Rev. Proc. 2007-x

26 TFK 6Ol.201: Rlrlzr~grarld rlrren~~i~ration
irtt(,rr

Rev. Proc. 2007-x

TABLE OF CONTENTS

SECTION 1. WHAT IS THE PURPOSE OF THIS REVENUE PKOCEUURE?
.0 1 Description of terms used in this revenue procedure
-02 Updiiled annually
SECTION 2. NATURE OF CHANGES AND RELATED REVENUE PKOCEDUKES
.O1 Rev. Pmc. 90-27 is superseded at~dthe processing of applications is now centralized
-02 Related revenue procedures

SECTION 3. WHAT ARK THE PROCEDURES FOR REQUESTING RECOGNITION OF EXEMPT
STA'I'US?
.O1 In general
-02 Uscr fcc
.03 h r m 1023 application
.04 Form 1024 application
.05 Letter application
.06 Form 1028 application
.07 Fnrnm 887 1 notice for political organiza~ions
-08 Requ~rementsfor a substmdally completed applica~~on
.09 Tcrrur~sturganizations not cligiblc to apply fur rccugniticm of cxemptiun

SECTION 4. WtIA?' AKE TIIE: S'1ANI)AKL)S FOR ISSUING A DWERMINATION 1,ETTER OR
RULING ON EXEMPT STATUS?
.01 Exen~ptstatus must be established in application and supporting documents
.02 Determination letter or ruling b a e d solely on administrative record
-03 Exempt status may he recogn~zedin advance of actual uperations
.04 No lcttcr if cxcrnpt status issue in litigation or undcr consideration withln the Scrvicc
.05 lncotnplete application
.@6Even i l application is complete, additional information may he required
-07 Expediled handling

SECTION 5. WHAT OFFICES ISSUE AN EXEMPT STATUS DETERMINATION LETTER OR
RULING?
-01 EO Dctcnninat~onsissues a determination letter in most cases
-02 Certain applications rcfcrrcd to EO Tcchnlcal
-03 TcchnicaI advice may be rcquestcd in ccrtain cascs
.MTcchnical advicc must be rcqucsted in certain cases
SECTlON h. WITHDRAWAL OF AN APPLICATION
.@I Applioa~ionmay be wi~hdrawnprior tu issuance of a determinittiun lcttcr or ruling
.02 4 7428 i~~~plications
of withdrawal of application under 501(c)(3)

SECT1C)N 7. WIIAT A K E 'I'IlE PKC>CC:I)UKES N'IillN EXKMYT STA'I'US IS UKNIED?
.01 Proposed adkerre drtzrn~~rlat~orj
letter or rulirig
.02 ,Appeal nf a proposed . ~ d ~ e r detert~ur~at~or~
sr
tztter issued by EO Determinations
.O? Prole~loC a proposed adverse rul~tlgissued by EO Technical
04 Final adverse deterrnin~rlclnlctrsr or ruling where no appeal c)r protest is subrnit~ed
.O5 How EO Determinatifitis l~,u~dler
XIappzat ot'n proposed adverse determination letter
.Oh Consideration by h e Appeals Office
07 If a prolrii of a propsed adverw rul~ngis s u h m ~ t ~ etod EO Technical
08 An appcd or protcsl may bc withdrilwn
.09Appeal or protest and conference rhghts not nppl~cablein certain siti~ations

SECTION B. DISL'LOSURE OF APPLICATIONS AND DETERMINATION LETTERS AND
RULlNGS
01 Djqclorure nC appllrarionc. cuppomng d r $ ~ u m e n t <
and
, favorahlc de~erm~nation
lcttcrs and rulings
02 Disclusure of adverse determlnat~unlcttcrs ur ruhngs
.03 Disclosure to State officials when the Service refuses to recognize exemption under 50 I (c)(3)
.04 Disclosure to State officials of informatiorl about 5 50 1 (c)(3r appl~cants

SECTION 9. REVIEW OF DETERMINATION I,ETTF,W KY BO 1'ECt IN I C A I .
.0 1 Determination letters may he reviewed by EO 'Techn~calLO assuw u n i f o r m ~ t y
-02 Prc~edurcsfur cases where EO Technical takcs cxccption to a J c t c r n ~ ~ n d i ulcttcr
n
SECTION 10. DECI-ARATORY JUnGMENT PROVISIONS OF 6 7428
-01Actual controversy involving certain issues

.02 Exhaustion of administrative remedies
-03No1earlier than 270 days after seeking deternunation
-04 Scrvicc must hive rcuonablc time to act on an appeal or protest
-05Final dcternunation to which Q: 7428 applies

SECTION 11. EFFECT OF I)ETERMPNATION LEXTEK OK KULING REC'OGNlZIKC;
EXEMYTlON
-01 Effective date of exemptiun
.02 Rcliancc on dctcrmination letter or ruling

SECTION 12. KEVOCA'TION OK MO1)IFICATION OF DETERMINATION LETTER OR RUI-IN[;
KECOGNIZING EXEMPTION
.0 1 Revocation or modificatiun of a determination lcttcr or ruling may be re~ronclive
.02 Appeal and confcrcncc proccdurcs in the case of revocation or modification of r ~ t r n p m
l r u s lel~er
SECTION 13. EFFECT ON OTHER REVENUE PROCEDURES
SECTION 14. EFFECTIVE DATE
SECllON 15. PAPKKWOKK REDUCTION ACT

DMFTING INFORMATION

SECIION 1. WHAT IS
THE PURPOSE OF
THIS REVENUE
PROCEDURE?

