SECTION 3. EXTENSION OF

PERIOD TO NOTIFY IRS

The Treasury Department and the IRS intend to issue temporary regulations implementing the section 506 requirement that organizations described in section 501(c)(4) notify the IRS of their intent to operate under section 501(c)(4). In order to provide adequate transition time for organizations to comply with the new procedures, the Treasury Department and the IRS are extending the due date for submitting the section 506 notification until at least 60 days from the date the regulations are issued. No penalties under section

6652(c)(4) will apply to a section 501(c)(4) organization that submits the required notification by the due date provided in the regulations. In addition, comments from the public regarding the new section 506 notification requirement and related provisions will be requested during the rulemaking process.