ , Short Form Return of Organization Exempt From Income Tax, Form 990-PF, Return of Private Foundation, Form 990-BL , Information and Initial Excise Tax Return for Black Lung Benefit Trusts and Certain Related Persons, and the Form 1065 , U.S. Partnership Return of Income. The regulations do not require an exempt organization to disclose the Form 990-T , Exempt Organization Business Income Tax Return, nor the Schedule K-1 of the Form 1065.

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What disclosure laws apply to private foundations?

Private foundation returns (Form 990-PF) filed on or after March 13, 2000, are subject to the same disclosure rules as apply to other exempt organizations.

A private foundation must also make its exemption application, supporting documents, and letters sent from the IRS available for public inspection during regular business hours at the private foundation's principal office; and, if the organization regularly maintains one or more regional or district offices having three or more employees, then the application must be made available for public inspection at each of these offices also.

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What does the new law require the tax-exempt organization to do?

In response to a written or in-person request by an individual at the principal office of the organization, and if such organization regularly maintains one or more regional or district offices having three or more employees, at each such regional or district office, a copy of the covered tax documents shall be provided to the requester. If the request for copies is made in person, the request will generally be honored on the day of the request; if the request is written, then the organization usually has thirty days to respond. (A request that is faxed, e-mailed or sent by private courier is considered a written request.)

The organization may want to charge reasonable copying costs and the actual cost of postage before providing the copies. The law permits this. But, the organization must provide timely notice of the approximate cost and acceptable form of payment, which must include cash and money order (in the case of an in-person request) and certified check, money order, and personal check or credit card, in the case of a written request.

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What does the IRS consider to be a reasonable charge for copying costs?

A tax-exempt organization may charge a reasonable fee for providing copies, which is defined as the amount charged by the IRS for providing copies. Currently, that amount is $1.00 for the first page and .15 for each subsequent page. An organization may require payment before it provides copies, but must advise requesters of the total cost of the copies requested if adequate payment is not included with the request.

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Are tax-exempt organizations required to disclose the names or addresses of its contributors?

No. The new regulations, like the old regulations, specifically exclude the name and address of any contributor to the organization from the definition of discloseable documents.

However, due to a subsequent statutory change, that exclusion does not apply to political organizations described in section 527. Certain tax-exempt political organizations are required to report the name & address, and the occupation and employer (if an individual), of any person that contributes in the aggregate $200 or more in a calendar year on the Schedule A of Form 8872. Tax-exempt political organizations may also be required to file Form 990, including Schedule B. Political organizations are required to make both of these forms available to the public, including the contributor information.

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Are organizations that are not required to provide copies of their exemption applications also exempt from the requirement to provide copies of the annual returns to requesters?

Some organizations, whose exemption application was filed before July 15, 1987, and which lacked the exemption application on July 15, 1987, need not make a copy of the exemption application available. The requirement to provide a copy of the annual information return is separate from the requirement to provide of the exemption application. Tax-exempt organizations are required to provide copies of the annual information returns even where they are not required to provide copies of the exemption application.

If an organization filed its exemption application after July 15, 1987, but is unable to find a copy, the organization may contact TE/GE Division, Customer Service to request a copy of the application.

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Is there a convenient exception to the requirement to provide copies?

A tax-exempt organization does not have to comply with individual requests for copies if it makes the documents widely available as described in the regulations. This can be done by posting the documents on a readily accessible World Wide Web site, either its own or on a database of exempt organization documents maintained by another organization, provided the documents are posted in a format that meets the criteria set forth in the regulations. In general, the format must exactly reproduce the image of the original document and allow an Internet user to access, download, view and print the posted document without the payment of a fee. One format that currently meets the criteria is Portable Document Format (.pdf). An organization that makes its documents widely available in this manner, must advise requesters how the forms may be accessed.

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If an organization makes it documents "widely available" must it make the documents available for public inspection?

Yes. Making documents widely available satisfies the requirement to provide copies of the documents. This requirement is separate from the requirement to make the documents available for public inspection. There is no exception (similar to the widely available exception) from the requirement to make documents available for public inspection.

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What are the penalties for failure to comply with the disclosure requirements, and who must pay them?

Responsible persons of a tax-exempt organization who fail to provide the documents as required may be subject to a penalty of $20 per day for as long as the failure continues. There is a maximum penalty of $10,000 for each failure to provide a copy of an annual information return. There is no maximum penalty for the failure to provide a copy of an exemption application.

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What was the old law and to what extent does it still apply?

The old law had been in effect since October of 1987 and required tax-exempt organizations (including private foundations) to make the three most recently filed annual information returns available for public inspection during regular business hours at the principal office of the organization and, if such organization regularly maintains one or more regional or district offices having three or more employees, at such regional or district office.

The old law also required that tax-exempt organizations (other than private foundations) make the exemption application materials available for public inspection during regular business hours at the principal office of the organization and, if the organization regularly maintains one or more regional or district offices where three more employees, at each such regional or district office.

In both cases, the old law still applies. The new law merely supplements this law.

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If a request for copies is not fulfilled, to whom may the requester complain?

The complaint should be addressed to the TE/GE Division, Customer Service.

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How can one get a copy of an organization's exemption application or annual information return from the IRS?

To request a copy of either the exemption application or the annual information return, submit Form 4506-A, Request for Public Inspection or Copy of Exempt Organization IRS Form.  Mail the form to the applicable address listed below:

You may also purchase copies of scanned Forms 990, 990-EZ for IRC section 501(c)(3) organizations, and all 990-PF returns on CD-Rom from the Ogden Submission Processing Center.

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