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## Record

- **Collection:** Agency decision
- **Document type:** Agency decision

## Text

HIGHLIGHTS
OF THIS ISSUE




Bulletin No. 2026–4
January 20, 2026

These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.

EXCISE TAX
Announcement 2026-1, page 402.

Announcement 2026-1 provides important information
for interested taxpayers and potential claimants regarding
claims under § 6435 of the Internal Revenue Code for tax
paid on dyed fuel.

EXEMPT ORGANIZATIONS
Notice 2026-8, page 368.

This notice discusses the comments received in response to
the proposed revenue procedure regarding the group exemption letter program set forth in Notice 2020-36, 2020-21
I.R.B. 840, along with the modifications made in response to
those comments and other significant revisions made to the
proposed revenue procedure.

Rev. Proc. 2026-8, page 380.

This revenue procedure modifies and supersedes Rev. Proc.
80-27, 1980-1 C.B. 677 (as modified by Rev. Proc. 96-40,
1996-2 C.B. 301) by setting forth updated procedures to
obtain recognition of exemption from federal income tax
on a group basis for organizations described in § 501(c) of
the Internal Revenue Code that are affiliated with and under
the general supervision or control of a central organization.
The revenue procedure relieves each subordinate organization included in a group exemption letter from filing its own
application for recognition of exemption. It also sets forth
updated procedures a central organization must follow to
maintain a group exemption letter.

INCOME TAX
Notice 2026-1, page 365.

This notice provides interim guidance, pending the issuance
of forthcoming proposed regulations, relating to the credit

Finding Lists begin on page ii.

for carbon oxide sequestration under section 45Q (§ 45Q
credit) of the Internal Revenue Code to reflect the Environmental Protection Agency’s (EPA) proposed regulations to
amend the Greenhouse Gas Reporting Program to remove
reporting obligations imposed under subpart RR of 40 CFR
part 98 (subpart RR). See 90 FR 44591 (Sept. 16, 2025).
Specifically, this notice provides a safe harbor for determining eligibility for the § 45Q credit for qualified carbon oxide
that is captured and disposed of in secure geological storage (and carbon oxide described in § 1.45Q-2(h)(5)) and not
used as a tertiary injectant in a qualified enhanced oil or natural gas recovery project during calendar year 2025 in the
event the EPA does not launch the electronic Greenhouse
Gas Reporting Tool for filers to prepare and submit information required under subpart RR for reporting year 2025 by
June 10, 2026.

Notice 2026-10, page 378.

This notice provides the optional 2026 standard mileage
rates for taxpayers to use in computing the deductible costs
of operating an automobile for business, charitable, medical,
or moving expense purposes. This notice also provides the
amount taxpayers must use in calculating reductions to basis
for depreciation taken under the business standard mileage
rate, and the maximum standard automobile cost that may
be used in computing the allowance under a fixed and variable rate plan. Additionally, this notice provides the maximum
fair market value of employer-provided automobiles first
made available to employees for personal use in calendar
year 2026 for which employers may use the fleet-average
valuation rule in § 1.61-21(d)(5)(v) or the vehicle cents-permile valuation rule in § 1.61-21(e).

Rev. Proc. 2026-9, page 393.

This revenue procedure publishes the amounts of unused
housing credit carryovers allocated to qualified states under
§ 42(h)(3)(D) of the Internal Revenue Code for calendar year
2025.

Rev. Proc. 2026-10, page 394.

This is a revenue procedure that provides additional guidance on the process for requesting PLRs from the IRS, as
generally set forth in Rev. Proc. 2025-1, for consent to make
retroactive qualified electing fund (QEF) elections under section 1295(b) of the Internal Revenue Code and Treas. Reg. §
1.1295-3(f).

T.D. 10041, page 360.

This document contains final regulations regarding the base
erosion and anti-abuse tax imposed on certain large corporate taxpayers with respect to certain payments made to
foreign related parties. The final regulations relate to how
qualified derivative payments with respect to securities lending transactions are determined and reported. The final regulations affect corporations with substantial gross receipts
that make payments to foreign related parties.

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and
enforce the law with integrity and fairness to all.

Introduction
The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly.
It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless otherwise indicated. Procedures relating solely to matters of internal management are not published; however, statements of
internal practices and procedures that affect the rights and
duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service
on the application of the law to the pivotal facts stated in
the revenue ruling. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices,
identifying details and information of a confidential nature are
deleted to prevent unwarranted invasions of privacy and to
comply with statutory requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned

against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B,
Legislation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative
Rulings. Bank Secrecy Act Administrative Rulings are issued
by the Department of the Treasury’s Office of the Assistant
Secretary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbarment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.

The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.

January 20, 2026 

Bulletin No. 2026–4

Part I
26 CFR 1.59A-3 and 26 CFR 1.59A-6

TD 10041
DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Part 1
Base Erosion and AntiAbuse Tax Rules for
Qualified Derivative
Payments on Securities
Lending Transactions
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final rule.
SUMMARY: This document contains
final regulations regarding the base erosion and anti-abuse tax imposed on certain
large corporate taxpayers with respect to
certain payments made to foreign related
parties. The final regulations relate to how
qualified derivative payments with respect
to securities lending transactions are
determined and reported. The final regulations affect corporations with substantial
gross receipts that make payments to foreign related parties.
DATES: Effective date: The final regulations are effective December 17, 2025.
Applicability dates: For dates of applicability, see §§ 1.59A-10 and 1.6038A-2(g).
FOR FURTHER INFORMATION
CONTACT: Sheila Ramaswamy at (202)
317-6938 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Authority
This document contains additions and
amendments to 26 CFR part 1 (Income
Tax Regulations) under sections 59A
and 6038A of the Internal Revenue Code
(Code) (“the final regulations”). The addi-

January 20, 2026

tions and amendments are issued pursuant
to the express delegations of authority to
the Secretary of the Treasury (or his delegate) provided under sections 59A(i) and
6038A(b)(2). The final regulations are
also issued under the express delegation
of authority under section 7805(a) of the
Code.
Background
This document contains final regulations under sections 59A and 6038A. The
base erosion and anti-abuse tax (“BEAT”)
of section 59A imposes on each applicable
taxpayer a tax equal to the base erosion
minimum tax amount for the taxable year,
which is the excess of a specified percentage of the modified taxable income of the
applicable taxpayer minus the applicable
taxpayer’s regular tax liability under section 26(b) of the Code reduced (but not
below zero) by certain credits. See section
59A(b)(1) and (2).
The applicable taxpayer determines
its modified taxable income by computing its taxable income without regard to
any base erosion tax benefit with respect
to any base erosion payment or the base
erosion percentage of any net operating
loss deduction allowed under section 172
of the Code for the taxable year. See section 59A(c)(1). Generally, a base erosion
payment is any deductible amount paid
or accrued by an applicable taxpayer to
a foreign person (as defined in section
6038A(c)(3)) that is a related party of the
applicable taxpayer and the base erosion
tax benefit is the deduction allowed under
Chapter 1 of the Code for the taxable year
for the base erosion payment. See section
59A(d)(1), (c)(2) and (f). Qualified derivative payments (“QDPs”), as defined in
section 59A(h)(2)(A), are not treated as
base erosion payments if they are properly
reported to the IRS. See section 59A(h)(1)
and (h)(2)(B).
On January 10, 2025, the Treasury
Department and the IRS published proposed regulations under sections 59A and
6038A (REG-107895-24) in the Federal
Register (90 FR 3085). The proposed
regulations would address how taxpayers
determine and report qualified derivative
payment amounts with respect to securi-

360

ties lending transactions. Two comments
were submitted in response to the proposed regulations, but only one of those
comments addressed the proposed regulations. The Summary of Comments and
Explanation of Revisions section of this
preamble discusses this comment. All
written comments received in response
to the proposed regulations are available
at https://www.regulations.gov or upon
request. A public hearing on the proposed
regulations was not held because there
were no requests to speak.
Summary of Comments and
Explanation of Revisions
Proposed § 1.59A-6(b)(3)(iii)(A)
would provide that mark-to-market gains
and losses from the securities leg of an
intercompany securities lending transaction are not treated as QDPs. As proposed, taxpayers would not be required
to include those amounts in their QDP
reporting. A conforming amendment in
proposed § 1.59A-3(b)(2)(iv) would provide that mark-to-market gains and losses
from the securities leg of a securities lending transaction are not taken into account
when determining the amount of a taxpayer’s base erosion payment.
Proposed § 1.59A-6(b)(3)(iv) would
provide rules for determining whether a
taxpayer made a substitute payment or
other payment pursuant to a securities lending transaction to a foreign related party.
Specifically, the rule would provide that a
taxpayer may determine the amount of a
substitute payment or other payment that it
has paid to a foreign related party by using
the amount actually paid by the taxpayer to
the foreign related party if the taxpayer can
specifically identify each recipient of the
substitute payment or other payment. If the
taxpayer cannot determine the recipient of
those payments, the rule would provide a
method that treats the substitute payments
or other payments that a taxpayer pays with
respect to borrowed securities as having
been paid first to foreign related parties
(but not in excess of the total amount of the
payments received by the foreign related
parties from all payors).
The comment recommended that the
final regulations provide definitions for

Bulletin No. 2026–4

terms used in the regulations such as
“qualified derivative payment,” “substitute payment,” “other amounts that relate
to the securities lending transaction,”
“mark-to-market gains and losses,” “securities leg of a securities lending transaction,” and “cash collateral” to reduce
ambiguity. The comment asserted that the
ambiguity could potentially lead to substitute payments being misclassified as
QDPs rather than base erosion payments.
The comment also requested additional
examples illustrating the classification of
substitute payments.
In response to this comment, the final
regulations include cross-references to
§§ 1.861-2(a)(7) and 1.861-3(a)(6) to
clarify the meaning of the term “substitute
payment.”
Although proposed § 1.59A-3(b)(2)
(iv)(B) indicates by exclusion that “other
amounts that relate to the securities lending transaction” refers to payments relating to the transaction other than mark-tomarket gains or losses and the delivery of
securities to or receipt of securities from
the lender, greater clarity that substitute
payments and borrow fees are included
in this term may be helpful. Therefore,
for consistency purposes, §§ 1.59A-3(b)
(2)(iv)(B) and 1.59A-6(b)(3)(iii) of the
final regulations have been modified to
use the term “items of income, gain, loss,
or deduction during the taxable year” and
explain that this term refers to amounts
such as substitute payments and borrow
fees that relate to the securities lending
transaction and does not include the delivery or receipt of securities. The final regulations also clarify that the term “markto-market gains and losses” with respect
to a securities lending transaction refers
to the recognition of gain or loss on the
transaction as if the taxpayer’s position in
the securities lending position were sold
for its fair market value on the last business day of the taxable year, as described
in § 1.59A-6(b)(1)(i).
Proposed § 1.59A-6(b)(3)(iii) would
provide cross-references to §§ 1.861-2(a)
(7) and 1.861-3(a)(6) for the definition of a
“securities lending transaction.” Sections
1.861-2(a)(7) and 1.861-3(a)(6) define
the term “securities lending transaction”
as “a transfer of one or more securities
that is described in section 1058(a) or a
substantially similar transaction.” These

Bulletin No. 2026–4

cross-references were intended to indicate
that “securities leg of a securities lending
transaction” refers to the components of
the transaction that relate to the transfer of
a security. The final regulations have been
modified to clarify that the securities leg
of a securities lending transaction refers
to the rights, obligations, and transfers of
securities and payments under the transaction other than the obligation to provide or
right to receive cash collateral and interest
(sometimes referred to as rebate) thereon.
Some of the terms cited by the comment
are already defined in other parts of the
regulations or are commonly understood
industry terms. For example, the term
“qualified derivative payment” is defined
in section 59A(h)(2)(A) and § 1.59A6(b); therefore, no additional definition is
required. Additionally, “cash collateral”
is a commonly understood industry term
that does not require a definition and is
already used in the existing regulations at
§ 1.59A-6(d)(2)(iii)(B).
The final regulations do not adopt the
comment to include examples illustrating
the classification of substitute payments.
The Treasury Department and IRS are of
the view that additional examples would
not add clarity because the final regulations now cross-reference regulations
illustrating the meaning of a substitute
payment, and the examples in proposed
§ 1.59A-6(b)(3)(iii)(B) clearly indicate
the types of payments that are referenced
by the term “substitute payment.”
The final regulations also make clarifying edits to the specific identification
method in proposed § 1.59A-6(b)(3)(iv)
(B). As noted previously, the proposed
regulations would have provided that a
taxpayer may determine the amount of
substitute payments or other payments
with respect to the securities leg of a securities lending transaction that it has paid
to a foreign related party by using the
amount actually paid by the taxpayer to
the foreign related party if the taxpayer can
specifically identify each recipient of the
substitute payment or other payment. This
proposed rule was intended to be available to a taxpayer only if the taxpayer is
able to identify all of the recipients of the
substitute payments and other payments
that taxpayer made with respect to the
securities leg of a securities lending transaction during the taxable year. The final

