The Law of Tax-Exempt Organizations + Website, 2017 Cumulative Supplement, 11th Edition

CHAPTER TWENTY-EIGHT

Operational Requirements

1. *§ 28.1 Changes in Operations or Form
2. *§ 28.2 Annual Reporting Rules
3. § 28.3 Annual Information Return
4. *§ 28.4 Notification Requirement
5. § 28.11 IRS Document Disclosure Rules
6. *§ 28.12 Document Disclosure Obligations of Exempt Organizations
7. § 28.18 Tax-Exempt Organizations and Tax Shelters
8. § 28.19 International Grantmaking 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 ...