This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

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new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

36395 

Vol. 74, No. 140 

Thursday, July 23, 2009 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9454] 

RIN 1545–BG37 

Notification Requirement for TaxExempt Entities Not Currently 

Required To File 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations and removal of 

temporary regulations. 

SUMMARY: This document contains final 

regulations as required by section 

6033(i)(1) describing the time and 

manner in which certain tax-exempt 

organizations not currently required to 

file an annual information return under 

section 6033(a)(1) are required to submit 

an annual electronic notice including 

certain information required by section 

6033(i)(1)(A) through (F). These 

regulations affect tax-exempt 

organizations whose annual gross 

receipts are not normally in excess of 

$25,000. 

DATES: Effective Date: These regulations 

are effective on July 23, 2009. 

Applicability Date: These regulations 

are applicable to annual periods 

beginning after 2006. 

FOR FURTHER INFORMATION CONTACT: 

Monice Rosenbaum at (202) 622–6070 

(not a toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

This document contains amendments 

to the Income Tax Regulations (26 CFR 

part 1) under section 6033(i)(1) relating 

to the notification requirement for 

entities not currently required to file an 

annual information return under section 

6033(a)(1). Section 6033(i)(1) was added 

by section 1223(a) of the Pension 

Protection Act of 2006, Public Law 109– 

208, 120 Stat. 1090 (2006) (PPA 2006), 

effective for annual periods beginning 

after 2006. Section 6033(i)(1) requires 

the Treasury Secretary to promulgate 

regulations that describe the time and 

manner in which certain tax-exempt 

organizations not currently required to 

file an annual information return are to 

submit an annual electronic notification 

including information set forth in 

section 6033(i)(1)(A) through (F). 

On November 15, 2007, temporary 

regulations (TD 9366, 2007–52 IRB 

1232) were published in the Federal 

Register (72 FR 64147) satisfying the 

requirement that the Treasury Secretary 

promulgate regulations as described in 

the preceding paragraph. Those 

temporary regulations were corrected on 

November 23, 2007 (72 FR 65667) and 

December 14, 2007 (72 FR 71060). A 

notice of proposed rulemaking (REG– 

104942–07, 2007–52 IRB 1264) crossreferencing the temporary regulations 

was published in the Federal Register 

(72 FR 64174) on November 15, 2007. 

The IRS and the Treasury Department 

received four written comments from 

the public in response to the proposed 

and temporary regulations. No hearing 

was requested or held. After 

consideration of the comments received, 

it was determined that the proposed 

regulations would be finalized without 

change. Accordingly, the proposed 

regulations are adopted as amended by 

this Treasury decision and the 

corresponding temporary regulations are 

removed. The final regulations retain 

the provisions of the proposed and 

temporary regulations and make minor 

typographical changes. 

Explanation of Revisions and Summary 

of Comments 

One comment pointed out that there 

is no de minimis rule regarding the 

amount of income an organization 

receives during the year which would 

exempt it from having to submit an 

electronic notification. Section 6033(i) 

does not provide a de minimis rule, nor 

does it provide discretionary authority 

for the IRS and the Treasury Department 

to establish a de minimis exception for 

reporting under section 6033(i)(1). 

Another comment objected to the 

requirement that the notification be 

submitted electronically. The IRS and 

the Treasury Department note that the 

statute requires that information be 

submitted electronically, and makes no 

provision for paper notification. 

However, as stated in the preamble to 

the temporary regulations, if an 

organization that is required to submit 

an annual electronic notification files a 

complete Form 990, ‘‘Return of 

Organization Exempt from Income Tax,’’ 

or Form 990–EZ, ‘‘Short Form Return of 

Organization Exempt from Income Tax,’’ 

the annual notification required under 

section 6033(i) shall be deemed 

satisfied. The annual notification 

requirement is not satisfied if the Form 

990 or Form 990–EZ contains only those 

items of information that would have 

been required by submitting the 

notification in electronic form. 

One comment asked about the intent 

of the regulations and the application of 

the requirement to submit electronic 

notification to organizations that are 

local chapters or clubs of larger 

organizations. The intent of the 

regulations, which were required by 

statute, is to provide the public with the 

most accurate information about taxexempt organizations. With respect to 

organizations that are local chapters or 

clubs of larger organizations, if the 

organization is a subordinate of a parent 

organization and the subordinate is 

included on the parent’s group return, 

the subordinate need not submit the 

electronic notification. However, if an 

organization is not part of a group return 

and is a separate legal entity that meets 

the criteria for submitting the electronic 

notification, it must submit Form 990– 

N, ‘‘Electronic Notice (e-Postcard) for 

Tax-Exempt Organizations Not Required 

To File Form 990 or 990–EZ.’’ 