Description of terms
used in this revenue
prucedurr

Ttiis revenue procedure sets forth procedures for issuing determination
let~ersand rulings on the exempt staLus uf organifatluns undcr $8 501 and 521 of
thc Intcrnill Revenue Cude ulher ~ h a nthusc subjcct to Rev Pruc. 2007-6. 2007-1
I R.B. I89 (relating tu pensiun. prufit-sharing, stock bonus. annuity. and employce
stock uwnership plans). Generally, the Service issues these deterr~iinatlonlet~ers
and rulings in respunsc to applicatluns for rccognition of cxcmpt~onfrom Fcderal
income tax. These procedures also apply to revocation or modllication of
determination letters or rulings This revenue prncerlure also provides guiclwce on
the exhaustion of adrninistrativc remedies for purposcs of decIaratory judgment
under 3 7428 of the Code.

.O1 For purposcs of this rcvcnuc proccdurc ( I ) the term *'Servicefi tneans the Internal R e v e n u t Strvicc.

(2) thc term "applicat~un"rncans thc appropriate form or lcttcr that an
organization must file or submit to the Service for recognition of exemption from
Federal income tax under the applicable section of the lt~ternalRevenue Code.
Src section 3 tbr information nn specific forms.
( 3 ) the tern "EO Delerminations" means the ofticc of thc Scrvrcc that IS
primarily rcspunsible for processing ~ n i t ~applications
al
for tax-cxcrnpt status. It
lncludes thc lnain EO Dctcrminations office located in Crncinnatl. Ohio, and other
field offices that are under the direction and control of the Manager, EO
Deternjina~ions.
(4) the term "EO Techn~cal"rncans thc officc uf thc Scrvicc that 1s
primarily responsible for issuing letter rullngs to taxpayers on exempt organization
matters, and for providing technical advice or technical assistance to other offices
of the Strvice on exempt organi/.ation matters. The EO Techn~calofticc 1s Iocatcd
In Washington, DC.

(5) thc tci-111 "Appcals Officc" means a n y office under the direction atid
control of the Chief, Appcals. The purpose of the Appeals Office is to resolve tax
controversies, without litigation, on a [air and impmial basis. -1'tle Apptals Office
is indcpendcnt of EO Delerminalions and EO Technical.
(6) the term "determination letter" means a written statement issued by EO
Determinations or an Appcals Office in response to an applicatiot~for recugni~iun
of exemption from Federal income tax under $5 50 1 and 52 1 . Th15 includes a
written statement issued by EO Determinations or an A p p a l s Ofticc on the basis of
advice secured Crotn EO Techtiical prrrsuanl to he proccdurrs prescribed hercin
and in Rev. Proc. 2007-5.2007-1 1.K.B. 161

(7) the tern1 "ruling" means a written statement issued by EO Technical in
rcsponsc to an application for rccognition of exemption horn Federal income tax
undcr gk 50 1 and 52 I.

V p d a t d annually

-02 Thi$ revenue pruccdurc is updated annilally, hut ma): bc modified or
arnplificd during the >ex.

SECTION 2. NATURE
OF CHANGES AND
WLATED REVEWE
PROCEL)URF,S

Rev. Proc. 90-17 is
supersrdrd and the
processing of
applications is now
centralized

.O1 This revenue procedure updatcr; Rcv Pruc. 90-27. 1990-1 C.B. 5 14.
whwh is hereby supcrscdcd.
( I \ The responsibility !or proc.cs.rr k - t , ~ /hue~n i p t Orgatl~:l~rin~l
D~tertnii>ntio)l
Letter K t . q u r ~ l .St,t. Kc\ Pmc.
80-77

5 52 1

IS

User ree

-02 A n applicaliun must bc submittcd w ~ t hIhc correct user fee, as set forth
in Rev. Pruc 1007-8.

Form 1033 application

.03 An organlzatlon seeking recngnition of eArmptlon undcr b 51)1(~)(31
and $h 50 1 (e), (I),
(k), (n) or (q) must suhmlt a cumplcrcd Form 1035 111 the rase
or an organization that provides credl t coutiseling servrces. >rrscc tlvn 0 1 (q) 14
~ h Code
c

Farm 1024 application

.04An organization seeking recognition of exemp~ionundcr k$ 50 l (c)t 2 ),
(4)>
( 5 ) - (6).(7)>(8)- (91,(10). (12). (13)- (15). (IT), (19) or 125) ~iiusts u b ~ i ~ai l
complctcd Form 1024 w ~ t hForm 8718. In thc cast: of an orgnnizntion that prov~des
crcdlt counseling scrviccs and sccks recognition of exemption under stcllon
50 1(c)(4),see section 50 l (q) of the Code.
.05 An organiza~ionseeking recogn~tiunuf cxcrnption under

Letter application

65 501(c)(I I). (14). (16). (l8), (21), (22). (23), (26), (27) or (25) or under 501(d)
must submit a lctter appl~catiunwith Forn~8718.
Form 1028 application

.06 An organization seeking recognition o f exemption undcr
suh~nita completed Form 1028 with Form 87 18.