361

regulations clarify this rule and expand
the situations when a taxpayer may use
the specific identification method. Specifically, a taxpayer may use the specific
identification method of § 1.59A-6(b)(3)
(iv)(B) to determine the amount of the
substitute payments or other payments
with respect to the securities leg of a securities lending transaction that it has paid
to foreign related parties only if the taxpayer can specifically identify all recipients of the substitute payments or other
payments paid by the taxpayer or the taxpayer can specifically identify the payor
for all substitute payments or other payments with respect to the securities leg of
a securities lending transaction received
by foreign related parties. If a taxpayer
has paid any substitute payment or other
payment for which it cannot determine
the recipient and cannot specifically identify the payor for all substitute payments
received by foreign related parties, the
final regulations provide that the taxpayer
must use the alternative method provided
in § 1.59A-6(b)(3)(iv)(C).
The comment also recommended that
the final regulations provide additional
clarifying examples illustrating markto-market adjustments and the operation
of the allocation method of proposed
§ 1.59A-6(b)(3)(iv). The Treasury Department and the IRS consider the examples
that were provided in proposed § 1.59A6(b)(3)(iii)(B) to be sufficiently illustrative of the mechanics of mark-to-market adjustments; therefore, the clarity of
these rules will not be improved by adding additional examples in the final regulations. The Treasury Department and
the IRS agree, however, that an example
illustrating the allocation method would
be helpful. Therefore, the final regulations include an example of the allocation
method in § 1.59A-6(b)(3)(iv)(D).
Finally, the comment requested additional transition relief with respect to the
reporting requirements of § 1.6038A-2(b)
(7)(ix) such as a two-year phased implementation. The comment suggested that
in the first phase, the IRS could adopt
reduced reporting requirements or grant
safe harbor treatment for systems unable
to capture detailed data immediately to
allow time for internal systems upgrades
and process testing before requiring full
compliance. As an alternative, the com-

January 20, 2026

ment suggested permitting taxpayers to
submit evidence of system limitations
as the basis for temporary relief, while
establishing clear compliance milestones.
The final regulations do not adopt this
comment. Instead, the final regulations
retain the transition relief provided in the
proposed regulations, which delays the
applicability date of § 1.6038A-2(b)(7)
(ix). The rules relating to QDP reporting
apply to payments made in taxable years
beginning on or after January 1, 2027. It
is expected that this delayed applicability
date will give taxpayers sufficient time to
build and update the systems needed to
track QDPs.
Applicability Date
The preamble to the proposed regulation explained that proposed §§ 1.59A3(b)(2)(iv) (application of BEAT netting
rule to securities lending transactions) and
1.59A-6(b)(3)(ii) through (iv) (QDP rules
relating to securities lending transactions)
would apply to taxable years beginning
on or after the date that final regulations
are filed with the Federal Register. The
text of proposed § 1.59A-10(c), however, mistakenly provided that proposed
§§ 1.59A–3(b)(2)(iv) and 1.59A–6(b)(3)
(iii) and (iv) would apply to taxable years
beginning on or after January 10, 2025,
which was the date that the proposed regulations were filed with the Federal Register. Consistent with the preamble to the
proposed regulations, the final regulations
provide that §§ 1.59A-3(b)(2)(iv) and
1.59A-6(b)(3)(iii) and (iv) apply to taxable years beginning on or after December
17, 2025. However, taxpayers may choose
to apply these final rules to a taxable year
beginning on or after January 10, 2025,
and before December 17, 2025. Section
1.6038A-2(b)(7)(ix) (rules relating to
QDP reporting) applies to payments made
in taxable years beginning on or after January 1, 2027.
Special Analysis
I. Regulatory Planning and Review –
Economic Analysis
These final regulations are not subject
to review under section 6(b) of Executive
Order 12866 pursuant to the Memoran-

January 20, 2026

dum of Agreement (July 4, 2025) between
the Treasury Department and the Office
of Management and Budget regarding
review of tax regulations.
II. Paperwork Reduction Act
The Paperwork Reduction Act of 1995
(44 U.S.C. 3501-3520) (PRA) generally
requires that a Federal agency obtain the
approval of the Office of Management and
Budget (OMB) before collecting information from the public, whether such collection of information is mandatory, voluntary,
or required to obtain or retain a benefit. An
agency may not conduct or sponsor, and a
person is not required to respond to, a collection of information unless it displays a
valid control number assigned by the Office
of Management and Budget. These final
regulations do not create or impose any
additional information collection requirements in the form of reporting, recordkeeping requirements, or third-party disclosure
statements. The collection requirements
are within Form 8991 and its instructions
which are included in the OMB Control
Number 1545-0123.
III. Regulatory Flexibility Act
Generally, the final regulations affect
only aggregate groups of corporations
with average annual gross receipts of at
least $500 million and that make payments to foreign related parties. Generally, only large businesses have both
substantial gross receipts and make payments to foreign related parties. In accordance with the Regulatory Flexibility
Act (5 U.S.C. 601 et seq.) the Secretary
hereby certifies that these final regulations will not have a significant economic
impact on a substantial number of small
entities. Accordingly, a regulatory flexibility analysis under the Regulatory Flexibility Act is not required.
IV. Section 7805(f)
Pursuant to section 7805(f) of the
Code, the notice of proposed rulemaking
was submitted to the Chief Counsel for
Advocacy of the Small Business Administration for comment on their impact on
small business, and no comments were
received.

362

V. Unfunded Mandates Reform Act
Section 202 of the Unfunded Mandates Reform Act of 1995 requires that
agencies assess anticipated costs and
benefits and take certain other actions
before issuing a final rule that includes
any Federal mandate that may result
in expenditures in any one year by a
State, local, or Tribal government, in
the aggregate, or by the private sector,
of $100 million in 1995 dollars, updated
annually for inflation. The final regulations do not include any Federal mandate that may result in expenditures by
State, local, or Tribal governments, or
by the private sector in excess of that
threshold.
VI. Executive Order 13132: Federalism
Executive Order 13132 (entitled
“Federalism”) prohibits an agency from
publishing any rule that has federalism
implications if the rule either imposes
substantial, direct compliance costs on
State and local governments, and is not
required by statute, or preempts State law,
unless the agency meets the consultation
and funding requirements of section 6 of
the Executive order. The final regulations
do not have federalism implications and
do not impose substantial direct compliance costs on State and local governments
or preempt State law within the meaning
of the Executive order.
Drafting Information
The principal authors of these final
regulations are D. Peter Merkel and Sheila
Ramaswamy of the Office of Associate
Chief Counsel (International). However,
other personnel from the Treasury Department and the IRS 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, the Treasury Department
and IRS amend 26 CFR part 1 as follows:

Bulletin No. 2026–4

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 * * *
§ 1.59A-2 [Amended]
Par. 2. Section 1.59A-2 is amended
by removing the language Ҥ 1.59A-3(b)
(2)(iii)” from the last sentence of paragraph (e)(3)(vi) and adding the language
“§ 1.59A-3(b)(2)(iv)” in its place.
Par. 3. Section 1.59A-3 is amended by
revising paragraph (b)(2)(iv) to read as
follows:
§1.59A-3 Base erosion payments and
base erosion tax benefits.
*****
(b) * * *
(2) * * *
(iv) Amounts paid or accrued with
respect to mark-to-market positions—
(A) In general. For any transaction with
respect to which the taxpayer applies the
mark-to-market method of accounting
for U.S. Federal income tax purposes, the
rules set forth in § 1.59A-2(e)(3)(vi) apply
to determine the amount of the base erosion payment.
(B) Application of the base erosion and
anti-abuse tax (“BEAT”) netting rule to
securities lending transactions. Notwithstanding paragraph (b)(2)(iv)(A) of this
section, mark-to-market gains and losses
from the securities leg of a securities lending transaction as defined in §§ 1.8612(a)(7) and 1.861-3(a)(6) are not taken
into account when applying § 1.59A-2(e)
(3)(vi) for purposes of determining the
amount of a taxpayer’s base erosion payment. Mark-to market gains and losses
from the securities leg of a securities
lending transaction are the ordinary gains
and losses that a taxpayer recognizes with
respect to the transaction by treating the
taxpayer’s position in the transaction as
having been sold for its fair market value
on the last business day of the taxable year
(and any additional times as required by
the Internal Revenue Code or the taxpayer’s method of accounting). See § 1.59A6(b)(1)(i). When determining the amount
of the taxpayer’s base erosion payment,

Bulletin No. 2026–4

items of income, gain, loss, or deduction
that relate to the securities leg of a securities lending transaction, such as substitute payments defined in §§ 1.861-2(a)(7)
and 1.861-3(a)(6) and borrow fees, must
be taken into account on a consistent basis
that does not result in the duplication or
omission of these amounts. For purposes
of the immediately preceding sentence,
the term items of income, gain, loss, or
deduction that relate to the securities leg
of a securities lending transaction does
not include delivery of the securities to,
or receipt of securities from, the lender.
This paragraph (b)(2)(iv)(B) applies to
a taxpayer that is either the borrower or
lender with respect to the securities lending transaction.
*****
Par. 4. Section 1.59A-6 is amended by
adding paragraphs (b)(3)(iii) and (iv) to
read as follows:
§1.59A-6 Qualified derivative payment.
*****
(b) * * *
(3) * * *
(iii) Special rule for mark-to-market
gains and losses on the securities leg of
a securities lending transaction—(A)
In general. The amount of any qualified
derivative payment with respect to the
securities leg of a securities lending transaction as defined in §§ 1.861-2(a)(7) and
1.861-3(a)(6) that is excluded from the
denominator of the base erosion percentage is determined under § 1.59A-3(b)(2)
(iv)(B). The securities leg of a securities
lending transaction refers to the rights,
obligations, and transfers of securities and
payments under the transaction other than
the obligation to provide or right to receive
cash collateral and interest thereon. Pursuant to § 1.59A-3(b)(2)(iv)(B), mark-tomarket gains and losses on a securities leg
of a securities lending transaction are not
included in determining the amount of the
qualified derivative payment with respect
to that security. Thus, the amount of the
qualified derivative payment with respect
to the securities leg of a securities lending
transaction is determined by taking into
account only other items of income, gain,
loss, or deduction during the taxable year
that relate to the securities leg, such as
substitute payments defined in §§ 1.861-

363

2(a)(7) and 1.861-3(a)(6) and borrow fees.
This paragraph (b)(3)(iii)(A) applies to
a taxpayer that is either the borrower or
lender with respect to the securities lending transaction.
(B) Examples. The following examples
illustrate the application of this paragraph
(b)(3)(iii).