Finally, another comment asked about 

the applicability of the electronic 

notification requirement to Qualified 

State and Local Political Organizations 

(QSLPOs). QSLPOs are not 

organizations described in section 

501(c) that are required to file a return 

under section 6033(a); therefore, the 

provisions of these final regulations do 

not apply to them. However, QSLPOs 

may have other reporting requirements 

under section 6033(g). 

Special Analyses 

It has been determined that this 

Treasury decision is not a significant 

regulatory action as defined in 

Executive Order 12866. Therefore, a 

regulatory assessment is not required. It 

also has been determined that section 

553(b) of the Administrative Procedure 


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36396 Federal Register / Vol. 74, No. 140 / Thursday, July 23, 2009 / Rules and Regulations 

Act (5 U.S.C. chapter 5) does not apply 

to these regulations. 

It is hereby certified that the 

collection of information in § 1.6033–6 

will not have a significant economic 

impact on a substantial number of small 

entities. Accordingly, a regulatory 

flexibility analysis under the Regulatory 

Flexibility Act (5 U.S.C. 601) is not 

required. The effect of these regulations 

on small entities flows directly from the 

statute these regulations implement. 

Section 6033(i)(1) requires that certain 

entities submit annual notification, in 

electronic form, setting forth: The legal 

name of the organization; any name 

under which such organization operates 

or does business; the organization’s 

mailing address and Internet Web site 

address (if any); the organization’s 

taxpayer identification number; the 

name and address of a principal officer; 

and evidence of the continuing basis for 

the organization’s exemption from the 

filing requirements under section 

6033(a)(1). 

Pursuant to section 7805(f) of the 

Internal Revenue Code, these 

regulations were submitted to the Chief 

Counsel for Advocacy of the Small 

Business Administration for comment 

on their impact on small business. 

Drafting Information 

The principal author of these 

regulations is Monice Rosenbaum of the 

Office of Division Counsel/Associate 

Chief Counsel (Tax Exempt and 

Government Entities). However, other 

personnel from the IRS and the Treasury 

Department participated in their 

development. 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Adoption of Amendments to the 

Regulations 

■ Accordingly, 26 CFR part 1 is 

amended as follows: 

PART 1—INCOME TAXES 

■ Paragraph 1. The authority citation 

for part 1 continues to read in part as 

follows: 

Authority: 26 U.S.C. 7805 * * * 

Section 1.6033–6 also issued under 26 

U.S.C. 6033(i)(1). * * * 

■ Par. 2. Section 1.6033–6 is added to 

read as follows: 

§ 1.6033–6 Notification requirement for 

entities not required to file an annual 

information return under section 6033(a)(1) 

(taxable years beginning after December 31, 

2006). 

(a) In general. Except as otherwise 

provided in this paragraph, every 

organization exempt from taxation 

under section 501(a) that is not required 

to file a return described in § 1.6033– 

2(a)(2), other than an organization 

described in section 401(a) or 501(d), 

shall submit annually, in electronic 

form, a notification setting forth the 

items described in paragraph (c) of this 

section and such other information as 

may be prescribed in the instructions 

and publications issued with respect to 

the notification. 

(b) Organizations not required to 

submit annual electronic notification. 

(1) An organization exempt from 

taxation under section 501(a) that is 

required to file or files an annual 

information return under section 

6033(a)(1) shall not submit an annual 

electronic notification under section 

6033(i). This includes the following 

types of organizations: 

(i) Any organization included in a 

group return for that year under 

§ 1.6033–2(d). 

(ii) All private foundations required to 

file under § 1.6033–2(a)(2)(i) Form 990– 

PF, ‘‘Return of Private Foundation or 

Section 4947(a)(1) Nonexempt 

Charitable Trust Treated as a Private 

Foundation.’’ 

(iii) Section 509(a)(3) supporting 

organizations required to file under 

§ 1.6033–2(a)(2)(i) Form 990, ‘‘Return of 

Organization Exempt From Income 

Tax,’’ or Form 990–EZ, ‘‘Short Form 

Return of Organization Exempt From 

Income Tax.’’ 

(iv) A section 501(c)(21) black lung 

trust required to file under § 1.6033– 

2(a)(2)(i) Form 990–BL, ‘‘Information 

and Initial Excise Tax Return for Black 

Lung Benefit Trusts and Certain Related 

Persons.’’ 

(v) Any organization that is required 

to file or files an annual information 

return under section 6033(a)(1) on any 

other form prescribed by the Internal 

Revenue Service for that purpose. 