Form 8871 notice fur
political urganizations

-07 A political party, a campaign cominitree for ,I cmdidate for federal,
state ur local office. and a political action cornmi [tee are dl political organi~alions
subject to tax under # 527. To bc tax-exempt. a pol~tic'dorg:mization may he
requlred to notify thc Scrvlce that it 15 to be treated 3s 9 527 organi?.ation by
clcctronically filing Form 887 1. Pult~tculO r ~ t m l 7 ~ f iI ~Vr~r I ~of~ CSerfion
P
527
Siurrrs. For detarls, go lo [he IRS wehs~reat w w n irr , q c ~ ~ ~ ) o l o r g s .

!

Req irements for a
subs antially completed

521 must

OPJ su'o~tantlallycompleted appllcattotl. l!~clurl~rlg
a letter application, is
p n c khat,

application

[
I

Deleted: The ir~fororlnarionrequjred to be
subnlitled with Forrn 1023, I;or~n1024.

i and

torn1 1028 is Let uu[ i n thc
mstmc[iuns for those l m r .
-.-

(COmtMtIt [WCHl]: Per Cathy

I Livingston's

(2) ~ n ~ , l u dan
c s Employer Idenlificatlur) Nurtther (EIN)
(3) includes LI . ~ t a t e n ~i)f
e nr~e c e ~ p ~md
r rxpmditurcs ~ n ad bfatlcc sheet for
the current year aid the Ijlree prt~eJinfiyears for thc ycars the orgatuzntion was in
existence, if l e s ~rhan lhur ycars) If thc organlzauon has not ye1 comme:~crd
operaliuns, ur har not coil~plc~ed
one nccounling penud, a suh\tantially complctcd
applica~iongenerally lncludcs a proposed budge1 for TWO Cull accountrng periuds and
a cumnt stalemen1 aC wcr:: and liab~liries.
(4) includcs 3 dcta~lcdn m a t ~ vstatement
t
of prnpsed activities. including
each uf the f u n d r a i s ~ nactivities
~
of a $ 50 1 (c)(3) organization, and a narrative
description of anticipaled receipts and conlemplatcd cxpcnditurcs.

su~gestion,the
' f i r s t s e n t e n c e and t h e word
generally" in the second
b e m e have heen removed.

( Deleted: eeori all,

(5) ~ncludesa copy of the organirrng or enablirjg d o ~ u r n e nha1
~ I< ~ i e n e dhg
a principal ufficer or is accotnpatiied by a written declaration slgned by an authorized
individual certibrng that the document is a complete iu~daccurale copy of he original
or otherwise meets the requirements of a "conforn~cdcopy" as o~utllncdIn Rcv Roc
68-14, 1968-1 C . B . 768.
(6)if (he organizing or enabling document is in the Cnrln nC anicles of
incorporation. includcs cvidcncc that 11 was tiled with and appr~~vrd
by m appropnalc
state orficial (e.g.. s t u ~ ~ p e"Filed"
d
and datcd by thc Sccrctary of Statc) Allcma~ivcly.
a copy of he articles of incorporation may he s~tbmittediT accompanied by a wriiien
dcclaratiun signcd by an authorized individual that the copy i t a cnmple~em d
accurate copy of thc original copy hat was tiled wilh and approved by the s w ~ cIt a
copy is submitted, the writtcn dcclardtion must includc the d a ~ c~ h miclcs
c
wcrc filcd
with the state.

(7) if the organization has adopted by-laws, includcs a current copy. The
by-laws need not be signed if submitted as an attachment ro the application for
recognition of exemption. Otherwise, the by-laws ~ilustbe verified as rurretu by .uj
authuri7cd ~ndividud.
(8) is accompanied by the correcl user fee and Form 87 I 3, when appltchle.

Terrorist organizations
not eligible to apply for
recognition of

.09 An organization that is idcntlficd or dcs~gnatccias a tcrrunst organlaatlon
within the rncanlng of section 50 I(p)(2) uf thc C d c is not zl~giblcto apply for
recognition of exemption.

exemption

SECTION 4. W l l h l '
A R E TllE
STANDARDS FOR
ISSUMI; A
DETERhllNATION
1.E'T'I'EK OR KU1,ING
ON EXEMPT
STATUS?

Exempt status musl be
dahlished in
application and
supporting documcnt~

01 A lavorablc dctcrrn~nat~on
lcttcr or ruling will be ~ s s i ~ etod an
orpanizalion only I [ its application and supporting dccuments establish that it meets
the pdlcular req~iirernentsof the secrior~under which exemption from Federal
Income tax 15clumed

Determination letter or
ruling bawd solrly on
administrative record

.02 A dcterliunat~onletter or rullng on exempt status is issued based solely
upot~the facts and representations contained in the administrative record.
( I ) 'I'he appllcnnt ts re\prrnsthle Ihr the accuracy nf any factual
rrpresentxion2:contwned In the appllcatlon.