(1) Example 1: Securities loan—(i) Facts. FP is
a foreign corporation that owns all of the shares of
DC, a domestic corporation. FP is a foreign related
party of DC under § 1.59A-1(b)(12). DC is a registered securities dealer. On September 1 of year 1,
DC enters into a securities lending transaction with
FP in which it borrows stock from FP. DC provides
cash collateral for the loan and receives a rebate on
that collateral from FP. On September 1, year 1, the
stock has a value of $100x. On November 1, year 1, a
dividend of $1x is paid by the issuer on the stock. DC
pays a substitute dividend of $1x to FP on November
1, year 1 under the terms of the securities loan. There
are no other payments made or received in year 1. On
December 31, year 1, the stock has a value of $106x.
DC is required to mark-to-market the securities leg
of the securities lending transaction for U.S. Federal
income tax purposes. DC is a calendar year taxpayer.
(ii) Analysis. DC has a deduction of $1x as a
result of the substitute dividend it pays to FP. Assuming that the securities lending transaction otherwise
meets the requirements of this section (including
reporting the information required by § 1.6038A2(b)(7)(ix)), the amount of DC’s qualified derivative payment with respect to the securities lending
transaction is $1x. Payments with respect to the
cash collateral are not treated as part of the securities lending transaction. See paragraph (d)(2)(iii)(B)
of this section. With respect to the securities leg of
the securities lending transaction, DC has a mark-tomarket loss of ($6x). Under paragraph (b)(3)(iii)(A)
of this section, the amount of this mark-to-market
loss is not included when determining the amount
of the qualified derivative payment. Under § 1.59A3(b)(2)(iv)(B), DC’s ($6x) mark-to-market loss on
the securities leg of the securities lending transaction also is not taken into account in determining
the base erosion tax benefit amount for purposes of
the numerator of the base erosion percentage. The
($6x) loss is taken into account in the denominator
of the base erosion percentage, while the $1x substitute dividend payment is not taken into account for
that purpose because it is a qualified derivative payment. See § 1.59A-2(e)(3)(ii)(C) and (e)(3)(vi). The
amount of the qualified derivative payment would be
the same if the lender paid a rebate on the cash collateral in year 1, without regard to whether the parties
agree to pay and receive a net payment reflecting the
difference between the amount of the rebate and the
amount of the substitute payment.
(2) Example 2: Securities loan. The facts are the
same as in paragraph (b)(3)(iii)(B)(1) of this section
(Example 1) except that on December 31, year 1, the
stock has a value of $94x. With respect to the securities leg of the securities lending transaction, DC has
a mark-to-market gain of $6x. Under paragraph (b)
(3)(iii)(A) of this section, the amount of this markto-market gain is not included when determining
the amount of the qualified derivative payment. DC

January 20, 2026

has a deduction of $1x as a result of the substitute
dividend payment it makes to FP. Assuming that the
securities lending transaction otherwise meets the
requirements of this section (including reporting the
information required by § 1.6038A-2(b)(7)(ix)), the
amount of DC’s qualified derivative payment with
respect to the securities lending transaction is $1x.
Neither the $6x gain nor the $1x substitute dividend
payment, which is a qualified derivative payment,
are taken into account in the denominator of the base
erosion percentage.
(iv) Rule for determining the amount of a substitute payment or other payment paid with respect to
a securities lending transaction to a foreign related
party—(A) In general. When a taxpayer makes a
substitute payment as defined in § 1.861-2(a)(7) or
§ 1.861-3(a)(6) or other payment with respect to the
securities leg of a securities lending transaction, the
taxpayer must determine whether the substitute payment or other payment is paid to a foreign related
party. The amount of the substitute payment or other
payment paid by the taxpayer to a foreign related
party is determined under either paragraph (b)(3)(iv)
(B) or (C) of this section.
(B) Specific identification method. The taxpayer
may determine the amount of the substitute payments
or other payments with respect to the securities leg of
a securities lending transaction that it has paid to foreign related parties by using the amount actually paid
by the taxpayer to the foreign related parties if the
taxpayer can specifically identify all recipients of the
substitute payments or other payments paid by the
taxpayer during the taxable year with respect to the
securities leg of a securities lending transaction or
the taxpayer can specifically identify the payor for all
substitute payments or other payments received by
foreign related parties during the taxable year with
respect to the securities leg of a securities lending
transaction.
(C) Alternative method. If the taxpayer has
paid any substitute payment or other payment with
respect to the securities leg of a securities lending
transaction to which the taxpayer cannot apply paragraph (b)(3)(iv)(B) of this section, the taxpayer must
use the methodology provided in this paragraph (b)
(3)(iv)(C).
(1) Step 1: Determining the total amount of
substitute payments and other payments received
by foreign related parties. The taxpayer must determine the total amount of substitute payments and
other payments with respect to the securities leg of
a securities lending transaction received by all foreign related parties of the taxpayer during the taxable
year.
(2) Step 2: Determining the total amount of substitute payments and other payments paid by taxpayer. The taxpayer must determine the total amount
of substitute payments and other payments with
respect to the securities leg of a securities lending
transaction paid by the taxpayer during the taxable
year.
(3) Step 3: Determining the amount of substitute
payments and other payments paid by the taxpayer
to foreign related parties. The amount of substitute
payments and other payments with respect to the
securities leg of a securities lending transaction paid

January 20, 2026

by the taxpayer is treated as being paid first to foreign
related parties of the taxpayer up to the total amount
of substitute payments and other payments with
respect to the securities leg of a securities lending
transaction received by foreign related parties. Any
amount of substitute payments and other payments
with respect to the securities leg of a securities lending transaction paid by the taxpayer that exceeds the
amount of substitute payments and other payments
received by foreign related parties is treated as paid
to unrelated parties for purposes of this paragraph (b)
(3)(iv)(C)(3).
(D) Example—(1) Facts. FP is a foreign corporation that owns all of the shares of DC, a domestic
corporation, and all of the shares of several foreign
subsidiaries. FP and its foreign subsidiaries are foreign related parties of DC under § 1.59A-1(b)(12).
DC is a registered securities dealer. DC enters into
securities lending transactions pursuant to which it
borrows securities both from foreign affiliates that
are members of the FP controlled group and from
unrelated customers. DC obtains the securities from
a common pool of available securities that includes
securities from DC’s U.S. customer accounts as well
as securities held by members of the FP controlled
group for their own account and for the account
of customers. DC is unable to determine from its
records either the identities of the counterparties
from which DC has borrowed securities or whether
it has entered into a securities lending transaction
with a foreign affiliate. In year 1, DC makes substitute payments of $500x in aggregate with respect
to the securities lending transactions. DC’s foreign
affiliates receive substitute payments in year 1 totaling $100x. Because DC cannot determine whether it
has entered into a securities lending transaction with
a foreign affiliate, DC does not know what portion
of the $100x received by DC’s foreign affiliates was
paid by DC.
(2) Analysis. Because DC is unable to determine
the actual amount of substitute payments it has paid
to DC’s foreign affiliates, DC cannot use the specific
identification method of paragraph (b)(3)(iv)(B) of
this section to determine the amount of substitute
payments it has paid to foreign related parties for
QDP reporting purposes. Instead, DC must use the
alternative method set forth in paragraph (b)(3)(iv)
(C) of this section to determine the amount of substitute payments treated as made to foreign related
party recipients. Under Step 1, DC determines that
its foreign affiliates have received substitute payments of $100x. Under Step 2, DC determines that it
has paid substitute payments totaling $500x. Under
Step 3, DC is treated as having paid substitute payments to its foreign affiliates of $100x, up to the total
amount of substitute payments they received in year
1. The remaining $400x of substitute payments paid
by DC is treated as having been paid to unrelated
parties for purposes of paragraph (b)(3)(iv)(C)(3) of
this section.

*****
Par. 5. Section 1.59A-10 is amended
by revising paragraph (a) and adding paragraph (c) to read as follows:

364

§1.59A-10 Applicability date.
(a) General applicability date. Sections 1.59A-1 through 1.59A-9, other
than the provisions described in the first
sentence of paragraph (b) of this section or in paragraph (c) of this section,
apply to taxable years ending on or after
December 17, 2018. However, taxpayers may apply the regulations in this
paragraph (a) in their entirety for taxable
years beginning after December 31, 2017,
and ending before December 17, 2018. In
lieu of applying the regulations referred
to in the first sentence of this paragraph
(a), taxpayers may apply the provisions
matching §§ 1.59A-1 through 1.59A-9
from the Internal Revenue Bulletin (IRB)
2019-02 (https://www.irs.gov/irb/201902_IRB) in their entirety for all taxable
years beginning after December 31,
2017, and ending on or before December
6, 2019.
*****
(c) Additional applicability dates for
certain rules relating to securities lending transactions. Sections 1.59A-3(b)(2)
(iv) and 1.59A-6(b)(3)(iii) and (iv) apply
to taxable years beginning on or after
December 17, 2025.
Par. 6. Section 1.6038A-2 is amended
by revising the third sentence of paragraph
(g) to read as follows:
§1.6038A-2 Requirement of return.
*****
(g) * * * Paragraph (b)(7)(ix) of this
section applies to payments made in taxable years beginning on or after January
1, 2027. * * *
Frank J. Bisignano,
Chief Executive Officer.
Approved: October 30, 2025
Kenneth J. Kies,
Assistant Secretary of the Treasury (Tax
Policy).
(Filed by the Office of the Federal Register December 17, 2025, 8:45 a.m., and published in the issue
of the Federal Register for December 18, 2025, 90
FR 59046)

Bulletin No. 2026–4

Part III
Safe Harbor for the
Credit for Carbon Oxide
Sequestration under
Section 45Q for Qualified
Carbon Oxide Disposed
of in Secure Geological
Storage in Calendar Year
2025

ical storage after the 2025 calendar year.
Taxpayers may rely on the safe harbor and
guidance described in section 3 of this
notice to demonstrate compliance with
the subpart RR requirements of § 1.45Q3(b)(1)(ii) or 1.45Q-2(h)(5)(iii), as applicable, and § 1.45Q-3(d), for purposes of
determining the § 45Q credit with respect
to 2025 Calendar Year Secure Geological
Storage.

Notice 2026-1

SECTION 2. BACKGROUND

SECTION 1. PURPOSE
This notice provides interim guidance,
pending the issuance of forthcoming proposed regulations, relating to the credit for
carbon oxide sequestration under section
45Q (§ 45Q credit) of the Internal Revenue Code (Code)1 in light of the Environmental Protection Agency’s (EPA)
proposed regulations to remove reporting obligations regarding the geological
sequestration of carbon dioxide imposed
under subpart RR of 40 CFR part 98 (subpart RR). See 90 F.R. 44591 (Sept. 16,
2025). Specifically, this notice provides
a safe harbor for determining eligibility
for the § 45Q credit for qualified carbon
oxide that is captured and disposed of in
secure geological storage (and carbon
oxide described in § 1.45Q-2(h)(5)) and
not used as a tertiary injectant in a qualified enhanced oil or natural gas recovery
project during calendar year 2025 (Calendar Year 2025 Secure Geological Storage) in the event the EPA does not launch
the electronic Greenhouse Gas Reporting
Tool (e-GGRT) for filers to prepare and
submit information required under subpart RR for reporting year 2025 by June
10, 2026. The Department of the Treasury
(Treasury Department) and the Internal
Revenue Service (IRS) expect that the
forthcoming proposed regulations will
propose updated requirements for taxpayers claiming the credit for secure geolog-

.01 Section 45Q
(1) Section 45Q was added to the Code
by § 115 of Division B of the Energy
Improvement and Extension Act of 2008,
Pub. L. 110-343, 122 Stat. 3765, 3829
(Oct. 3, 2008). Section 45Q was amended
a number of times thereafter, including
most recently by § 70522 of Public Law
119-21, 139 Stat. 72, 279 (July 4, 2025),
commonly known as the One, Big, Beautiful Bill Act (OBBBA).2
(2) Section 45Q(a)(1) allows a credit
of $20 per metric ton of qualified carbon
oxide (i) captured by the taxpayer using
carbon capture equipment which is originally placed in service at a qualified facility before February 9, 2018; (ii) disposed
of by the taxpayer in secure geological
storage; and (iii) neither used by the taxpayer as a tertiary injectant in a qualified
enhanced oil or natural gas recovery project nor utilized in a manner described in
section 45Q(f)(5).
(3) Section 45Q(a)(2) allows a credit
of $10 per metric ton of qualified carbon oxide (i) captured by the taxpayer
using carbon capture equipment which
is originally placed in service at a qualified facility before February 9, 2018; and
(ii) either (A) used by the taxpayer as a
tertiary injectant in a qualified enhanced
oil or natural gas recovery project and
disposed of by the taxpayer in secure
geological storage; or (B) utilized by the
taxpayer in a manner described in section
45Q(f)(5).