(2) An organization exempt from 

taxation under section 501(a) that is not 

required to file a return under section 

6033(a)(1) is also not required to submit 

an annual electronic notification under 

section 6033(i). This includes the 

following types of organizations: 

(i) A church, an interchurch 

organization of local units of a church, 

a convention or association of churches, 

or an integrated auxiliary of a church (as 

defined in § 1.6033–2(h)). 

(ii) An exclusively religious activity of 

any religious order. 

(iii) A mission society sponsored by 

or affiliated with one or more churches 

or church denominations, more than 

one-half of the activities of which 

society are conducted in, or directed at 

persons in, foreign countries. 

(iv) An educational organization 

(below college level) described in 

section 170(b)(1)(A)(ii), that has a 

program of a general academic nature, 

and that is affiliated (within the 

meaning of § 1.6033–2(h)(2)) with a 

church or operated by a religious order. 

(v) A State institution, the income of 

which is excluded from gross income 

under section 115(a). 

(vi) An organization described in 

section 501(c)(1). 

(vii) An organization that is a 

governmental unit or an affiliate of a 

governmental unit exempt from Federal 

income tax under section 501(a). 

(3) If an organization exempt from 

taxation under section 501(a) is not 

described in paragraph (b)(1) or (2) of 

this section, the organization must 

submit an annual electronic 

notification. Thus, a black lung trust 

that normally has gross receipts of 

$25,000 or less is not required to file 

Form 990–BL but is required to submit 

an annual electronic notification. A 

section 509(a)(3) supporting 

organization of a religious organization 

that normally has gross receipts of 

$5,000 or less is not required to file 

Form 990 or Form 990–EZ but is 

required to submit an annual electronic 

notification. 

(c) Additional notification 

requirements—(1) In general. Any 

organization described in paragraph (a) 

of this section shall submit an annual 

electronic notification described in 

section 6033(i)(1). The annual electronic 

notification shall— 

(i) Be in electronic form; and 

(ii) Set forth— 

(A) The legal name of the 

organization; 

(B) Any name under which the 

organization operates or does business; 

(C) The organization’s mailing address 

and Internet Web site address (if any); 

(D) The organization’s taxpayer 

identification number; 

(E) The name and address of a 

principal officer; 

(F) Evidence of the continuing basis 

for the organization’s exemption from 

the filing requirements under section 

6033(a)(1); and 

(G) Additional information necessary 

to process the notification. 

(2) The mailing address required by 

section 6033(i)(1)(C) and submitted in 

the annual electronic notification shall 

be the organization’s last known address 

as provided by § 301.6212–2(a) of this 

chapter. This last known address may 

be updated as provided under 

§ 301.6212–2 of this chapter, or by clear 

and concise notification. The Internal 

Revenue Service will use this last 

known address as the organization’s 


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Federal Register / Vol. 74, No. 140 / Thursday, July 23, 2009 / Rules and Regulations 36397 

address of record and will direct all 

mailings to this address. 

(3) By submitting the annual 

electronic notification described in 

paragraph (c)(1) of this section, an 

organization acknowledges that it is not 

required to file a return under section 

6033(a) because its annual gross receipts 

are not normally in excess of $25,000. 

In order to make this determination, the 

organization must keep records that 

enable it to calculate its gross receipts. 

All organizations are required to 

maintain records under section 6001. 

These records will provide evidence of 

the continuing basis for the 

organization’s exemption from the filing 

requirements under section 6033(a)(1). 

(4) If an organization that is required 

to submit an annual electronic 

notification files a complete Form 990 

or Form 990–EZ, the annual electronic 

notification requirement shall be 

deemed satisfied. The annual electronic 

notification requirement is not satisfied 

if the Form 990 or Form 990–EZ 

contains only those items of information 

that would have been required by 

submitting the notification in electronic 

form. Also, the filing of a complete 

Form 990 or Form 990–EZ, rather than 

the submission of an annual electronic 

notification, is the filing of a return that 

starts the period of limitations for 

assessment under section 6501(g)(2). 

(d) No effect on other filing 

requirements. An organization that is 

relieved from filing an information 

return under section 6033(a) is still 

subject to the requirements of 

§§ 1.6033–2(i) and (j), concerning: 

notice regarding changes in character, 

operations, or purpose; provision of 

additional information; duty to file 

other returns of information; and duty to 

file unrelated business tax returns. If an 

organization is required to file an 

unrelated business tax return, Form 

990–T, ‘‘Exempt Organization Business 

Income Tax Return,’’ the filing of that 

return does not relieve the organization 

from the requirement of submitting an 

annual electronic notification under 

section 6033(i). 

(e) Accounting period for submitting 

annual electronic notification. An 

annual electronic notification required 

by this section shall be on the basis of 

the established annual accounting 

period of the organization. If the 

organization has no established 

accounting period, the annual electronic 

notification shall be on the basis of the 

calendar year. 

