SECTION 1. PURPOSE AND

OVERVIEW

This Notice provides interim guidance regarding section 405 of the Protecting

Americans from Tax Hikes Act of 2015 (the PATH Act), enacted on December 18, 2015, as part of the Consolidated Appropriations Act, 2016 (Pub. L. 114–113). Specifically, this Notice addresses the due date of notifications required to be submitted under new section 506 of the Internal Revenue Code (Code) by social welfare organizations described in section 501(c)(4) and the separate process by which an organization may, at its option, request a determination that it qualifies for section 501(c)(4) tax-exempt status.

The section 506 notification requirement applies to social welfare organizations described in section 501(c)(4) that are established after December 18, 2015, and to certain organizations existing on that date. The Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) intend to issue temporary regulations under section 506 prescribing the manner in which organizations described in section 501(c)(4) must notify the IRS of their intent to operate under section 501(c)(4). Organizations will have at least 60 days from the date such regulations are issued to submit the information required under section 506, and should wait to submit the information until the regulations are issued. No penalties under section 6652(c)(4) will apply to a section 501(c)(4) organization that provides the section 506 notification by the due date provided in the regulations.