(4) Section 45Q(a)(3) allows a credit
of the applicable dollar amount (as determined under section 45Q(b)(1)) per metric
ton of qualified carbon oxide captured by
the taxpayer using carbon capture equipment which is originally placed in service
at a qualified facility on or after February
9, 2018, during the 12-year period beginning on the date the equipment was originally placed in service, and (i) disposed of
by the taxpayer in secure geological storage, (ii) used by the taxpayer as a tertiary
injectant in a qualified enhanced oil or
natural gas recovery project and disposed
of by the taxpayer in secure geological
storage, or (iii) utilized by the taxpayer in
a manner described in section 45Q(f)(5).
(5) Section 45Q(f)(2) directs the Secretary of the Treasury or the Secretary’s
delegate (Secretary), in consultation with
the EPA, the Secretary of Energy, and
the Secretary of the Interior, to establish
regulations for determining adequate
security measures for the geological storage of qualified carbon oxide under section 45Q(a) such that the qualified carbon
oxide does not escape into the atmosphere.
Section 45Q(f)(2) further provides that
the term “geological storage of qualified
carbon oxide” includes storage at deep
saline formations, oil and gas reservoirs,
and unminable coal seams under such
conditions as the Secretary may determine
under such regulations.
(6) On June 2, 2020, the Treasury
Department and the IRS published a
notice of proposed rulemaking (REG112339-19) in the Federal Register (85
F.R. 34050) under section 45Q. After
consideration of all comments received in
response to the proposed regulations, on
January 15, 2021, the Treasury Department and the IRS, in consultation with
the EPA, Department of Energy, and the
Department of the Interior, published final
regulations in the Federal Register under
section 45Q. See T.D. 9944; 86 F.R. 4728,
as corrected in 86 F.R. 16530 (March 30,
2021).

Unless otherwise specified, all “section” or “§” references are to the Code or the Income Tax Regulations (26 CFR part 1).
Section 70522 of the OBBBA modified section 45Q to disallow the credit if the taxpayer is a specified foreign entity as defined in section 7701(a)(51)(B) of the Code or a foreign influenced
entity as defined in section 7701(a)(51)(D), determined without regard to clause (i)(II) thereof, for taxable years beginning after July 4, 2025. Section 70522 of the OBBBA also modified
section 45Q to establish parity between the credit amount for the different uses and utilization of qualified carbon oxide and the credit amount for disposal in secure geological storage for
facilities or equipment placed in service after July 4, 2025.
1
2

Bulletin No. 2026–4

365

January 20, 2026

(7) Section 1.45Q-3(a) provides that,
in general, to qualify for the § 45Q credit,
a taxpayer must either physically or contractually dispose of captured qualified
carbon oxide in secure geological storage
in the manner provided in § 1.45Q-3(b),
or utilize qualified carbon oxide in a manner conforming with section 45Q(f)(5)
and § 1.45Q-4. Secure geological storage
includes, but is not limited to, storage at
deep saline formations, oil and gas reservoirs, and unminable coal seams.
(8) Section 1.45Q-3(b) provides that
for purposes of the § 45Q credit, qualified
carbon oxide is considered disposed of
by the taxpayer in secure geological storage such that the qualified carbon oxide
does not escape into the atmosphere if
the qualified carbon oxide is (1) injected
into a well that (i) complies with applicable Underground Injection Control or
other regulations, located onshore or offshore under submerged lands within the
territorial jurisdiction of States or federal
waters, and (ii) is not used as a tertiary
injectant in a qualified enhanced oil or
natural gas recovery project, in compliance with applicable requirements under
subpart RR; or (2) injected into a well
that (i) complies with applicable Underground Injection Control or other regulations, is located onshore or offshore under
submerged lands within the territorial
jurisdiction of States or Federal waters,
and (ii) is used as a tertiary injectant in
a qualified enhanced oil or natural gas
recovery project and stored in compliance with applicable requirements under
subpart RR, or the International Organization for Standardization (ISO) standards
endorsed by the American National Standards Institute (ANSI) under CSA/ANSI
ISO 27916:2019, Carbon dioxide capture,
transportation and geological storage—
Carbon dioxide storage using enhanced
oil recovery (CO2-EOR) (CSA/ANSI ISO
27916:2019).
(9) Section 1.45Q-2(h)(5) provides
that, in general, carbon oxide that is
injected into an oil reservoir that is not
a qualified enhanced oil recovery project
under section 43(c)(2) of the Code due to
circumstances such as the first injection
of a tertiary injectant occurring before
1991, or because a petroleum engineer’s
certification was not timely filed, cannot
be treated as qualified carbon oxide, dis-

January 20, 2026

posed of in secure geological storage, or
utilized in a manner described in section
45Q(f)(5). Section 1.45Q-2(h)(5) does not
apply to an oil reservoir if: (i) the reservoir
has permanently ceased oil production;
(ii) the operator has obtained an Underground Injection Control Class VI permit;
and (iii) the operator complies with subpart RR.
(10) Section 1.45Q-3(d) provides that
for qualified enhanced oil or natural gas
recovery projects in which the taxpayer
reported volumes of carbon oxide to the
EPA pursuant to subpart RR, the taxpayer
may self-certify the volume of qualified
carbon oxide claimed for purposes of
section 45Q. For qualified enhanced oil
or natural gas recovery projects in which
the taxpayer determined volumes pursuant to CSA/ANSI ISO 27916:2019, a
taxpayer may prepare documentation as
outlined in CSA/ANSI ISO 27916:2019
internally, but all such documentation
must be provided to a qualified independent engineer or geologist, who then
must certify that the documentation provided, including the mass balance calculations as well as information regarding
monitoring and containment assurance,
is accurate and complete. The qualified
independent engineer or geologist certifying a project must be duly registered
or certified in any State. The certification
must contain an affidavit from the certifying engineer or geologist stating that he
or she is independent from the taxpayer
(and if an election under section 45Q(f)
(3)(B) has been made, the affidavit must
state that he or she is independent from
both the electing taxpayer and the credit
claimant). Certifications must be made
annually and under penalties of perjury.
For any leaked amount of qualified carbon oxide (as defined in § 1.45Q-5(c))
that is determined pursuant to CSA/ANSI
ISO 27916:2019, the certification must
also include a statement that the quantity
was determined in accordance with sound
engineering principles. Taxpayers that
capture and dispose of qualified carbon
oxide giving rise to the § 45Q credit must
file Form 8933, Carbon Oxide Sequestration Credit, with a timely filed Federal
income tax return or Form 1065, U.S.
Return of Partnership Income, including extensions or amendments to Federal
income tax returns, Forms 1065, or on

366

administrative adjustment requests under
section 6227 (AARs), as applicable.
.02 EPA Regulations
(1) Under the Safe Drinking Water
Act and regulations promulgated thereunder, injection of carbon dioxide into any
underground reservoir requires the operator to comply with Underground Injection
Control (UIC) program regulations and to
obtain the appropriate UIC well permits.
The UIC program is designed to protect
underground sources of drinking water
from underground injection. Under 40
CFR § 146.5 (Classification of injection
wells), Class VI is an appropriate UIC
well permit for wells that are not experimental in nature and that are used for
geologic sequestration of carbon dioxide
beneath the lowermost formation containing an underground source of drinking
water; for wells used for geologic sequestration of carbon dioxide that have been
granted a waiver of the injection depth
requirements pursuant to requirements at
40 CFR 146.95; or for wells used for geologic sequestration of carbon dioxide that
have received an expansion to the areal
extent of an existing Class II enhanced oil
recovery or enhanced gas recovery aquifer
exemption pursuant to 40 CFR §§ 146.4
and 144.7(d).
(2) Operators that inject carbon dioxide underground are also subject to the
EPA’s Greenhouse Gas Reporting Program (GHGRP) requirements set forth
at 40 CFR Part 98. Under 40 CFR Part
98, facilities that inject carbon dioxide
underground for long-term containment
of carbon dioxide in subsurface geologic
formations are specifically subject to subpart RR (Geologic Sequestration of Carbon Dioxide source category). Facilities
that are subject to subpart RR, including
UIC Class VI wells, are required to report
basic information on carbon dioxide
received for injection, develop and implement an EPA-approved site-specific Monitoring, Reporting, and Verification Plan,
and report the amount of carbon dioxide
geologically sequestered using a mass
balance approach and annual monitoring
activities. Such reports under subpart RR
must be prepared on a calendar year basis
(Annual Reports).
(3) Annual Reports generally must
be submitted no later than March 31 of
each calendar year for greenhouse gas

Bulletin No. 2026–4

emissions in the previous calendar year.
40 CFR § 98.3(b). Annual Reports are
required to be submitted electronically in
a format specified by the Administrator
of the EPA. 40 CFR § 98.5(a). The EPA
generally requires Annual Reports to be
submitted through the EPA’s electronic
reporting system, e-GGRT. Historically,
the EPA has launched the e-GGRT system
in mid-February for a given reporting year.
See EPA, “Extending the Reporting Deadline Under the Greenhouse Gas Reporting Rule for 2024 Data,” 90 F.R. 13085,
13087 (March 20, 2025). Annual Reports
undergo verification by the EPA, and
non-confidential data from these reports
are published on the EPA’s website.
(4) On September 16, 2025, the EPA
issued proposed regulations, Reconsideration of the Greenhouse Gas Reporting
Program, 90 F.R. 44591, proposing to
amend the GHGRP to remove program
obligations for most source categories,
including the obligations in subpart RR,
for reporting years after 2024. The proposed regulations would also revise 40
CFR Part 98 subpart A to extend the Part
98 (including subpart RR) reporting deadline for reporting year 2025 from March
31, 2026, to June 10, 2026. The EPA has
proposed that the amendments, if finalized, would become effective within sixty
days of publication in the Federal Register. Because the proposed amendments
would remove the reporting obligations
under subpart RR following reporting
year 2024, reporters would cease submitting Annual Reports within sixty days of
publication of the final rule in the Federal
Register. 90 F.R. at 44603.
SECTION 3. SAFE HARBOR FOR
CALENDAR YEAR 2025 SECURE
GEOLOGICAL STORAGE
.01 In General. This section describes a
safe harbor that taxpayers may use to satisfy the requirements of § 1.45Q-3(b)(1)
(ii) or § 1.45Q-2(h)(5)(iii), as applicable,
and § 1.45Q-3(d), for Calendar Year 2025
Secure Geological Storage in the event
the EPA does not launch the e-GGRT for
reporting year 2025 by June 10, 2026
(2025 Safe Harbor). The 2025 Safe Harbor does not apply to such storage in the
event the EPA launches the e-GGRT for
reporting year 2025 by June 10, 2026.

Bulletin No. 2026–4

.02 2025 Safe Harbor.
(1) In general. Taxpayers following
the guidance set forth in sections 3.02(2)
and 3.02(3) of this notice will be considered to have satisfied (i) the requirement
in §1.45Q-3(b)(1)(ii) or § 1.45Q-2(h)(5)
(iii), as applicable, related to subpart RR
(§ 45Q Subpart RR Requirement); and (ii)
the requirements of § 1.45Q-3(d) (Certification Requirements).
(2) Compliance with § 45Q Subpart RR
Requirement. In the event the EPA does
not launch the e-GGRT for reporting year
2025 by June 10, 2026, for Calendar Year
2025 Secure Geological Storage, such
storage will be considered to have satisfied the § 45Q Subpart RR Requirement if
(i) such storage is in compliance with the
applicable requirements of subpart RR as
in effect on December 31, 2025, and (ii)
instead of submitting the Annual Report
for reporting year 2025 with respect to
such storage through the e-GGRT pursuant
to 40 CFR §§ 98.3 and 98.5, the taxpayer
prepares and submits the Annual Report
to an independent engineer or geologist,
who certifies the Annual Report, in the
manner specified in section 3.02(3)(A)
and (B) of this notice. The Annual Report
for reporting year 2025 must contain all
of the information and documentation,
including mass balance accounting calculations and monitoring and containment
assurance, that would have been required
under subpart RR as in effect on December 31, 2025.
(3) Compliance with Certification
Requirements. Calendar Year 2025 Secure
Geological Storage will be considered to
have satisfied the Certification Requirements of § 1.45Q-3(d) if the taxpayer satisfies the requirements of section 3.02(3)
(A) and (B) of this notice with respect to
such storage.
(A) The taxpayer must submit the
Annual Report for reporting year 2025 to
a qualified independent engineer or geologist. The qualified independent engineer
or geologist certifying the information
must be duly registered or certified in any
State.
(B) The qualified independent engineer
or geologist must certify that (i) the capture and disposal described in § 1.45Q3(b)(1) or § 1.45Q-2(h)(5), as applicable,
is in compliance with subpart RR as in
effect on December 31, 2025, and (ii) the

