Internal Revenue Service Mandates Electronic Filing of Form 8940 through Pay.gov

The Internal Revenue Service (the IRS) released Revenue Procedure (Rev. Proc.) 2023-12 that amends Rev. Proc. 2023-5, which mandates the electronic filing of Form 8940, Request for Miscellaneous Determination effective April 4, 2023. 

The electronic filing requirement includes a 90-day transition relief. Rev. Proc. 2023-12 also included procedures for requesting expedited handling and indicates an authorized individual may electronically sign the Form 8940 under penalties of perjury. Like the filing of Form 1023, the expedited handling request must be indicated on the Form 8940 with a supporting written statement attached to the completed form. The filing fee for Form 8940 must also be paid. The current filing fees can be found in Appendix A of Rev. Proc. 2023-5.  

Form 8940 is most used by tax-exempt entities for the following purposes:

• Reclassification of foundation status 
• Private foundation advanced approval of certain set-asides in section 4942(g)(2)
• Private foundation advanced approval of scholarship procedures in section 4945(f)
• A Section 509(a)(3) organization change in type of supporting organization
• Advanced ruling request of termination of private foundation status under section 507(b)(1)(B)

Rev. Proc. 2023-12 added the following three additional types of requests to the electronic Form 8940:

• Private foundations giving notice only of intent only to terminate private foundation status under Section 507(b)(1)(B)
• Voluntary termination of Section 501(c)(3) recognition by a government entity
• Canadian registered charities requesting either a public charity classification or to be included in the IRS Publication 78 data

For more information regarding Form 8940, visit the IRS website.

About Schneider Downs Not-for-Profit Services  

Our Not-for-Profit industry group is committed to providing exceptional service and expertise to a community of clients who serve our regions tirelessly each day. We provide valuable insight to not-for-profit organizations of all sizes and their boards through our assurance, tax, advisory and technology consulting services and not-for-profit fund accounting software.  

To learn more, visit our Not-for-Profit Industry Group page.