(21 A n y ural rcprcscnbation uf additiunal f a c ~ ur
s rnoditicat~onof facts as
rcprcxntcd or allcgccl In ~ h application
c
must bc reduced to writing uvcr thc
slgnaturc o i im author~zcclindividual.

( 3 ) Thc fii~lurctu d~sclosca matcr~alf ~ c or
t misrepresentatiun o f a
material Ihcr LW the appllrl~tionmay adversely affect the reliance that would
n t h e r u ~ s zh t a h ~ a ~ nthrough
td
issuance hy the Service of a favorable determination
Icttcr or n l l ~ t ~ g .
Eapmpt status may he
recognized in advanct
of actual operations

03 Ekcrnpt w t u s may he recognized in advance of the organization's
clpsrations I F thc proposed activities are described in sufficient detail to pcmit a
conclus~unthat thc ilrganlzatwn will clrdrly meet thc particular requirements for
cxcmptliln pursuant to the section of thc lntcmal Rcvcnuc Code undcr which
cxcmptioti u c l f med.
( 1 ) A mere rzsratznirnt of exempt purposes or a stxemetlt that p r o p s e d
aci iv~ries w ~ l he
l In fur~lwranceof such purposes will not satisfy this requirement.

( 2 ) The organilauon must fully describe all of the activilies in which il
expecls 10 engagc. ~ n c l u d ~ nthe
g d a n d d s . criteria, prcxrcdurcs or uthcr mrans
adopled or planned l'11rLarrylng clut the activities, the anticipated sources o f
receipts, and thc nalure ol' ctmwrnplated cxpenditurcs

(3) Where the urganization cannut dcmonstratc to the satisf;lction of the
Scrvicc that it qualifies fur exemption pursuant to the section of the Internal
Revenue Code under which exemption 1s ciirned the Service will generally issue
a proposed adverse determination letter or n~liny.Scc also section 7.

.

No letter if exempt
status issue in litigation
or u der consideration
with n the Service

.04 A de~erminatiunlctter or ruling c3n cxcmyt status will not ordinarily be
issued if an issue invulv~ngthc organization's chcrnpl status under $ 501 or F 521 i s
pending in I~tigation,j s undcr consideration wllhin [he Scn:ce, or i f issuance of a
dctcmination letter or ruling is not in the interrs~of 5ur1ndt ~ administratiod
x

Incomplete application

.05 If an application dws not contain all nf hr irrn~rset nu1 in sectlnn 3 08.
the Service may return it to the applicant for cornpletioi).

t

( I ) In lieu of returning an incomplete appI~~.~lirjn.
lhc Servlcc may rchin thc
application and request additional informativn nccdcd fur 3 ~ubstlml~ally
compleled
application.
(2) In the case of an application ur a group cxcrnptlon request under
$ 501( c ) ( 3 )that 1s returned incomplctc, thc 270-day p r i d referred lo In 742,P[b)(2)
will not be considered w starting untll the date a s u b ~ r u i ~ i d compleled
ly
Fum 1023
or group cxcmption rcquest is refiled with or re~nailedtclihr. Servlcr 11thr
applicatiun ur group exemption request is mailed to llir Service ;u>da p u s ~ r r ~ n risk nnl
eviden~,the 270-day vnrd will start tu run on thc d a ~ c~ h Srrvicr
r
aciually receives
the substantially completed Form 1023 or group exemptinn rcquc51 Thc wmc rulcs
apply for purposes of the notice requirement of 3 506.

---

-- .. -

--

-7

much discussion h u t how
t h l s paragraph shauld be
worded
Marv frred1;rnder
and r d ~ s o l s s dand came up
w ~ t ht h ~ enew wocdlng.

-

IS filcd.

Even if application is
complete, additional

(3) Generally. the user fec will no1 hc rclunrled
See Reu. Pruc. 2007-8, section 10

if

an incnn~ple~r
appllvarion

.06 Even though an applicat~on1s substanl!dly complctc, thc Scrvicc may
request additional infonnation before issuing a dc~crmlnauunIcucr or rul~np

idormation may be
required

( 1 ) If the application involves an issuc whcrc conirilry aulhuntrcs cx1s1,an
applicant's failure to disclose and distinguish conlrary author~tiesmay result rn
requests for additional information, w h ~ c hcould delay final action on the applica~~nn

(2) In the case of an application under $ 5 0 l ( c ) ( 3 ) ,thc p c n ~ dof time
beginning on the date the Service requests add~l~onal
informa~ionuntil the dale tlw
information is submitted to the Service will not he coun~edCor purvjles of the
270-day pcriud rcfcrrcd to in 5 7428(b)(1).