367

information and documentation contained
in the Annual Report for reporting year
2025 is accurate and complete based upon
the requirements under subpart RR as in
effect on December 31, 2025. The certification must contain an affidavit from
the certifying engineer or geologist stating that he or she is independent from the
taxpayer (and if an election under section
45Q(f)(3)(B) has been made, the affidavit
must state that he or she is independent
from both the electing taxpayer and the
credit claimant). The certification must be
made under penalties of perjury.
.03 Timely reporting. Taxpayers that
capture and dispose of qualified carbon
oxide giving rise to the § 45Q credit must
file Form 8933 with a timely filed Federal
income tax return or Form 1065, including extensions, or amendments to Federal
income tax returns, Forms 1065, or on
AARs, as applicable. In order to rely upon
the 2025 Safe Harbor, a taxpayer must
complete all documentation and obtain the
certification described in section 3.02(2)
and (3) of this notice by the time it (or
if an election under § 45Q(f)(3)(B) has
been made, any credit claimant) timely
files its relevant tax return, as described in
the preceding sentence. Taxpayers should
retain the documentation and certification
described in section 3.02(2) and (3) of this
notice in their books and records pursuant to § 6001. See also T.D. 9944; 86 F.R.
4728, 4758-59.
SECTION 4. PAPERWORK
REDUCTION ACT
The collection of information contained in this notice has been submitted to
the Office of Management and Budget in
accordance with the Paperwork Reduction
Act (44 U.S.C. § 3507). The estimated
burden for individual filers is approved
under OMB control number 1545-0074;
for business filers, it is approved under
OMB control number 1545-0123; and for
trust filers, it is approved under OMB control number 1545-0092.
An agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
OMB control number.
The collections of information in this
notice are in section 3 of this notice. This

January 20, 2026

information is required to certify the volume of qualified carbon oxide disposed of
in secure geological storage for the purpose of claiming the § 45Q credit. This
information will be used by the IRS to
verify that the taxpayer is eligible for the
§ 45Q credit. The collection of information is required to obtain a benefit. The
likely respondents are businesses or other
for-profit institutions.
Books or records relating to a collection of information must be retained as
long as their contents may become material in the administration of any internal
revenue law. Generally, tax returns and
tax return information are confidential, as
required by § 6103.
SECTION 5. APPLICABILITY DATE
This notice applies with respect to Calendar Year 2025 Secure Geological Storage in the event the EPA does not launch
the e-GGRT for reporting year 2025 by
June 10, 2026. Taxpayers claiming the
§ 45Q credit for Calendar Year 2025
Secure Geological Storage may rely upon
this notice to satisfy the requirements of
§ 1.45Q-3(b)(1)(ii) or 1.45Q-2(h)(5)(iii),
as applicable, and § 1.45Q-3(d).
SECTION 6. DRAFTING
INFORMATION
The principal author of this notice is
the Office of Associate Chief Counsel
(Energy, Credits, and Excise Tax). For further information regarding this notice contact (202) 317-6853 (not a toll-free call).

Notice of Issuance of
Revenue Procedure
2026-8 Regarding Group
Exemption Letter Program
Notice 2026-8
SECTION I. PURPOSE
This notice discusses the comments
received in response to the proposed rev1

enue procedure set forth in Notice 202036, 2020-21 I.R.B. 840, along with the
modifications made in response to those
comments and other significant revisions
made by the Department of the Treasury
(Treasury Department) and the Internal
Revenue Service (IRS) to the proposed
revenue procedure, which is published
in final form as Rev. Proc. 2026-8, in this
Bulletin.
SECTION II. BACKGROUND
On May 18, 2020, the Treasury Department and the IRS published Notice 202036, which contained a proposed revenue
procedure to modify and supersede Rev.
Proc. 80-27, 1980-1 C.B. 677 (as modified
by Rev. Proc. 96-40, 1996-2 C.B. 301).
The proposed revenue procedure provided
updated procedures for a central organization described in § 501(c) of the Internal
Revenue Code (Code)1 to obtain recognition of exemption from federal income tax
on a group basis for subordinate organizations described in § 501(c) that are affiliated with and under the general supervision or control of the central organization.
The proposed revenue procedure also
set forth updated procedures that a central organization would need to follow to
maintain a group exemption letter. Under
Notice 2020-36, the IRS stopped accepting applications for group exemption letters (group applications) starting on June
17, 2020 (30 days after the notice was
published in the Internal Revenue Bulletin). As explained in section 2.08 of Rev.
Proc. 2026-8, the IRS resumed accepting
group applications after January 20, 2026,
the date of its publication in the Internal
Revenue Bulletin.
Notice 2020-36 requested comments
on all aspects of the proposed revenue
procedure because the Treasury Department and the IRS recognized that many
of the updated provisions substantially
differed from the procedures set forth in
Rev. Proc. 80-27. The Treasury Department and the IRS also recognized that the
new procedures might impose additional
administrative burdens on existing central
organizations and wanted to afford those
organizations an opportunity to comment
on the updated procedures. Notice 2020-

36 specifically requested comments on the
following:
• the administrative burden imposed
by the collections of information in
sections 3.02(3) (certain information
a central organization that exercises
general supervision over its subordinate organizations must annually
collect from its subordinate organizations and transmit to its subordinate
organizations), 3.05 (authorization
for initial inclusion in or subsequent
addition to a group exemption letter
as a subordinate organization), and 6
(Supplemental Group Ruling Information or SGRI) of the proposed revenue procedure;
• factors indicating that a subordinate
organization is affiliated with a central organization for purposes of section 3.02(2) of the proposed revenue
procedure (description of affiliation);
and
• whether central organizations with
more than one preexisting group
exemption letter would benefit from
procedures permitting the consolidation or transfer of one or more preexisting group exemption letters.
SECTION III. COMMENT
SUMMARY AND CHANGES
TO THE PROPOSED REVENUE
PROCEDURE
This section III summarizes the major
provisions of the proposed revenue procedure, the substantive comments submitted
in response to the proposed revenue procedure, and the material changes to the
proposed revenue procedure that are incorporated in Rev. Proc. 2026-8. The Treasury
Department and the IRS received 29 written comments in response to Notice 202036. The comments are available for public
inspection upon request. Feedback in those
comments informed the development of the
finalized procedures in Rev. Proc. 2026-8.
.01 Minimum Number of Subordinate
Organizations Requirement.
Section 3.01(2) of the proposed revenue procedure required a central organization to have at least five subordinate
organizations to obtain a group exemption
letter and at least one subordinate orga-

Unless otherwise specified, all “Section” or “§” references are to sections of the Code.

January 20, 2026

368

Bulletin No. 2026–4

nization to maintain a group exemption
letter thereafter. One commenter recommended eliminating the first requirement,
stating that it would discourage the use of
group exemptions by making it more difficult for a central organization to recruit
enough subordinate organizations to
obtain a group exemption letter.
The Treasury Department and the IRS
disagree with this comment. As explained
in Notice 2020-36, the requirement for a
central organization to have a minimum
number of subordinate organizations to
obtain a group exemption letter is due to
the administrative burden that processing
group applications imposes on the IRS.
Notice 2020-36 noted that the administrative burden of processing one group
application is comparable to the administrative burden of processing four individual exemption applications. Eliminating
the requirement that a central organization have five subordinate organizations
to obtain a group exemption letter would
render the group exemption letter program
inefficient in circumstances where a group
application includes fewer than five subordinate organizations. Accordingly, section 4.01(2) of Rev. Proc. 2026-8 retains
the requirement that a central organization
have five subordinate organizations to
obtain a group exemption letter because
it appropriately balances the burdens
the IRS faces in administering the group
exemption letter program and the burdens
central organizations face in complying
with the requirements to obtain the benefits of the group exemption letter program.
.02 Central Organizations Maintaining
More Than One Group Exemption Letter.
Section 3.01(3) of the proposed revenue procedure prohibited a central organization from maintaining more than one
group exemption letter. Several commenters objected to this provision, claiming
that it would decrease transparency and
place significant administrative burdens
on a central organization, particularly if
coupled with the proposed revenue procedure’s requirements involving matching,
foundation classification, and uniform
governing instruments.
As noted in Notice 2020-36, restricting
the number of group exemption letters a
central organization can maintain is necessary because traditionally, the IRS’s electronic databases have not systematically

Bulletin No. 2026–4

tracked more than one group exemption
letter per central organization. Moreover,
maintaining more than one group exemption letter may adversely affect a central
organization’s ability to exercise general
supervision or control over its subordinate organizations. Accordingly, section
4.01(3) of Rev. Proc. 2026-8 continues to
prohibit a central organization from maintaining more than one group exemption
letter. The commenters’ concerns about
the administrative burden of the prohibition on maintaining more than one group
exemption letter given the proposed revenue procedure’s requirements involving matching, foundation classification,
and uniform governing instruments are
addressed by the revisions to those provisions discussed in sections III.08, III.09,
and III.11 of this notice.
.03 Affiliation Requirement.
Section 3.02(1) and (2) of the proposed
revenue procedure required a central organization to establish that each subordinate
organization to be included in the group
exemption letter is affiliated with the central organization and stated that a subordinate organization’s affiliation with the
central organization is demonstrated by
the entirety of the information required
to be submitted in section 5.03 of the proposed revenue procedure. One commenter
requested more clarity regarding the
standard for determining whether a subordinate organization is affiliated with a
central organization. In response, section
4.02(2) of Rev. Proc. 2026-8 adds several examples illustrating how a central
organization may demonstrate affiliation
with its subordinate organizations, while
reforming the “entirety of the information” standard regarding affiliation that
is set forth in section 3.02(2) of the proposed revenue procedure into a standard
that reviews all “facts and circumstances
showing that [the subordinate organization] is a chapter, local, post, or unit of the
central organization.”
.04 General Supervision Standard.
Section 3.02(1) of the proposed revenue procedure required a central organization to have one or more subordinate organizations under its general supervision or
control. Section 3.02(3) of the proposed
revenue procedure stated that the general
supervision requirement is satisfied if the
central organization (1) annually obtains,

369

reviews, and retains information on the
subordinate organization’s finances, activities, and compliance with annual filing
requirements (in accordance with section
7 of the proposed revenue procedure), and
(2) transmits written information to (or
otherwise educates) the subordinate organization about the requirements to maintain tax-exempt status under the applicable
paragraph of § 501(c), including annual
filing requirements (in accordance with
section 7 of the proposed revenue procedure). Several commenters claimed that
the general supervision standard in the
proposed revenue procedure was ambiguous concerning the amount and type of
information a central organization must
obtain, review, and retain regarding its
subordinate organizations’ finances, activities, and compliance with filing requirements. One commenter requested more
specificity regarding the way a central
organization exercises general supervision
over subordinate organizations that file
Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not
Required to File Form 990, or Form 990EZ, Short Form Return of Organization
Exempt From Income Tax.
To provide additional clarity and specificity, section 4.02(3)(b) of Rev. Proc.
2026-8 provides that a central organization
satisfies the requirement to obtain, review,
and retain information about a subordinate
organization by acquiring a copy of the
Form 990, Return of Organization Exempt
From Income Tax, or Form 990-EZ that
the subordinate organization filed with the
IRS. However, section 4.02(3)(b) of Rev.
Proc. 2026-8 also provides that obtaining
a copy of a Form 990-N will not satisfy
the central organization’s requirement
to obtain, review, and retain information
regarding the subordinate organization.
Consequently, a central organization
must obtain information about subordinate organizations that file Form 990-N
in some other manner, such as by requiring additional annual written information
from those subordinate organizations.
Section 4.02(3)(c) of Rev. Proc. 2026-8
provides a separate rule for subordinate
organizations that are not required to file
an annual information return or notice.
This new provision was added in response
to different comments and is addressed in
section III.07 of this notice.

