Rp 2020-5

26 CFR 601.201: Rulings and determination letters

Rev. Proc. 2020-5
TABLE OF CONTENTS
SECTION 1. WHAT IS THE PURPOSE OF THIS REVENUE PROCEDURE? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .243
Description of terms used in this revenue procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .243
Updated annually. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .244
SECTION 2. NATURE OF CHANGES TO REV. PROC. 2019-5 AND RELATED REVENUE PROCEDURES
AND FORMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .244

:KDWFKDQJHVKDYHEHHQPDGHWR5HY3URF" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .244
Related revenue procedures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .245
Related forms that are not a request for a determination letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .245
Related revenue procedure expected to be published after Rev. Proc. 2020-5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .246
SECTION 3. UNDER WHAT CIRCUMSTANCES DOES EO DETERMINATIONS ISSUE
DETERMINATION LETTERS? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .246
Matters on which EO Determinations will issue a determination letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .246
Circumstances under which determination letters are not issued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .247
Technical advice may be requested in certain cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .248
Review of determination letters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .248
Determination letter based solely on administrative record . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .248
SECTION 4. WHAT ARE THE GENERAL INSTRUCTIONS FOR REQUESTING DETERMINATION LETTERS? . .249
In general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .249
Format of request. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .249
Form 1023 application. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .249
Form 1023-EZ application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .249
Form 1024 application. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .250
Form 1024-A application. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .250
Form 1028 application. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .250
Form 8940 request for miscellaneous determination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .250
Letter request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .251
Language requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .251
Signature on request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .251
Power of attorney and declaration of representative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .251
Penalty of perjury statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .252
Applicable user fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .252

:KHUHZLOOFRSLHVRIWKHGHWHUPLQDWLRQOHWWHUEHVHQW" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .253
Expedited processing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .253
Non-acceptance for processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .253
How to check on status of request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .254
SECTION 5. WHAT ARE THE SPECIFIC PROCEDURES FOR REQUESTING A DETERMINATION
LETTER BY LETTER? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .254
In general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .254
Certain information required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .254
Statement of facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .254
Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .254
Analysis of material facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .255
Same or similar issue previously submitted or currently pending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .255
Statement of authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .255

Bulletin No. 2020–1

241

January 2, 2020

SECTION 6. WHAT ARE THE SPECIFIC PROCEDURES FOR APPLICATIONS FOR RECOGNITION OF
EXEMPT STATUS UNDER § 501 OR § 521? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .256
In general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .256

7HUURULVWRUJDQL]DWLRQVQRWHOLJLEOHWRDSSO\IRUUHFRJQLWLRQRIH[HPSWLRQ. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .256
Format of application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .256
Form 8718 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .256
Form 1023-EZ applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .256
Form 1023 and Form 1023-EZ applications for reinstatement after automatic revocation . . . . . . . . . . . . . . . . . . . . . . . . . . .258

:KDWDUHWKHUHTXLUHPHQWVIRUDFRPSOHWHGDSSOLFDWLRQ" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .259
Requirements for a completed application other than a Form 1023-EZ application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .259
Requirements for a completed Form 1023-EZ application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .259

:KDWDUHWKHVWDQGDUGVIRULVVXLQJDGHWHUPLQDWLRQOHWWHURQH[HPSWVWDWXV" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .260
Exempt status must be established in application, including attestation and supporting documents . . . . . . . . . . . . . . . . . . . .260

([HPSWVWDWXVPD\EHUHFRJQL]HGLQDGYDQFHRIDFWXDORSHUDWLRQV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .260
Even if application is complete, additional information may be required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .260
Effective date of exemption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .280
SECTION 7. WHAT ARE THE SPECIFIC PROCEDURES FOR DETERMINATION LETTER REQUESTS ON
FORM 8940? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .261
In general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .262
Requests made on Form 8940 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .262

,QLWLDOFODVVL¿FDWLRQRISULYDWHIRXQGDWLRQVWDWXV. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .262

8QGHUZKDWFLUFXPVWDQFHVPXVWDQRUJDQL]DWLRQUHTXHVWDGHWHUPLQDWLRQRIIRXQGDWLRQVWDWXVDQGZKHQLV
VXFKDUHTXHVWRSWLRQDO" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .262
Not applicable to notices submitted by private foundations regarding terminations under § 507 or changes of
status pursuant to examination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .263
SECTION 8. WITHDRAWAL OF A REQUEST FOR DETERMINATION LETTER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .263
Request may be withdrawn prior to issuance of a determination letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .263
Section 7428 implications of withdrawal of application under § 501(c) or (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .263
SECTION 9. PROCEDURES FOR ADVERSE DETERMINATION LETTERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .263
In general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .263