(f) Time and place for submitting 

annual electronic notification. The 

annual electronic notification required 

by this section shall be submitted on or 

before the 15th day of the fifth calendar 

month following the close of the period 

for which the notification is required to 

be submitted. Thus, an organization 

with an accounting period ending 

December 31, 2007, is required to 

submit an annual electronic notification 

by May 15, 2008. The notification shall 

be submitted in accordance with 

instructions and publications, including 

those provided at the Internal Revenue 

Service Web site for exempt 

organizations. 

(g) Effective/applicability date. These 

regulations are applicable to annual 

periods beginning after 2006. 

§ 1.6033–6T [Removed] 

■ Par. 3. Section 1.6033–6T is removed. 

Approved: July 15, 2009. 

Linda E. Stiff, 

Deputy Commissioner for Services and 

Enforcement. 

Michael Mundaca, 

Acting Assistant Secretary of the Treasury 

(Tax Policy). 

[FR Doc. E9–17478 Filed 7–22–09; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Office of Foreign Assets Control 

31 CFR Part 560 

Iranian Transactions Regulations 

AGENCY: Office of Foreign Assets 

Control, Treasury. 

ACTION: Final rule. 

SUMMARY: The Office of Foreign Assets 

Control of the U.S. Department of the 

Treasury (‘‘OFAC’’) is amending the 

Iranian Transactions Regulations to 

revise the definition of the term Iranian 

accounts and make conforming changes 

to other sections of the regulations. 

DATES: Effective Date: July 23, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Assistant Director for Compliance 

Outreach & Implementation, tel.: 202/ 

622–2490, Assistant Director for 

Licensing, tel.: 202/622–2480, Assistant 

Director for Policy, tel.: 202/622–4855, 

Office of Foreign Assets Control, or 

Chief Counsel (Foreign Assets Control), 

tel.: 202/622–2410, Office of the General 

Counsel, Department of the Treasury, 

Washington, DC 20220 (not toll free 

numbers). 

SUPPLEMENTARY INFORMATION: 

Electronic and Facsimile Availability 

This document and additional 

information concerning the Office of 

Foreign Assets Control are available 

from OFAC’s Web site (http:// 

www.treas.gov/ofac) or via facsimile 

through a 24-hour fax-on demand 

service, tel.: 202/622–0077. 

Background 

The Iranian Transactions Regulations, 

31 CFR part 560 (the ‘‘ITR’’), implement 

a series of Executive Orders that began 

with Executive Order 12613 of October 

29, 1987, issued pursuant to authorities 

including the International Security and 

Development Cooperation Act of 1985 

(22 U.S.C. 2349aa–9). In that original 

order, after finding, inter alia, that the 

Government of Iran was actively 

supporting terrorism as an instrument of 

state policy, the President prohibited 

the importation of Iranian-origin goods 

and services. Subsequently, in 

Executive Order 12957, issued on March 

15, 1995, under the authority of, inter 

alia, the International Emergency 

Economic Powers Act (50 U.S.C. 1701– 

1706) (‘‘IEEPA’’), the President declared 

a national emergency with respect to the 

actions and policies of the Government 

of Iran, including its support for 

international terrorism, its efforts to 

undermine the Middle East peace 

process, and its efforts to acquire 

weapons of mass destruction and the 

means to deliver them. To deal with that 

threat, Executive Order 12957 imposed 

prohibitions on certain transactions 

with respect to the development of 

Iranian petroleum resources. On May 6, 

1995, to further respond to this threat, 

the President issued Executive Order 

12959, which imposed comprehensive 

trade and financial sanctions on Iran. 

Finally, on August 19, 1997, the 

President issued Executive Order 13059 

consolidating and clarifying the 

previous orders. 

Existing § 560.320 of the ITR defines 

the term Iranian accounts to mean 

accounts of persons located in Iran or of 

the Government of Iran maintained on 

the books of either a United States 

depository institution or a United States 

registered broker or dealer in securities. 

OFAC is revising § 560.320 to clarify the 

definition by substituting the new 

phrase ‘‘persons who are ordinarily 

resident in Iran, except when such 

persons are not located in Iran’’ for the 

phrase ‘‘persons located in Iran.’’ This 

change will improve OFAC’s overall 

administration of the ITR and facilitate 

compliance by U.S. financial 

institutions. As revised, § 560.320 

defines Iranian accounts to mean 

accounts of persons who are ordinarily 

resident in Iran, except when such 

persons are not located in Iran, or of the 

Government of Iran maintained on the 

books of either a United States 

depository institution or a United States 

registered broker or dealer in securities. 


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