January 20, 2026

Commenters also asked about the information a central organization must transmit to subordinate organizations regarding
how to maintain tax-exempt status under
§ 501(c)(3). Section 4.02(3)(a)(ii) of Rev.
Proc. 2026-8, like section 3.02(3)(b) of the
proposed revenue procedure, is intentionally broad so as to afford a central organization flexibility in meeting the general
supervision standard; however, to provide
additional clarity, section 4.02(3)(a)(ii) of
Rev. Proc. 2026-8 specifies that electronic
delivery of such information is acceptable
and that the required information must be
transmitted to subordinate organizations
annually. Additionally, section 4.02(5) of
Rev. Proc. 2026-8 contains a new example that illustrates that one way a central
organization can meet the standard in section 4.02(3)(a)(ii) of Rev. Proc. 2026-8 is
to provide its subordinate organizations an
electronic link to the latest version of Publication 557, Tax-Exempt Status for Your
Organization.
Some commenters suggested that a
subordinate organization should only be
required to inform the central organization
that it has complied with its filing obligations once every three years because
§ 6033(j)(1)(B) provides for the automatic
revocation of tax-exempt status of certain
organizations upon the failure to file a
required information return or notice for
three consecutive years. This suggestion is
not adopted in Rev. Proc. 2026-8 because
the Treasury Department and the IRS
believe that the requirement that a central organization annually obtain, review,
and retain information on its subordinate
organizations helps ensure the subordinate
organizations are complying with their filing requirements.
.05 Control Standard.
Section 3.02(4) of the proposed revenue procedure provided that a subordinate
organization is subject to a central organization’s control if (1) the central organization appoints a majority of the subordinate organization’s officers, directors, or
trustees; or (2) a majority of the subordinate organization’s officers, directors, or
trustees are officers, directors, or trustees
of the central organization. Some commenters claimed that this control standard

2

was overly rigid and that compliance with
it would be burdensome, particularly for
a central organization with numerous subordinate organizations. One commenter
asked that the final revenue procedure
consider alternative governance structures
that also demonstrate control by the central organization, such as cases in which
the central organization must approve the
election of the subordinate organization’s
directors. Another commenter stated that
the proposed control standard was at odds
with principles of union democracy and
that it directly contradicts provisions of
the Labor-Management Reporting and
Disclosure Act2 that require officers of
covered unions to be elected by a secret
ballot of members.
The Treasury Department and IRS
agree that the control standard should
not be rigid to the point of being burdensome and should be generally compatible with principles of union democracy
and alternative governance structures.
To provide additional flexibility to the
control standard, section 4.02(4)(e) of
Rev. Proc. 2026-8 adds a third way for
a central organization to establish control over a subordinate organization. The
central organization can establish control
over the subordinate organization using
a written agreement evidencing its control over the subordinate organization’s
activities and operations. Rev. Proc.
2026-8 does not set forth a specific level
of control that must be established in the
written agreement. Whether the written
agreement sufficiently establishes control depends on the facts and circumstances. This expansion of the control
standard should alleviate the concerns
expressed by commenters regarding
alternative governance structures and
the Labor-Management Reporting and
Disclosure Act. Specifically, the expansion permits central organizations to use
a written agreement that describes an
alternative governance structure to establish control over subordinate organizations that use that alternative governance
structure. This expansion also permits a
central organization to establish control
over its subordinate organizations using a
written agreement addressing aspects of

the subordinate organization’s activities
and operations without interfering with
the election of union officers.
A commenter suggested that any reference in the control standard to “a majority of officers, directors, or trustees” must
be limited to those officers, directors, and
trustees that have voting power because,
in the commenter’s view, voting power
evinces control. The Treasury Department
and the IRS generally agree with this
comment. Accordingly, section 4.02(4)
(a)-(d) of Rev. Proc. 2026-8 provides that
a subordinate organization is subject to
a central organization’s control if (1) the
central organization appoints the subordinate organization’s directors or trustees who possess a majority of the voting
power with respect to the subordinate
organization’s governance, (2) the central
organization appoints a majority of the
subordinate organization’s officers, (3)
the subordinate organization’s directors or
trustees possessing a majority of the voting power with respect to the subordinate
organization’s governance are directors
or trustees of the central organization, or
(4) a majority of the subordinate organization’s officers are officers of the central
organization.
.06 Use of Intermediate Subordinate Organizations to Establish General
Supervision or Control.
Several commenters suggested that the
final revenue procedure allow a central
organization to exercise general supervision or control over subordinate organizations through intermediate subordinate
organizations. The Treasury Department
and the IRS do not agree with these comments. A central organization is directly
responsible for ensuring its subordinate organizations are entitled to federal
tax-exempt status, and allowing a central
organization to establish general supervision or control through intermediate subordinate organizations would run the risk
of undermining this fundamental aspect of
the group exemption letter program. Further, the use of intermediate subordinate
organizations would create administrative
complexities for the IRS in the event a
group exemption letter is the subject of an
examination.

Labor-Management Reporting and Disclosure Act of 1959, Public Law 86-257, 73 Stat. 519 (codified as amended in Title 29 of the United States Code).

January 20, 2026

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Bulletin No. 2026–4

.07 Concerns by Religious Organizations Regarding General Supervision or
Control.
Several
religious
organizations
objected to the general supervision or
control standards in section 3.02(3) and
(4) of the proposed revenue procedure,
claiming the standards would impermissibly interfere with their religious practices
because their religious beliefs require
self-governance and autonomy at the local
level. These commenters argued that the
proposed revenue procedure would prevent them from participating in the group
exemption letter program, in violation of
the First Amendment and the Religious
Freedom Restoration Act.3
In response to the comments from these
religious organizations, section 4.02(3)(c)
of Rev. Proc. 2026-8 provides that a central organization does not have to annually obtain, review, and retain information
on a subordinate organization’s finances,
activities, and compliance with annual filing requirements if that subordinate organization is not required to file an annual
information return or notice. Under these
circumstances, a central organization satisfies the general supervision standard in
section 4.02(3)(a) of Rev. Proc. 2026-8 by
annually transmitting written information
to, or otherwise educating, the subordinate organization about the requirements
to maintain tax-exempt status under the
applicable paragraph of section 501(c),
including, but not limited to, annual filing requirements, if applicable. Section
4.02(5)(c) of Rev. Proc. 2026-8 adds an
example to further clarify this point. The
Treasury Department and the IRS believe
these commenters’ concerns are alleviated
by the aforementioned revisions to the
general supervision standard of section
4.02(3) of Rev. Proc. 2026-8, because they
can participate in the group exemption
letter program by satisfying the general
supervision standard, rather than the more
onerous control standard.
Some religious organizations objected
to the use of the term “subordinate organization,” stating that the term does not
accurately reflect their organizational
structure. Rev. Proc. 2026-8 continues to
use the term “subordinate organization”

3

because the group exemption letter program has referred to organizations as subordinate organizations for many decades
and changing the term now would likely
cause confusion. The use of this nomenclature for purposes of the group exemption letter program does not have any
impact on the federal tax treatment of the
organizations that choose to participate in
the group exemption letter program.
.08 Matching Requirement for a Central Organization Described in § 501(c).
Section 3.03(2)(a)(i) of the proposed
revenue procedure retained the “matching
requirement” found in Rev. Proc. 80-27,
which required all subordinate organizations initially included in, or subsequently added to, a group exemption letter
to be described in the same paragraph of
§ 501(c). Section 3.03(2)(a)(ii) of the proposed revenue procedure added an additional matching requirement that required
all subordinate organizations initially
included in, or subsequently added to, a
group exemption letter to be described
in the same paragraph of § 501(c) as the
central organization, including a central
organization that is described in § 501(c)
and is an instrumentality or an agency of
a political subdivision. Section 3.03(2)(a)
(iii) of the proposed revenue procedure
provided that this additional matching
requirement would not apply if the central
organization is an instrumentality or an
agency of a political subdivision but is not
described in § 501(c). Several commenters expressed support for the additional
matching requirement, but others objected
to it.
Notice 2020-36 explained that requiring subordinate organizations to be
described in the same paragraph of
§ 501(c) as their central organization was
intended to improve the central organization’s ability to exercise general supervision or control over its subordinate organizations. Given the changes Rev. Proc.
2026-8 makes to other provisions of the
proposed revenue procedure, the Treasury
Department and the IRS have determined
that it is not necessary for subordinate
organizations to be described in the same
paragraph of § 501(c) as their central organization. Accordingly, section 4.03(2)(a)

of Rev. Proc. 2026-8 requires subordinate
organizations to be described in the same
paragraph of § 501(c) as one another, but
subordinate organizations are not required
to be described in the same paragraph of
§ 501(c) as their central organization.
.09 Foundation Classification Requirement.
Section 3.03(2)(b) of the proposed revenue procedure provided that all subordinate organizations described in § 501(c)
(3) that are initially included in, or subsequently added to, a group exemption
letter must be classified as public charities
under the same paragraph of § 509(a),
unless an exception applies. Several commenters stated that this “foundation classification requirement” accomplished little,
due to the exceptions, and that it would
increase administrative burdens in some
instances. The Treasury Department and
the IRS agree with this comment. Accordingly, Rev. Proc. 2026-8 does not include
a foundation classification requirement.
.10 Similar Purpose Requirement.
Section 3.03(2)(c) of the proposed
revenue procedure contained a “similar
purpose requirement” that required all
subordinate organizations under a group
exemption letter to have a primary purpose that is described by the same National
Taxonomy of Exempt Entities (NTEE)
code. One commenter contended that the
requirement would place unnecessary
burdens on organizations and potentially
limit participation in the group exemption
letter program.
The Treasury Department and the IRS
have determined that the similar purpose
requirement contained in the proposed
revenue procedure would not facilitate a
central organization’s exercise of general
supervision or control over its subordinate
organizations as was originally intended.
Subordinate organizations under many
group exemption letters have different purposes, and a central organization
would have a strong incentive to select
a NTEE code that describes a wide variety of purposes in order to comply with
a similar purpose requirement. Furthermore, a similar purpose requirement is
unnecessary because other provisions of
Rev. Proc. 2026-8 adequately facilitate

The Religious Freedom Restoration Act of 1993, Public Law 103-141, 107 Stat. 1488 (codified at 42 U.S.C. § 2000bb through 42 U.S.C. § 2000bb-4).

Bulletin No. 2026–4

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January 20, 2026

general supervision or control by a central organization. Accordingly, Rev. Proc.
2026-8 does not include a similar purpose
requirement.
.11 Uniform Governing Instrument
Requirement.
Section 3.03(2)(d) of the proposed revenue procedure provided that all subordinate organizations must adopt a uniform
governing instrument, such as, but not
limited to, a charter, trust indenture, articles of association, etc., and provided that
representative instruments are not acceptable for this purpose. For group exemption letters including subordinate organizations described in § 501(c)(3) with
different purposes, the proposed revenue
procedure required the governing instrument describing each distinct charitable,
educational, scientific, or other exempt
purpose to be a uniform governing instrument.
Many commenters said that this “uniform governing instrument requirement”
was untenable, claiming that complete
uniformity is impossible in many circumstances because state law requirements for
governing instruments vary from state to
state. The commenters also said that subordinate organizations often have substantially different functions in carrying out
the overarching purpose of a group, which
often requires governing instruments that
differ even though such differences do not
necessarily reflect differences in purpose.
Religious organizations raised concerns
that the uniform governing instrument
requirement would impermissibly interfere with church governance. One commenter noted that the uniform governing
instrument requirement would be at odds
with principles of union democracy and
local decision making that are codified
in the Labor-Management Reporting and
Disclosures Act.
The Treasury Department and the IRS
agree that the uniform governing instrument requirement in the proposed revenue procedure would impose burdens
that outweigh its effectiveness in the
administration of the group exemption
letter program. Accordingly, Rev. Proc.
2026-8 does not include a uniform governing instrument requirement. Instead,
section 4.03(2)(b) of Rev. Proc. 2026-8
sets forth a uniform purpose statement
requirement that requires subordinate