7\SHVRIUHTXHVWVWKDWPD\UHFHLYH,QGHSHQGHQW2I¿FHRI$SSHDOVFRQVLGHUDWLRQ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .263
Contents of proposed adverse determination letter for requests with appeals rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .264
Protest/appeal of a proposed adverse determination letter on certain issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .264
Final adverse determination letter where no protest/appeal is submitted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .264
Review of protest by EO Determinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .264

&RQVLGHUDWLRQE\WKH,QGHSHQGHQW2I¿FHRI$SSHDOV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .264
Effect of new information raised in protest/appeal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .265
An appeal or protest may be withdrawn . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .265
Appeal and conference rights not applicable in certain situations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .265

$GYHUVHGHWHUPLQDWLRQOHWWHURQDQLVVXHWKDWZLOOQRWUHFHLYHFRQVLGHUDWLRQE\WKH,QGHSHQGHQW2I¿FHRI$SSHDOV . . . . . . .265
SECTION 10. DECLARATORY JUDGMENT PROVISIONS OF § 7428 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .265
Actual controversy involving certain issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .265
Final determination to which § 7428 applies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .265
Failure to make a determination to which § 7428 applies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .265
Section 7428 does not apply to the non-acceptance or withdrawal of a request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .265
Exhaustion of administrative remedies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .265
Not earlier than 270 days after seeking determination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .267
Service must have reasonable time to act on an appeal or protest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .267
SECTION 11. FAVORABLE DETERMINATION LETTERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .267
Reliance on determination letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .267
Limitations on reliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .267
Post-determination review. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .268

January 2, 2020

242

Bulletin No. 2020–1

SECTION 12. REVOCATION OR MODIFICATION OF A DETERMINATION LETTER . . . . . . . . . . . . . . . . . . . . . . . . .268

$SSHDODQGFRQIHUHQFHSURFHGXUHVLQWKHFDVHRIUHYRFDWLRQRUPRGL¿FDWLRQRIH[HPSWVWDWXVOHWWHU . . . . . . . . . . . . . . . . . . .268

2UJDQL]DWLRQPD\UHTXHVWWKDWUHWURDFWLYLW\EHOLPLWHGXQGHU†E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .269

(IIHFWLYHGDWHRIUHYRFDWLRQRUPRGL¿FDWLRQRIDGHWHUPLQDWLRQOHWWHURQH[HPSWVWDWXV . . . . . . . . . . . . . . . . . . . . . . . . . . . . .270
SECTION 13. DISCLOSURE OF APPLICATIONS AND DETERMINATION LETTERS INCLUDING THAT
OF FOUNDATION STATUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .270
Determination letter will be disclosed under § 6104 or § 6110 depending on the type of request and the type of
determination letter issued. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .270
Disclosure of applications, supporting documents, and favorable determination letters under § 6104 . . . . . . . . . . . . . . . . . .271
Disclosure of determination letters under § 6110 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .271
Taxpayer may protest disclosure under § 6110 of certain information in a determination letter . . . . . . . . . . . . . . . . . . . . . . .271
Taxpayer may request delay of public inspection under § 6110 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .271

'LVFORVXUHWRVWDWHRI¿FLDOVZKHQWKH6HUYLFHUHIXVHVWRUHFRJQL]HH[HPSWLRQXQGHU†F . . . . . . . . . . . . . . . . . . . . . .272

'LVFORVXUHWRVWDWHRI¿FLDOVRILQIRUPDWLRQDERXW†FDSSOLFDQWV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .272
SECTION 14. WHAT ARE THE USER FEE REQUIREMENTS FOR DETERMINATION LETTERS? . . . . . . . . . . . . . .272

/HJLVODWLRQDXWKRUL]LQJXVHUIHHV. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .272
Requests to which user fees apply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .272
Requests and other actions to which user fees do not apply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .273
Exemption from the user fee requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .273
Requests involving multiple fee categories, issues, or entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .273
Method of payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .273
Transmittal forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .274
Effect of nonpayment or payment of incorrect amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .274
Refunds of user fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .274
Request for reconsideration of user fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .275
SECTION 15. MAILING ADDRESS FOR REQUESTING DETERMINATION LETTERS . . . . . . . . . . . . . . . . . . . . . . . . .275
SECTION 16. EFFECT OF THIS REVENUE PROCEDURE ON OTHER DOCUMENTS. . . . . . . . . . . . . . . . . . . . . . . . . .276
SECTION 17. EFFECTIVE DATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .276
SECTION 18. PAPERWORK REDUCTION ACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .276
DRAFTING INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .277
APPENDIX A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .278
APPENDIX B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .280
SECTION 1. WHAT IS
THE PURPOSE OF THIS
REVENUE PROCEDURE?

