Correction to 2025 Form 8940 Instructions

If you downloaded or printed the 2025 Instructions for Form 8940 prior to Feb. 13, 2026, please note the following correction to page 24.

Under Schedule Q, Line 7 we have removed lines 7a, 7b, 7c, and 7d. The lines were added incorrectly. The information has been restated into one line 7 only. The corrected instructions are below.

Line 7. A subordinate organization’s affiliation with the central organization is demonstrated by facts and circumstances showing that is a chapter, local, post, or unit of the central organization. Examples of affiliation include:

• Inclusion of the subordinate organization’s information on a group return described in section 1.6033-2(d) that includes the four-digit group exemption number;
• The current inclusion of the subordinate organization in a directory of subordinate organizations updated annually by the central organization; or

• In the case of a subordinate organization that is a church or a convention or association of churches, the sharing of common religious bonds or convictions with the central organization.
  A subordinate organization is subject to the central organization’s general supervision if the central organization:

• Annually obtains, reviews, and retains information on the subordinate organization’s finances, activities, and compliance with annual filing requirements; and

• Annually transmits (including electronically) written information to (or otherwise educates) the subordinate organization about the requirements to maintain tax-exempt status under the appropriate paragraph of section 501(c), including annual filing requirements, if applicable.
  A subordinate organization is subject to the central organization’s control if:

• 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,

• The central organization appoints a majority of the subordinate organization’s officers,

• 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,

• A majority of the subordinate organization’s officers are officers of the central organization, or
  The central organization and the subordinate organization enter into a written agreement that evidences the central organization’s control over the subordinate organization’s activities and operations.