January 20, 2026

organizations that share the same purpose to have a uniform purpose statement in their governing instruments (for
example, a charter, trust indenture, articles of association, etc.). If one or more
subordinate organizations covered by a
group exemption letter have a purpose
that is different from the purpose of other
subordinate organizations covered by the
letter, the subordinate organizations that
share a purpose must include the same
uniform purpose statement in their governing instruments. The uniform purpose
statement must generally describe the
purpose of the subordinate organizations.
The Treasury Department and the IRS
believe that, unlike the uniform governing instrument requirement in the proposed revenue procedure, this uniform
purpose statement requirement addresses
commenters’ concerns about the varying
state laws regarding governing instruments. The uniform purpose statement
requirement also allows subordinate
organizations to retain appropriate autonomy from the central organization, as
may be necessary for non-tax purposes.
Moreover, requiring subordinate organizations to have a uniform purpose statement helps central organizations ensure
that all subordinate organizations under
their general supervision or control have
a valid exempt purpose. The uniform purpose statement requirement also reduces
the IRS’s administrative burden because
it enables more streamlined processing of
group applications.
.12 Annual Accounting Period Requirement.
Section 4.02(5) of Rev. Proc. 80-27
required subordinate organizations to be
on the same annual accounting period as
the central organization to be included in
a group return. While the proposed revenue procedure did not clearly provide
this requirement, section 5.03(j) of the
proposed revenue procedure required a
central organization that submits a group
application to include a statement that
any subordinate organizations that will be
included in a group return will be on the
same annual accounting period as the central organization. To make it clear that the
annual accounting period requirement in
Rev. Proc. 80-27 remains applicable, section 4.03(2)(c) of Rev. Proc. 2026-8 sets
forth an annual accounting period require-

372

ment equivalent to section 4.02(5) of Rev.
Proc. 80-27.
.13 Exclusion of Revoked Organizations.
Under section 3.04(5) of the proposed
revenue procedure, an organization that
had its exemption automatically revoked
and that has not yet had its exemption
reinstated after filing an application for
reinstatement was ineligible to be a subordinate organization under a group
exemption letter until the IRS reinstated
the organization’s exemption. One commenter opined that this requirement is
unnecessary and overly burdensome and
suggested that a simplified procedure,
such as filing a Form 990-series information return for the prior years, should be
sufficient for an automatically revoked
organization to join a group exemption
letter.
Allowing an organization that has
had its tax-exempt status automatically
revoked to regain tax-exempt status by
joining a group exemption letter would
violate § 6033(j)(2). That section requires
organizations that lose tax-exempt status
by automatic revocation to apply for reinstatement to become tax-exempt again.
Accordingly, section 4.04(5) of Rev. Proc.
2026-8 retains the requirement in the proposed revenue procedure that an organization that loses tax-exempt status by automatic revocation must be reinstated before
it is eligible to be a subordinate organization. Further, section 9.07 of Rev. Proc.
2026-8, which discusses automatic revocation, clarifies that an organization that
has its tax-exempt status automatically
revoked must file an application for reinstatement to qualify for tax-exempt status
even if the organization was not originally
required to apply for tax-exempt status.
.14 Authorization for Initial Inclusion
or Subsequent Addition as a Subordinate
Organization.
Section 3.05(1) of the proposed revenue procedure retained the requirement
from Rev. Proc. 80-27 that a subordinate
organization must authorize a central
organization in writing to include it in a
group application. Section 3.05(2) of the
proposed revenue procedure added that
this authorization must acknowledge that
the central organization may remove the
subordinate organization from the group
exemption letter if the subordinate orga-

Bulletin No. 2026–4

nization fails to comply with the requirements of the proposed revenue procedure.4
Some commenters were concerned that
this new authorization requirement would
not accommodate subordinate organizations that executed an authorization that
satisfies Rev. Proc. 80-27 while waiting
for the IRS to resume accepting group
applications upon the publication of Rev.
Proc. 2026-8. These commenters asked
for a one-year transition period before the
new authorization requirement goes into
effect. Several commenters also suggested
that, if a subordinate organization had
been included in a group exemption letter
for more than five years when Rev. Proc.
2026-8 is published, the IRS should presume that such subordinate organization
provided the required authorization to the
central organization even if a copy cannot
be located.
Rev. Proc 2026-8 does not provide the
transition period requested by the commenters and does not adopt the presumption for subordinate organizations that
have been included in a group exemption
letter for more than five years. If a subordinate organization executed an authorization that does not include a right of
removal during the period when the IRS
was not accepting group applications, the
central organization must obtain a new
authorization from the subordinate organization. Moreover, if a central organization
cannot locate the required authorization
for a subordinate organization, it must
obtain a new authorization. The Treasury Department and the IRS have determined that the small burden in obtaining
an authorization is justified because both
central organizations and subordinate
organizations must demonstrate compliance with Rev. Proc. 2026-8 to receive the
administrative conveniences it affords.
Although Rev. Proc. 2026-8 does not
include any of the revisions requested by
commenters regarding the authorization
for initial inclusion or subsequent addition
to a group exemption letter as a subordinate organization in section 3.05 of the
proposed revenue procedure, Rev. Proc.
2026-8 revises the authorization provision in the proposed revenue procedure

to require the authorization to permit the
central organization to remove the subordinate organization with or without cause,
in accordance with the provisions of section 8.02 of Rev. Proc. 2026-8. This revision to the authorization provision reflects
changes to the provisions of Rev. Proc.
2026-8 governing the removal of subordinate organizations by a central organization that are addressed in section III.17 of
this notice.
.15 Instructions for Submitting a Group
Application.5
No comments were received regarding
the instructions for submitting a group
application contained in section 5 of the
proposed revenue procedure. However,
the Treasury Department and the IRS
have revised the instructions in the proposed revenue procedure, which are contained in section 6 of Rev. Proc. 2026-8, to
reflect changes to other provisions of the
proposed revenue procedure. Specifically,
section 6.04(1)(o) of Rev. Proc. 2026-8
provides that the IRS can issue guidance
requiring central organizations to provide additional information in a group
application, and section 6.04(3) of Rev.
Proc. 2026-8 requires a central organization with a pending group application to
provide additional information to the IRS
correcting any inaccurate information or
representations in the pending group application, even if the inaccuracies arise after
the application is submitted to the IRS.
These two new provisions will increase
the efficiency of the group exemption letter program and improve the integrity of
data collected for purposes of oversight of
the group exemption letter program.
The Treasury Department and the IRS
also revised the instructions in the proposed revenue procedure regarding the
method for submitting a group application.
Under section 6.02 of Rev. Proc. 2026-8,
group applications must be submitted
electronically on Form 8940 at www.
pay.gov, along with all information, documentation, and other materials required
by Form 8940 and its instructions, including the appropriate user fee. The IRS may
change the procedures for the submission
of group applications through guidance

published in the Internal Revenue Bulletin
or in forms, instructions, publications, or
a posting on irs.gov issued with respect to
Rev. Proc. 2026-8.
.16 Information Required to Maintain
a Group Exemption Letter / Supplemental
Group Ruling Information.
Under section 6 of the proposed revenue procedure, when a central organization made a Supplemental Group Ruling
Information (SGRI) submission adding
a subordinate organization to its group
exemption letter, the central organization
was required to include certain information in the submission, including a statement that the information upon which
the group exemption letter is based is
applicable to the new subordinate organization in all material respects. The SGRI
submission was also required to include,
among other things, a detailed description
of changes in the purposes and activities
of subordinate organizations, as well as
the date of formation of any subordinate
organization that has changed its name
or address or is no longer included in the
group exemption letter.
One commenter stated that it might be
inappropriate to require a central organization to report that the original information
upon which a group exemption is based is
applicable to a new subordinate organization if the central organization reported
changes in the purposes or activities of the
group exemption in previous SGRI submissions. In response, section 7.02(3)(b)
of Rev. Proc. 2026-8 now provides that a
central organization making an SGRI submission that adds a subordinate organization to its group exemption letter must
include a statement that the information
upon which the group exemption letter is
based, as updated by the current or previous SGRI submissions, is applicable to the
new subordinate organization in all material respects.
One commenter asked that the final
revenue procedure provide a procedure
for a central organization to request
approval of any SGRI modifications the
central organization makes to the information upon which its group exemption
is based. This commenter stated that such

The proposed revenue procedure and Rev. Proc. 2026-8 except preexisting subordinate organizations from this new authorization requirement.
A central organization’s submission to obtain a group exemption letter is referred to a “request for a group exemption letter” or a “group exemption letter request” in the proposed revenue
procedure and as a “group application” in Rev. Proc. 2026-8. For purposes of consistency, this notice uses the term “group application.”
4
5

Bulletin No. 2026–4

373

January 20, 2026

an approval procedure will help the central organization ensure that its standards
for reviewing new subordinate organizations remain acceptable to the IRS. At
this time, the Treasury Department and
the IRS decline to create a procedure to
approve group exemption letter modifications because such a procedure would be
inconsistent with the IRS’s general position not to rule on modified activities of
tax-exempt organizations. See section
3.01(83) of Rev. Proc. 2026-3, 2026-1
I.R.B. 143 (the IRS will not issue letter
rulings or determination letters regarding
whether an organization is or continues to
be exempt from taxation under § 501(a)
as an organization described in §§ 501(c)
or 501(d), including whether changes in
an organization’s activities or operations
will affect or jeopardize the organization’s
tax-exempt status); section 3.02(7) of Rev.
Proc. 2026-5, 2026-1 I.R.B 258 (the IRS
will not issue a determination letter if an
organization recognized as tax-exempt
under § 501(c) requests a new determination letter confirming that the organization
continues to be recognized under the same
Code section). If the IRS’s position under
section 3.01(83) of Rev. Proc. 2026-3 (or
its successor), and section 3.02(7) of Rev.
Proc. 2026-5 (or its successor) changes,
the IRS may reconsider creating a procedure to approve group exemption letter
modifications.
Another commenter took exception
to the proposed revenue procedure’s
requirement that a central organization’s
SGRI submission include descriptions of
all changes in the purposes and activities
of subordinate organizations. This commenter stated that the proposed reporting
requirement was overly broad, burdensome, and unnecessary. The Treasury
Department and the IRS agree with the
commenter. Accordingly, section 7.02(1)
of Rev. Proc. 2026-8 contains the reporting requirements contained in Rev. Proc.
80-27, which only require information
regarding changes in the purposes, character, or method of operation of subordinate
organizations.
A final commenter suggested that
SGRI submissions should not be required
to include the date of formation of a subordinate organization if the purpose of
the SGRI submission is to report a name
or address change or that the subordinate

January 20, 2026

organization is no longer part of the group
exemption letter. In response, section
7.02(3)(a) of Rev. Proc. 2026-8 provides
that a central organization is required to
report the date of formation or incorporation of a subordinate organization in an
SGRI submission only when it is adding
the subordinate organization to its group
exemption letter.
Rev. Proc. 2026-8 makes four additional changes to the SGRI provisions.
First, section 7.01 of Rev. Proc. 2026-8
continues to require a central organization
to submit its annual SGRI at least 30 days
before the close of its annual accounting
period but adds that a central organization may not submit its annual SGRI
more than 90 days before the close of its
annual accounting period. Second, section
7.02(2)(a)(iii) of Rev. Proc. 2026-8 provides that SGRI submissions must include
a list of subordinate organizations whose
tax-exempt status has been automatically
revoked. Third, under section 7.02(4) of
Rev. Proc. 2026-8, the IRS may specify additional information to be included
in SGRI submissions through published
guidance or another form of guidance
issued after Rev. Proc. 2026-8 is published. Finally, under section 7.03, SGRI
submissions must be made electronically.
If the IRS has not published procedures
for the electronic submission of SGRI by
the publication date of Rev. Proc. 20268, SGRI must be mailed to the address set
forth in section 7.03 of Rev. Proc. 2026-8.
The IRS may change the address and the
procedures for the submission of SGRI
through guidance published in the Internal Revenue Bulletin or in forms, instructions, publications, or a posting on irs.gov
issued with respect to Rev. Proc. 202-8.
These new provisions will increase the
efficiency of the group exemption letter
program and improve the integrity of data
collected for purposes of oversight of the
group exemption letter program.
.17 Termination of, or Removal from,
the Group Exemption Letter.
Section 8.01 of the proposed revenue procedure provided that the IRS
may terminate a group exemption letter
with respect to all subordinate organizations for, among other reasons, noncompliance by the central organization
with the requirements of the proposed
revenue procedure, including lateness