Expedited handling

II

.07 Applications are nonl~dlyprocessed i n he order of rcce~ptby the
Servlce. However, e x v d ~ t e dhandling of an appl~ca~ion
may be a p p r o ~ r dwhere a
request is made in writing and contains a con~pell~ng
reaqon for prwesslrlg the
apphvdtion ahcad oi others. Uporppprclvd ilf a requcst for r x ~ d ~ t ehmrlllngm
rl
appl~cationwill be consideredput of its nurmal urdcr Thihdl~esnot mcan the
applrcation will bc mmcdiatcly approvcd or denie4 Circumstances gcncrally
warranting cxpcditcd processing incliidc:
(1) A grant to thc applicant is p~ndingand h2 failurr: to srcilrr the grant may
have an adverse impact on the organization's a b i l ~ vto c o t ~ t i ~ to
u ~operate.
r

(2) The puqmse of the newly created c>rgan1/:ation is to provide disaster relicf
to victms of cmergencics such w f l d and humcanc
(3) There have been undue delays in issuing a determination letter or ruling
caused by a Service bmr,

( Deleted: Although
( Deleted:

--

---

1

r l l u ~ ~

1 Deleted: m h t p

m t ~ d

Deleted: . I !
t h e wording of this section
were suggested at t h e
briefing. The suggested

I

worefng would substitute
"resolved" t o t 'approved (or
disapproved1 " . Mary
Priedlander and I f e e l
"resolved" is not t h e
c o r r e c t word here, but w e
think denied would be better
than disapproved [ s e e
section 7 of the
proceduresl .

Deleted: (w dirippmval)

SECTlON 5. WHAT
OFFICES ISSUE AN
EXEMPT STATUS
DETERMINATION
LE'I'TEK OK KULING?
L C 0 Determinaliuns issues
a drlt.rminalion letler i n
most cases

Comment [WCH4]: ~t was
aar@ed that the second

.01 CJnderthe genera[ pn)cedures outlined rn Rev. Proc. 2007-4.
EO Dctcrminat~onsrs authvn7cd to issuc dctcrniinatiun lcttcrs on applications for
cxrrnpt ~ I Y under
U ~ 39 50 1 and 52 1.

Deleted: Delays resulting koln caw
prrrcrring bxklngs arc not contalc
w hc~hcr~t wishes an Appeals Office conlerence. Any determnation lelter 155urdon
ihc bas15uf technical advice from EO Technical may not he a p p a l e d tn the Appeals
O f f ~ c eon issucs that wcrc the subject uf the lechnicd advice

Protest of a prupused
adverse ruling issued by
EO Technical

03 A proposed adverse ruling issucd by EO Tcchnicd w ~ l al d v ~ s cihc
organli.allon of its opportunity to file a protest statement within 30 days and 10
rcqucst a conference. If a conkrence is reqtlested, the conference pri~eduresoiltlined
In Rcv Pruc. 2007-4, section 12, are applicable.

Final adverse
.04 If an organization does not subllllt a timely appcd of a propclsccl ilrivcrx
deter~linationletter or
clc~trminationletter issued by EO Detenninations. or a timely protrst of 3 PI-oposcd
ruling where no appeal ur adverse rul~ngissued by EO Technical, a final adverse derert~dnat~ot~
letter or rulitlg
protest is submitted
will be issued to the organization. The final adverse let:er or ruling will provide
information a b u u ~thc hling of t ~ returns
x
d n ~the
l dl\closure of the proposed and
final adverse Ictlers nr nllings
IIuw EO Determinations
.US If an organiralinn subnliis an appeal or the proposed adverse
delemination letier. ED Delennlnallons w ~ l first
l
review the appeal, and if it
handles an appeal of a
proposd adverse
determines that the nrganirarion qualifies lor tax-exempt status issue a favorable
determinatiun letter
exempt sbalus determrna~irmler~erIf ECI Ueterrn~nationsmaintains its adverse
pc~sitionafter revitwing the appzd, ~twill forward the appeal and the exemption
appl~calioncase hlc to the Appeals Office.

Consideration by the
Appeals Dl'l'ice

If a protest af a propnsed
adverse ruling i s
submitted to EO

Technical

06 The Appcah Ot lice will corisider the organization's a p v a l . If the
A p p n l j Ot'ficc agrccs with the proposed adverse determination, it will either issuc a
fit~nlntlvcrsc dctcrm~n;~t~trn
or, if a conrerence was requested, contact the
org,ujrznrlotl to schcdulc a conference. At the end ol' the conference process, which
may 1r1rolvr the subi~~rssion
of addittonal infnrmat~un.the Appeals Ofrice will either
Issue a f i t l d adverse dctcrmnation letter or a favorable determination letter. If the
Appeals Office belleves that an cxernption or privalr: foundation status issue is not
covered by puhli.;hzd precedent or that thcre is non-uniformity, thc Appeals Office
must rcqucst tcchn~caladvice from EO Technical in accordancc with Rcv. Pruc
2007-5. section 4.04.
-07 If an organization submits a protest of a proposed adverse cxcmpt status
rullng, EO Technical will review the protest statement. If the protest convinccs EO
Technical that the organilarlon qualifies for truc-exempt status, a favorabIc ruling
will bc issued. If EO Technical r n ~ i n t a i nits~ adverse position after reviewing the
protest, it will eithcr issuc a final adverse ruling or, if a conference was requested.
contact the organization to schedule a cclnfcrcncc A i thc cnd of thc cunfcrence
process, which may invdve the submission of addit~onal~ n f ~ r m a t i oEO
n , Tcchnical
wlll either issue a final adverre rulrnp or n Cavornhle e ~ e m p status
l
nilln~

