(13) 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.
(14) 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.
(15) 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.
(16) 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.
(17) What disclosure laws apply to private foundations?
Private foundations must make a copy of their most recently filed Form 990-PF, Return of Private Foundation, available for public inspection for a 180 day period beginning on the day the private foundation published the requisite notice.
The requisite notice is one that:
(1) is filed no later than the day the Form 990-PF is filed;
(2) is filed in a newspaper having general circulation in the county in which the private foundation's principal office is located; and
(3) states the Form 990-PF is available for public inspection during regular business hours for 180 days and states the address and telephone number of the private foundation's principal office and principal manager.
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.
(18) 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-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.
(19) 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.
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.
(20) 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 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.