374

in any SGRI submission and any failure to exercise general supervision or
control over one or more subordinate
organizations. One commenter claimed
that the proposed revenue procedure’s
provisions involving IRS termination of
a group exemption letter were too strict
and may result in “isolated errors” causing the termination of a group exemption
letter. The Treasury Department and the
IRS do not agree with this comment. The
termination provisions contained in the
proposed revenue procedure are necessary to ensure that central organizations
and subordinate organizations remain in
compliance with the requirements of the
group exemption letter program. Further,
several of the proposed revenue procedure’s requirements have been relaxed in
Rev. Proc. 2026-8, easing the burdens on
organizations participating in the group
exemption letter program and making it
less likely that errors resulting in an IRS
termination will occur. Additionally, IRS
termination under section 8.01(1) of Rev.
Proc. 2026-8 is discretionary and the IRS
can consider whether an error is isolated
when determining whether termination
is warranted. Accordingly, Rev. Proc.
2026-8 contains the termination provisions as proposed.
The proposed revenue procedure provided that the IRS can also terminate a
group exemption letter with respect to all
subordinate organizations if more than half
of the subordinate organizations have had
their exemptions automatically revoked. A
commenter expressed concern about this
provision, noting that it is common for
small subordinate organizations to rely on
volunteers who may not understand their
filing responsibilities and that if one or
more of the subordinate organizations has
their exemption automatically revoked,
it puts the group exemption letter at risk
of termination. The Treasury Department
and the IRS disagree with this comment.
If more than half of the subordinate organizations have had their exemptions automatically revoked, it is appropriate to terminate the group exemption letter because
the Treasury Department and the IRS
do not believe the administrative conveniences afforded by the group exemption
letter program should be available when
the majority of underlying subordinate
organizations fail to satisfy their statutory

Bulletin No. 2026–4

filing requirements. Accordingly, section
8.01(1)(g) of Rev. Proc. 2026-8 retains the
IRS’s ability to terminate a group exemption letter if the tax-exempt status of more
than half of the subordinate organizations
under that group exemption letter is automatically revoked for failure to satisfy
annual filing requirements.
Section 8.02 of the proposed revenue
procedure provided that a subordinate
organization will be removed from a group
exemption letter if (i) the central organization notifies the IRS that the subordinate
organization will no longer be included
in the group exemption letter, (ii) the IRS
determines that the subordinate organization is a type of entity disqualified from
being a subordinate organization, (iii) the
subordinate organization’s exemption is
automatically revoked, or (iv) the subordinate organization fails to satisfy certain
requirements of the proposed revenue procedure. While commenters did not submit
any comments regarding these provisions,
Rev. Proc. 2026-8 contains a number of
revisions regarding when subordinate
organizations may be removed from a
group exemption letter.
Section 8.02(1) of Rev. Proc. 2026-8
sets forth the circumstances when a subordinate organization may be removed
from a group exemption letter by the IRS.
This provision has been revised to remove
references to the foundation classification
and similar purpose requirements because
those requirements have been eliminated
and are not contained in Rev. Proc. 20268; however, a new provision contained in
section 8.02(1)(b) of Rev. Proc. 2026-8
permits the IRS to remove a subordinate
organization from a group exemption letter for any failure to meet the requirements
of Rev. Proc. 2026-8 or other published
guidance relating to Rev. Proc. 2026-8,
other than the bases for removal set forth
in section 8.02(1)(a) of Rev. Proc. 2026-8.
Unlike removal under section 8.02(1)(a)
of Rev. Proc. 2026-8, and the corresponding provisions of the proposed revenue
procedure, where removal is mandatory,
removal of a subordinate organization
from a group exemption letter under section 8.02(1)(b) of Rev. Proc. 2026-8 is
discretionary. The Treasury Department
and the IRS believe this new provision is
appropriate because it provides flexibility
in considering the severity of the subor-

Bulletin No. 2026–4

dinate organization’s failure to meet the
requirements under the group rulings program.
Section 8.02(2) of Rev. Proc. 2026-8
governs when a central organization can
remove a subordinate organization from
a group exemption letter. As is the case
under Rev. Proc. 80-27, Rev. Proc. 2026-8
permits a central organization to remove
a subordinate organization without action
by the IRS. The central organization
accomplishes this removal by sending
an SGRI submission to the IRS just as
required by Rev. Proc. 80-27. Specifically,
section 8.02(2) of Rev. Proc. 2026-8 states
a subordinate organization ceases to be
included in a group exemption letter on
the date the central organization notifies
the IRS of the removal.
Section 8.02(2) of Rev. Proc. 2026-8
also clarifies that a central organization
may remove a subordinate organization
from its group exemption letter with or
without cause. The proposed revenue procedure was not clear whether a subordinate organization can be removed without
cause. The Treasury Department and the
IRS believe that a central organization
should be able to remove a subordinate
organization from its group exemption
letter with or without cause, because that
ability affords the central organization
flexibility in overseeing the composition
of its group exemption letter.
Finally, section 8.02(3) of Rev. Proc.
2026-8 provides that a central organization must give a subordinate organization at least 30 days’ notice before the
subordinate organization can be removed
from a group exemption letter. The Treasury Department and the IRS believe this
notice requirement affords subordinate
organizations opportunity to prepare for
removal from a group exemption letter.
.18 Effect of Non-Acceptance, Non-Issuance, Termination, or Removal.
Section 9 of the proposed revenue procedure addressed ways that organizations
may obtain recognition of tax-exempt status if they are included as a subordinate
organization in a group application that is
not accepted or for which the IRS declines
to issue a group exemption letter. The proposed revenue procedure also addressed
ways that organizations may regain recognition of tax-exempt status if their group
exemption letter is terminated or if they

375

are removed from their group exemption
letter. Though commenters did not submit
any comments regarding these provisions
of the proposed revenue procedure, Rev.
Proc. 2026-8 reflects two clarifying revisions.
Sections 9.05(2)(b) and (c) of Rev.
Proc. 2026-8 clarify that a subordinate
organization included in a group application that is not accepted by the IRS,
included in a group application where the
IRS declines to issue a group exemption
letter, or included in a group exemption
letter that is terminated, may obtain recognition of its tax-exempt status by being
included in a group application by the
same central organization. If a subordinate organization is removed from a group
exemption letter, it may not be included
in a group application by the same central
organization because central organizations are only permitted to have one group
exemption letter.
Section 9.05(2)(e) of Rev. Proc. 2026-8,
which is a provision that was not included
in the proposed revenue procedure, clarifies that a subordinate organization may
obtain recognition of its exempt status
by being added back to a group exemption letter from which it was removed.
The proposed revenue procedure did not
provide for a subordinate organization to
obtain recognition of its tax-exempt status
in this manner.
.19 Effective Date of Exemption.
Under section 10 of the proposed revenue procedure, a subordinate organization added to a group exemption letter is
tax-exempt from the submission date of
the SGRI adding the organization to the
group exemption letter (unless the organization was already recognized as tax-exempt or included in another group exemption letter, in which case the organization
retains its earlier effective date of exemption). The proposed revenue procedure
provided that a subordinate organization
included in a group application is tax-exempt from the date of its formation if all
the subordinate organizations included in
the group application were formed within
27 months of the postmark date of the
group application. If any of the subordinate organizations included in the group
application were formed more than 27
months before the postmark date of the
group application and were not previously

January 20, 2026

recognized as tax-exempt or included in
another group exemption letter, then each
subordinate organization would be recognized as tax-exempt from the postmark
date of the group application.
Commenters recommended revising
the rule regarding subordinate organizations added to a group exemption letter to
provide that a newly formed subordinate
organization is treated as tax-exempt from
its date of formation if the SGRI adding
the organization to the group exemption
letter was submitted within 27 months
of the organization’s date of formation.
According to these commenters, the rule
in the proposed revenue procedure is
unduly burdensome because it requires a
central organization to make an SGRI submission immediately upon the formation
of each new subordinate organization to
avoid any period during which the subordinate organization is not tax-exempt.
The Treasury Department and the IRS
agree with this comment. Accordingly,
section 10.02 of Rev. Proc. 2026-8 provides that the effective date of exemption
for a subordinate organization that was
not previously recognized as tax-exempt
or included in another group exemption
letter and that is added to a group exemption letter within 27 months of its date of
formation is the organization’s date of formation. The effective date of exemption
for a subordinate organization that was
not previously recognized as tax-exempt
or included in another group exemption
letter and that is added to a group exemption letter more than 27 months after its
date of formation will be the submission
date of the SGRI adding it to the group
exemption letter.
One commenter recommended revising the rule regarding the effective date
of exemption of subordinate organizations included in a group application
because it penalizes innocent subordinate organizations if only one subordinate organization was formed more than
27 months before the postmark date of
the group application and creates a disincentive for organizations to be included
in a group application. According to this
commenter, any organization formed

within 27 months of the postmark date
of the application should be treated as
tax-exempt from its date of formation
even if there are other subordinate organizations included in the group application that were formed more than 27
months before the postmark date.
Rev. Proc. 2026-8 does not include
the suggested revision. Like the rules in
section 10 of the proposed revenue procedure, section 10.01 of Rev. Proc. 2026-8
provides that if any subordinate organization included in a group application was
formed more than 27 months before the
submission of the group application, the
effective date of exemption for all subordinate organizations listed in the group
application will be the submission date of
the group application. However, section
10.01 of Rev. Proc. 2026-8 differs from
the corresponding provisions in Rev. Proc.
80-27 and the proposed revenue procedure
in that it provides that subordinate organizations recognized as tax-exempt or that
are included in another group exemption
letter immediately prior to being included
in the group application retain their effective date of exemption. This revision
provides continuity for those subordinate organizations by clarifying that they
retain their effective date of exemption.
The Treasury Department and the IRS
believe sections 10.01 and 10.02 of Rev.
Proc. 2026-8 provide central organizations with sufficient flexibility to achieve
the desired effective date of exemption for
each subordinate organization, while continuing to facilitate efficient processing of
group applications in the same manner as
the effective date rules contained in Rev.
Proc. 80-27.
.20 Preexisting Subordinate Organization Rule and Transition Period.
The proposed revenue procedure contained two provisions limiting its applicability to preexisting group exemption
letters and preexisting subordinate organizations.6 The first rule provided that
certain provisions of the proposed revenue procedure do not apply to preexisting
subordinate organizations (PSO rule). The
second rule provided that certain provisions of the proposed revenue procedure

do not apply during a one-year transition
period.
One commenter said the PSO rule
should be expanded to exclude preexisting
subordinate organizations from all requirements in the proposed revenue procedure
that are not contained in Rev. Proc. 80-27.
According to this commenter, the new
requirements could cause thousands of
organizations to be removed from preexisting group exemption letters and forced
to apply for tax-exempt status individually. Alternatively, the commenter recommended several variations of the PSO
rule providing a more limited application
of the rule regarding the matching, foundation classification, and similar purpose
requirements. The Treasury Department
and IRS do not adopt any of the commenters’ recommendations because they would
essentially require the IRS to operate the
group exemption letter program using two
vastly different sets of rules and doing so
would unduly burden the IRS. Further,
the commenter’s suggestions regarding
applying the PSO rule with respect to the
matching, foundation classification, and
similar purpose requirements are not discussed because these requirements have
been substantially revised in, or omitted
from, Rev. Proc. 2065-8, as explained in
sections III.08, III.09, and III.10 of this
notice.
A commenter requested that a preexisting subordinate organization that has
had its tax-exempt status automatically
revoked, but subsequently reinstated,
be considered a preexisting subordinate
organization for purposes of the PSO
rule. This commenter expressed concern
that providing otherwise would be unduly
burdensome for unsophisticated organizations because they are more likely to have
their exemption automatically revoked.
Under section 3.10 of Rev. Proc. 20268, a preexisting subordinate organization
whose exemption has been automatically
revoked also loses its status as a preexisting subordinate organization. Reinstatement of tax-exempt status, whether
retroactive or not, will not cause the organization to regain its status as a preexisting
subordinate organization. A subordinate

A “preexisting group exemption letter” is any group exemption letter in existence on the date Rev. Proc. 2026-8 is published in the Internal Revenue Bulletin. Rev. Proc. 2026-8, § 3.09. A
“preexisting subordinate organization” is any subordinate organization included in a preexisting group exemption letter on the date Rev. Proc. 2026-8 is published in the Internal Revenue
Bulletin. Id. at § 3.10.
6

January 20, 2026

376

Bulletin No. 2026–4

organization that has its tax-exempt status
automatically revoked is removed from a
group exemption letter pursuant to section
8.02(1)(a)(iii) of Rev. Proc. 2026-8. If the
organization is subsequently added back
to the group exemption letter, it will not
meet the definition of a preexisting subordinate orga

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3Ad58edc7a862f86f9. Public record. Not legal advice.