Extensions for Type III Supporting Organization Transition Rules

Supporting organizations (SOs) receive tax exempt status by supporting other public charities or governmental organizations. In December 2012, the Treasury Department released final and temporary rules for Type III SOs, including stricter rules for qualifying as a Type III SO, and for avoiding the unfavorable “non-functionally integrated” status. For many Type III SOs, the transition period for meeting the new requirements expires in a few days. However, the IRS has effectively extended transition relief for Type III SOs that support governmental organizations.

See Brad Bedingfield, IRS Provides Limited Extension for Type III Supporting Organization Transition Rules, Tax Law Roundup, Dec. 27, 2013.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.