On February 4, 2022, the NASCO Board submitted comments to the IRS in response to the Notice 2021-56 invitation to comment on standards that an LLC must meet to obtain 501(c)(3) status. Through these comments, the NASCO Board supported the standards that the IRS and Treasury Department currently apply and requested that the IRS and Treasury Department consider the importance of state charity oversight and the variation of state law applicable to oversight of LLCs and formation of charitable LLCs. The Board also recommended that tax-exempt standards for charitable LLCs require similar notifications to state charity officials as those under state nonprofit corporation law. And finally, the Board offered to help connect the IRS and Treasury Department with any individual state charity official office for any state-specific questions.
Please find the link to the NASCO letter here.