CHAPTER THIRTY‐FIVEMaintenance of Tax‐Exempt Status and Avoidance of Penalties

    1. (a) General Rules
    2. (b) Redomestications
  1. § 35.2A Modification of Tax Exemption (New)
  2. *§ 35.4 Redesigned Annual Information Return
  3. § 35.5 Disclosure Requirements
    1. (a) Applications and Annual Information Returns
  4. § 35.6 IRS Disclosure to State Officials

*p. 956. Insert following heading:

(a) General Rules

*p. 958. Insert following first paragraph, before heading:

(b) 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. 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 require the filing of a new application.34.1 In this instance, the redomestication process required an amendment to the articles of incorporation ...

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