An appeal ur protest may
.08 An organ1731ion may w~lhdrawils nppenl or prcltest before the Scrvicc
issues a tinill adverw rlerermination letler or ruling. C I y n recelpt o l the w~thdrawal
be withdrawn
rcqucst, thc Scrvicc w ~ l cumplr~e
l
the procrsslng nf rhr: case In the same manner as if
nu appcal or protesl mas reccived

Appeal or protest and
conference rights not
applicable in certain
siluatinns

SECTlUN S.
DISCLOSURE OF
APPL[CAT[ONS A N D
DETERMkNATLON
LETTERS AND
RUI,INCS

09 Thc opponunity iu appc~ior pruwst a proposed adverse determtnatlon
letter or ruling and the confercnsc nghts dcscnhcd abuvc are nor dpplicable LO
matters where delay wnuld he p r q i ~ i i i r ~tod the ~nterestsof the Serv~ce(such as in
cases involv~npfratid. jeopardy, the imnilncncs of the expirailon of the statute of
Ilrnitations, or rchcrc ~ n ~ n ~ c daction
~ a t c 15 ntccshary to prutecr the interests of the
Government).

$5 6 104 and 61 10 of the Code provide rules for the disclosure of application^,
including supporting documents, and determination letters and rulings.

Disclosure of
.O I The applications, any supporting documents, and the favorable
applications, supporting determination letter or ruling issued are available for public inspeclion undcr
documents, and favorable 6104(a)(l) of the Code. However, there arc certain limited disclosure cxccplrons

determination letters or
rl~lings

for a trade secret, patent, process, style of work, or apparatus if the Scrv~cc
deternliries thai the disclosure o r the inrormatlot~would adversely arfrcr rhr
organization.

( I)The Service is required to make the applicalions, suppurling dilcunwnr~.
and Ldvorahle determination letters or rulings available upon rrqursl T'hr puhl~cc l r l
rey ucst this ~nforrnatiotlby submitting Form 4506-A. Rrqrlcsr /or Ptttdic itrrprxrri~lrl
or Copy of Ercmpt or Polirirul Orgutlrrmrion IRS Fortti.

(7) The exempt o r p n ~ z a t ~ uISnrequlred tu mahr I ~ Sexemplion applrcatinn.
supporting d u c u m r n ~ 2nd
~ . drlermlnntlon lrtler or lul~ngavalablc for publlc
inspction w ~ t h o ucharge
~
For mtvc inlormal~r~n
about (tie exempt organization's
d~sclosureobligations. w e P11bIic311on557. T ~ x - L x f t ~S~~pUrI Ufor
S Your

Or,qatli?atiotl.

Disclosure of adverse
determination letters or
rulings

-02 The S e r v l c r ir required to make adverse dcterminat~onletters and rulings
available for public Inspcclion under 3 61 10 o f h e Code. Upon issuance of the final
adverse deter~nination Icllcr or rul~ngto an vrganlr.allon, both he proposed adverse
determination letter or ruling 3nd ~ h ctinal d v e r s c determination letter or ruling will
be releawd under $61 10
( I ) 'l'hese docuriizrits ,ue tnade avalablc to thc publ~cafter thc dclctiun of
names. addrcsscs, and any othcr information rhx nusht identify the taxpayer. SPF
4 61 10(c) fur othcr spec~ticdisclosure exempttorls.

(2) The final advcrsc determination letter or ruling w ~ l enclost
l
Nnlice 137.
rl/ htrenrion ro Discios~,and redacted cvpies of the final and prapnsrd
adverse determination lcttcrs or rulings. Nuticc 437 provides 1ns1rur:tionsIC the
organ~zariondisagrees with the dclctions prupuscd by the Scrvlcc
Mice

Disclosure tu Stale
officials when the Service
refuwq to recognize
exemption under
5 SUl(ci(3)

Disclosure to State
officials of information
about 5 501(c)(3)
applicants

.03 The Service may notify the appropriate Statc offic~alsuf a rcfusal to
rectrgnlfe an organization as tx-exempt under Q: 50 1(c)(3). See $ 6 I WC)
of I ~ C
Cudc. Thc nuticc to the Spate ofticials may include a copy of a prnpnsed or f~rial
adverse determination letter or ruling thc Scrvicc issucd to thc I,rgml/atlun In
L ~ d d ~ t ~i tlrpnn. request by the appropriate State official, the Serv~ccr;uv nukc
ava~lahlefor inspection and copying the exenlption application and othcr
~nforrnl~ltrn
relatlng to the Service's determinatiorl on exempt rt.~tus.

