With the release of its 2026-2027 Priority Guidance Plan on September 29, 2026, the Internal Revenue Service (IRS) laid out its priorities for allocating Treasury Department and IRS resources for the year beginning on October 1, 2026, and ending on September 30, 2027.  The agency will focus resources on guidance items that “are most important to taxpayers and tax administration” as described in its statement on the 2026-2027 Priority Guidance Plan.

Among the guidance that IRS plans to issue relating to tax-exempt organizations are: 1) guidance on the statutory prohibition in § 501(c)(3) against participation or intervention in political campaigns; and 2) guidance under § 6033 regarding exempt organization information reporting requirements, including with regard to fiscal sponsorship arrangements.

With respect to the first item, the Internal Revenue Code prohibits § 501(c)(3) tax-exempt organizations from participating or intervening in any political campaign on behalf of (or in opposition to) any candidate for public office. This prohibition on political activity by tax exempt organizations is known as the Johnson Amendment. The IRS indicated earlier this year that it would issue guidance on the application of the Johnson Amendment to religious organizations, stating that “forthcoming guidance will provide clear, administrable standards for houses of worship, including how the law applies to certain communications made within the context of religious services.”

Many nonprofit advocacy organizations are concerned that this potential weakening of the Johnson Amendment could threaten the longstanding requirement that tax exempt organizations remain nonpartisan, which could undermine the public’s trust in these organizations.

With respect to the second item, the IRS also raised concerns about the need to improve the transparency of fiscal sponsorships, which typically involve an arrangement in which an organization or program seeking to carry out charitable activities affiliates with an existing § 501(c)(3) organization that shares a compatible mission.

Citing concerns about “rogue organizations [hiding] behind opaque arrangements,” IRS previously announced plans to revise Form 990 and issue a proposed rulemaking on the reporting of fiscal sponsorship arrangements.

We will continue to monitor any new guidance or regulations from IRS on both of these fronts.