Tax-Exempt Organizations Must Notify IRS of Responsible Party Changes

The IRS recently posted a news release reminding tax-exempt organizations of the requirement to notify the agency whenever there’s been a change to their responsible party.

IRS regulations require businesses and tax-exempt organizations with employer identification numbers (EIN) to update their responsible party information within 60 days of any change, by filing Form 8822-B, Change of Address or Responsible Party – Business. It’s critical the agency has accurate updated information on file in the unfortunate event of identity theft or other fraud issue related to EINs or business accounts.

For tax-exempt organizations, the responsible party is generally the same as the “principal officer” as defined in Form 990, Return of Organization Exempt from Income Tax, instructions. The definition states that a principal officer is “an officer of the organization who, regardless of title, has ultimate responsibility for implementing the decisions of the organization's governing body, or for supervising the management, administration or operation of the organization.”

For those tax-exempt organizations whose governing body changes regularly, it may be a best practice to include Form 8822-B within the orientation packet to ensure the IRS notification doesn’t get missed. Please reach out to us if you have any questions relative to this or any other tax-exempt organization matter. 

With one of the largest regional tax practices in the country, Schneider Downs Tax Advisors’ personal focus on clients and in-depth understanding of current issues ensures that clients are complying with tax-filing requirements and maximizing tax benefits. Our industry knowledge and focus ensure the delivery of technical tax strategies which can be implemented as practical business initiatives. Learn more at www.schneiderdowns.com/tax-services.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2024 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on
The Importance of Certified Business Valuation Professionals
Tax, Tax Impact BY Jared Sofranko
IRS Tax-Exempt and Governmental Entity New Compliance Programs
Tax BY Brianna Lundy
Employee Retention Credit: IRS’s Voluntary Disclosure Program Expiring on March 22, 2024
Pillar Two is Here; Is Your Company Ready?
Administration’s 2025 Revenue Proposals – Potential Changes for Private Foundations
Not-for-Profit, Tax BY Sarah Piot
Not-For-Profit Tax Credit Opportunities Included in the Inflation Reduction Act
Register to receive our weekly newsletter with our most recent columns and insights.
Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us
contact us
Pittsburgh

This site uses cookies to ensure that we give you the best user experience. Cookies assist in navigation, analyzing traffic and in our marketing efforts as described in our Privacy Policy.

×