-04Thc Service may disclose to S r a ~ eofticials he name, address, and
identification number of any organizatic3n that has applied for rccugnition uf
exemption undcr k 50 1 !c ,131

SECTlON 9. REVlEW
OF I)ETERMINATION
LETTERS BY EO
TECHNICAL
Iletermination letters
may be reviewed by EO
T ~ h n i c ato
l assure
uniformity

.01 Determination letters issued by EO Detztm1n3tiun> mdy bbc reviewed hy
EO Technical, or the Office of thc Assuclat Ch~zt'Courjsel (Passthroughs and
Spccial Induslnrs) (for caces under 9 52 I ) , to assure uniform application of the

Prvcrdures for cases

.02 If EO Techn~caltakes cxccptrun to a delerm~nauonletter issued by
EO Determlna~~r,ns.
the manager of EO Dctcrm~na~runs
w ~ l he
l advlred. If
EO Dcterrntna~~c~ns
notilie.; the organlzatlon of thc cxceptlon taken, and the
organization ri~s~grc.c\
wtth the exception, thc tilc will bc rcturned to EO 'rcchrjlcal.
Thc rcfcrrat to EO Technical u 111 be treated as a rcqucst for technical aclv~ce,mcl rhc

LO Technical
take5 exception to a
Hhere

determination letter

statutes or regulat~ons.I,r rulin~s,court opinions. or dccisrons published in the
Internal Revenue Rullct~n

yrclcedures in Rcv Pruc 2007-5 wlll he followed

SECTION 10.
DECLARATORY
JUDGMENT
PROVISIONS OF $7428
Actual controversy
involving certain issues

.O1 Generally, a dcclaratury judgmcn~prnccccllng under 3 7428 of the Ccdc
can be filrd in the United States Tax Cuurt, the Un~tedStales Court oC Federal
Claims, or thr Jislricl court of the United States for thc Distrirt of Columbia with
respec1 10 an actud cor~uoversyinvolving a determination by ~ h Service
c
or a railurr
of the Scrvice lo make a derermination with respect to the initial or cunlinuing
qualificalion ur clashificarirrn of at1 organization under 5 501(c)(R, (char~tablc.
educat~onal,ctc I; $ 1 7 0 ( ~ ) ( 2(deductibility
)
of contributions); 5 509ia) (pr~vatc
foiundation slatus), or.h 4942(~)(3)(operaling foundation staturj

Exhamtion of

.O? Before tilitlg a declaratory judgmcnt actiun. an urganltdtwn must exhaust
its administrative remedies by (,?king, in a timely rnanncr. all rcasanabls step3 r o
secure a determination from the Service These includc:

adminiqtraiive remedies

(1) thc filing of a s u b s ~ m t ~ a lcompltrrd
ly
application Form 1023 or group
cxemptiun rcqucst under 5 50l(cj!3) pllrsuanl lo secrlorl3.08 of this Revenue
Proccdurc ur the request for a determination uT roundatlon status pursuant to
Rcv. Pruc. 76-34;

(2) in appropriate cases, requesrlnp relret' pursuant to $ 301.9100- 1 of thc
Procedi~rcmd Adminislralion Rrgulal~unsrcgardlnp [he extension o l tlnle for
m a k l n ~an clcction or applicat~onfor relief from tah (rce Rev. Proc. 92-85, 1992-2
U.B 490).

(3 1 ~ h timely
c
submission or all additional inlormation requested by the
Serv~ccto pcrfcct an exemption application or request for determin;\tir~nof private
hund3tlc)n stalus; and
(4)cxhaus~irmnC a11 administra~iveappeals available wrthin the Service
pursuant to section 7
.03 An orpanlzalluI1 ~ 1 1 in
1 no e \ r l l l hr dte~nedto have exhausted ~ t s
Not earlier than 270 days
admrnistrative remed~espnor lo thc carlicr vl
after seeking
determination
(1) the complr~ionof rhe clep? 111 scctlon I 0 02 and thc scnding by the
Service by ccrtlfcd or registered mall nf a final deterrn~~~atron
lcttcr or rul~np:or

(2) the expiraiion of ihc 2 i 0 - d a y pcr~oddexrlherl in 9 7428(b)(2) in a case
where the Service has no1 issitcil 3. final dct~rrn~nahcln
lelter or ruling arid the
organization has taken, in a tin~zlymanncr. all rcasc~nabltsteps to secure a
delermir~atioriletter or n ~ l ~ n g .

Servire must have
04 The ~ l e p described
s
in section 10.02 will t~otbe considered complctcd
reasonable time to art on until thc Srrv~cehas had a reasonable tirne to act upon an appeal or protcst as thc
c 3sc may be.
an appeal or prolest
Final determination to
which Q: 7428 appli~s

I
I

05 A final de~errnina~i~m
LO which 3 7428 or the Code applies 1s a
deterrmnat~onlcttcr or ruling, sent by c e r ~ ~ f i eord registered null, which holds that
the organization is not dcscribcd in 3 501(c)(3) or 3 170(c)(2,, I < ;l public chnrlty
described In a part of 5 509 or 8 170(b)(l )(A) other than the pari under w h ~ r hh e
organlzatlon requested clstsslfication, 1s nut rt private toundatlon & defined In
3 4(142(~)13},or is a private foundation and not a public chanty dcscnbcd in a part of
3 SO9 ur 9 I70(b)(l)(A).

