Terminating Private Foundation Status

If the organization fails to satisfy the requirements for public charity status, then it will be treated as a private foundation and will be subject to IRC Sect. 4940 excise tax on net investment income. There are two circumstances for abatement described in IRC Sect. 507(g): * A private foundation can distribute all its net assets to a public charity as described in item No. 3 above. * A private foundation could provide notice as provided in IRC 6104(c) to the "appropriate State officer," who then notifies within one year the Secretary that under state law corrective actions have been initiated to preserve the private foundation assets for a charitable purpose specified in IRC Sect. 501(c)(3) as required by court order, and upon completion the Secretary receives certification of such assets preserved. Helpful Resource Termination of PF Status: irs.gov/charities-nonprofits/section-507b-termination-of-private-foundationstatus-special-rules Termination of Tax Exempt Organization: irs.gov/ charities-non-profits/termination-of-an-exemptorganization IRS Form 990-PF: irs.gov/pub/irs-pdf/f990pf.pdf IRS Form Instructions 990-PF: irs.gov/pub/irs-pdf/ i990pf.pdf IRS Form Instructions Form 4779: irs.gov/pub/irspdf/p4779.pdf IRS Form 872 - Consent to Extend the Time to Assess Tax: irs.gov/pub/irs-utl/f872ovdi.pdf Instructions Form 872: irs.gov/individuals/ international-taxpayers/instructions-for-completingthe-form-872-and-the-consent-to-extend-the-time-toassess-civil-penalties-provided-by-31-usc-5321 California: irs.gov/charities-non-profits/california Donor Advised Funds (DAF) options if held at a qualified public charity: irs.gov/charities-non-profits/ charitable-organizations/donor-advised-funds Life Cycle of a Private Foundation-Termination of Foundation Under State Law: irs.gov/charities-nonprofits/private-foundations/life-cycle-of-a-privatefoundation-termination-of-foundation-under-state-law