IRS Updates Process for Getting Tax-Exempt Status on Group Basis

The IRS updated the procedures for obtaining tax-exempt status on a group basis.

The guidance (Rev. Proc. 2026-8) allows subordinate organizations included in a group exemption letter to forgo filing its own application for exemption. It also updates the procedures a central organization must follow to maintain a group exemption letter.

The IRS in 2020 proposed changes to group exemption letter procedures then stopped accepting applications in June of that year. It received 29 comments on the changes. The IRS in Notice 2026-8discussed those comments.

The intent of the new guidance is to “reduce the administrative burden ...