SECTION 11. EFFECT
OF DETERMINATION
LETTER OK RULING
RECOGNIZING
EXEMPTION
Effective date of
exemption

.01 A determ~na~inn
lrnrr crr ruliny resognlzlng exen~ptionis usually cffcct~vc

as of he date of formarlon n f an n r g u ~ ~ w l IiIci t~s purposes
~
and activit~esprior to the
dale ut' the determinarion let ~ e ar
r ruling were consistent w ~ t hthe requ~re~nents
for
cxcmptlun. However, sprcial rules under 9 508(d] of the C d e may apply to an
organlzatiun applying for cxcmp!lun under 3 501(c)(3),and special rules under
8 505(c) may apply ir, an organ^ 7 a ~ o napplying for exemption under $ 5 501 (c}(9}.
( 1 7). or (20).
( I ) If thc Serb ~ c crequlrcs thc. nrgml/.atlon to alter its activities or make
s u h s ~ m t i v eamendm~r~ts
to its ~ n a b l l n glnslritnienr, the exemption will be effective as
oT the date spec~tizd ti 3 detertni113r1ot1Icttct. or, rul~ng.

(2) I t the Service requires the organization to

m&c

a nonsubhtint~vc

amcndmcnr, exemprlon will ordinarily he recognized as of thc dale of furmatir>n.

Erarnplcs ut nc~osubstantiveamendments include correction of a clcncal error In the
cnnblrng lnstrumcnt or [he addition of a dissolution clause where the act~viticsof thc
orpanization prlur to the determination leurr or ruling are consistent with thc
rtc)r cnemption.

Reliance on
determination letter or
ruling

02 .A determination letter or ruling recognizing cxcmption may not be relied
upun I! thcrs IS a material change, inconsistent with exelnption, in thc character, the
purposc, or thc mcthod of operation of the nrgw~/:ation. Also. a determination letter
or ruling may not be rclicJ upon if i t was based on any inaccurate material factual
representations. Srr section 12.01.

SECTION 12.
KEVOCATION OR
MOUlFICATION OF
DETEKMINATION
LETTER OR KU1,INC;
RECOGNIZING
EXEMPTION

A determinat~nnIrtler crr rul~ngrccognizlng exemption may be revoked or
rntld~fiedby ( I ) a nrlhoe ro he t x p a y r r to whom the determination letter or ruling
was ~ssucd,(2) cnxlment of legl~la~lon
or n ~ ~ f i c a t l nofn a tax treaty, (3) a decislon
of the United Statcs Supreme Cuurt. (J)thr isfu~n'r of ~errjporaryor final
rcgulat~ons,or ( 5 ) thc Issudncr ut a rercnur rul~ng,rc\r.nue prnvrdurc. @rorl~zr
statement published ~n the Internal R c ~ c n ~ Bullctin
rc

Revwation ur
.O1 'The revocario~)or mod~r~caliun
or n delernunatton letrer or ruling
modification of a
recogniring exernpiion m a y be ret roacr ive ~rthe organization omitted or misstated a
rrjaterial fact, operaled in a inanner maler~al[yd~fferentfrom that originally
determination letter ur
ruling may be retroactive represented, t)r. In thr o w or organiznrions ro which 4 503 o l the Code applies.
engagcd In a pruhib~tediransxrlon w ~ ~he hpurpose of divert~ngcorpi~sor income of
thc organiza~iunIrum 11s exempt purpohc and such LransiicLlmn lnvolved a substantial
part of the corpus or lnconh: of such clrg3nlzatlon In ccrtaln cascs an urgani/at~on
may seek rel~efirom retrod~ctiverevwatlon or modlficat~onof a dctcrminatiun lcttcr
ur ruling unJer 9 7905(h) Kequeqts Ibr J 7305th~rel~eraresubject to the procedures
scl forth I n RC'L. Pruc 1007-5
( I ) Where there is a material chntigz, i~lcutlsistentwith cxcmption. 111 thc
character, the purpose, or the method of opratlorl o l an organization, revocation or
modification will ordinarily take effect as of the h r t . of such material change.
(2) In he case where a determination letter or ruling i s issued in error or is no
longcr in accord with the Serv~ce'sposition and S: 7805(h) relief is granted (see
scctlons I 3 and 14 of Rev. Prw. 2007-4), ordinarily, the reuncarlon or modirication
will be effective not earlier than thc datc whcn thc Scrvice modjfics ur revokes the
original determination Icttcr or ruling

Appeal and cot~feretlce
prucedures in the cast. of

revocation or
mndirication of exempt
slatus letter

02 In the ~ x oTa
e revocation or ~i~odification
of a dctcrm~na~i~)n
ler!cr o r
ruling, lhc 3ppeal and conference ~ ~ O C E ~ Uarc
~ Egenerally
S
thc samc irs sct our 10
section 7 of these procedures, including the right of thc organizlition t c j reque.File Typeapplication/pdfFile Modified2007-03-28File Created2007-03-28