CHAPTER TWENTY-EIGHT

Operational Requirements

*§ 28.1 CHANGES IN OPERATIONS OR FORM

*(a) Changes in Form

*p. 880. Delete first complete paragraph (including footnotes).

*p. 881. Insert following second complete paragraph, before heading:

*(c) Redomestications

Redomestication is a mechanism under state law enabling a nonprofit organization to change its state of domicile. This mechanism typically does not require formation of a new legal entity.24.1 A nonprofit organization may consider changing its state of domicile for practical reasons that do not involve a change in the organization's character, purposes, or methods of operation. In contrast to a change in legal form, a redomestication, at least under certain circumstances, does not trigger a requirement to file a new application for recognition of exemption and thus allows the nonprofit exempt organization to continue to rely on its determination letter.

The IRS has distinguished a redomestication from circumstances where there is establishment of a new legal entity. In its principal guidance on the point, the IRS ruled that, under certain circumstances, a redomestication does not ...

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