Notifying the IRS of a Nonprofit Name Change: A Comprehensive Guide

Renaming a nonprofit organization is a significant milestone that requires certain formalities to be followed in order to maintain compliance with state and federal regulations. One of these essential steps is notifying the Internal Revenue Service (IRS) of the change. This article provides a detailed, step-by-step guide on how to properly notify the IRS of a nonprofit name change, ensuring that your organization remains in good standing with all relevant authorities.

Understanding the Importance of Notifying the IRS

The Internal Revenue Service, through the Nonprofit Branch, requires all nonprofits to notify it of any changes that impact its tax status, including a name change. Failing to do so can lead to tax penalties, complications in filing future tax returns, and even legal issues. Therefore, it is crucial to follow the appropriate procedures to ensure a smooth transition.

Step 1: Amend Your Articles of Incorporation

Renaming a nonprofit involves amending its articles of incorporation, which are the foundational legal documents of any corporation. This step is necessary to officially reflect the new name in your nonprofit’s record books. Follow these steps to amend your articles of incorporation:

Review your current articles of incorporation: Locate the original document that establishes your nonprofit. This document will need to be updated to include the new name. Again, consult the Secretary of State: Check the specific requirements for amending articles of incorporation in your state. This typically involves filing a separate form or amending the existing articles. File the updated articles: Once the amendments are drafted, file them with the appropriate state agency. This step finalizes the new name for your nonprofit.

Step 2: Update Your EIN Information

After changing your nonprofit’s name, it is essential to update any forms that include the Employer Identification Number (EIN). In most cases, your EIN remains unchanged after a name change, which simplifies this step. However, it is critical to ensure that all documents you submit to the IRS are up-to-date:

Review your EIN status: Visit the IRS website and use the EIN lookup tool to confirm that your EIN is still active and unchanged. Update forms and documentation: Replace and re-file any internal and external documents that reference the old name with the new name, including letters, contracts, and financial reports.

Step 3: Notify the IRS of the Name Change

With the new name established in your articles of incorporation and EIN information updated, the final step is to notify the IRS of the name change. This ensures that all future communications with the IRS and tax filings are under the correct name:

Use Form 1128 Chromax (Tax Extension for Changes in Name, Address, or Tax Classification): This form is specifically designed for nonprofit organizations. It allows you to report any changes to your name, tax classification, or EIN. Submit this form to the IRS via mail or electronically. Submit the form promptly: Ensure that the form is completed and submitted as soon as possible to avoid any delays in processing future tax returns. Keep copies of the submission: Retain a copy of the form you submitted for your records. This will be helpful for future reference and in case you need to prove the update to the IRS.

Conclusion

Properly notifying the IRS of a nonprofit name change is a vital step in maintaining compliance with federal regulations. By following the steps outlined in this guide, you can ensure a smooth and accurate transition, avoiding potential legal and financial issues. Remember to consult with legal and tax professionals if you have any questions or if your situation is more complex.

If you have more questions or need further guidance, visit the IRS’s National Service Center for Business Entities. They can provide additional resources and assistance to ensure your nonprofit is in full compliance with all necessary requirements.