Description of terms used in
this revenue procedure

This revenue procedure sets forth procedures for issuing determination letters on issues under
WKHMXULVGLFWLRQRIWKH'LUHFWRU([HPSW2UJDQL]DWLRQV(25XOLQJVDQG$JUHHPHQWV6SHFL¿FDOO\
it explains the procedures for issuing determination letters on exempt status (in response to applications for recognition of exemption from Federal income tax under § 501 or § 521 other than
WKRVHVXEMHFWWR5HY3URFWKLV%XOOHWLQUHODWLQJWRSHQVLRQSUR¿WVKDULQJVWRFNERQXV
annuity, and employee stock ownership plans)), private foundation status, and other determinaWLRQVUHODWHGWRH[HPSWRUJDQL]DWLRQV7KHVHSURFHGXUHVDOVRDSSO\WRUHYRFDWLRQRUPRGL¿FDWLRQ
of determination letters. This revenue procedure also provides guidance on the exhaustion of
administrative remedies for purposes of declaratory judgment under § 7428. Finally, this revenue
procedure provides guidance on applicable user fees for requesting determination letters.
.01 For purposes of this revenue procedure–
(1) The term “Service” means the Internal Revenue Service.

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7KHWHUP³(25XOLQJVDQG$JUHHPHQWV´PHDQVWKHRI¿FHLQ(2WKDWLVSULPDULO\UHVSRQVLEOH
for up-front, customer-initiated activities such as determination letter requests, taxpayer assisWDQFHDQGDVVLVWDQFHWRRWKHU(2RI¿FHV7KH(25XOLQJVDQG$JUHHPHQWVRI¿FHLQFOXGHVWKH
RI¿FHVRI(2'HWHUPLQDWLRQVDQG(2'HWHUPLQDWLRQV4XDOLW\$VVXUDQFH
7KHWHUP³(2'HWHUPLQDWLRQV´PHDQVWKHRI¿FHLQ(25XOLQJVDQG$JUHHPHQWVRIWKH6HUvice that is primarily responsible for processing requests for determination letters.
7KHWHUP³,QWHUQDO5HYHQXH6HUYLFH,QGHSHQGHQW2I¿FHRI$SSHDOV´,QGHSHQGHQW2I¿FHRI
$SSHDOVPHDQVDQ\RI¿FHXQGHUWKHGLUHFWLRQDQGFRQWURORIWKH&KLHIRI$SSHDOV7KHSXUSRVHRI
WKH,QGHSHQGHQW2I¿FHRI$SSHDOVLVWRUHVROYHWD[FRQWURYHUVLHVZLWKRXWOLWLJDWLRQRQDIDLUDQG
LPSDUWLDOEDVLV7KH,QGHSHQGHQW2I¿FHRI$SSHDOVLVLQGHSHQGHQWRI(25XOLQJVDQG$JUHHPHQWV
(5) The term “determination letter” means a written statement issued by EO Determinations or
WKH,QGHSHQGHQW2I¿FHRI$SSHDOVLQUHVSRQVHWRDUHTXHVWIRUWKH6HUYLFH¶VUXOLQJRQDTXHVWLRQ
of exempt status, foundation status, or other determination under the jurisdiction of the Director,
EO Rulings and Agreements. This includes a written statement issued by EO Determinations or
DQRI¿FHRIWKH,QGHSHQGHQW2I¿FHRI$SSHDOVRQWKHEDVLVRIDGYLFHVHFXUHGIURPWKH2I¿FHRI
WKH$VVRFLDWH&KLHI&RXQVHO(PSOR\HH%HQH¿WV([HPSW2UJDQL]DWLRQVDQG(PSOR\PHQW7D[HV
pursuant to the procedures prescribed in Rev. Proc. 2020-2, this Bulletin. A determination letter
DSSOLHVWKHSULQFLSOHVDQGSUHFHGHQWVSUHYLRXVO\DQQRXQFHGWRDVSHFL¿FVHWRIIDFWV
7KHWHUP³UHTXHVW´PHDQVWKHZULWWHQVXEPLVVLRQWKDWDQRUJDQL]DWLRQXVHVWRREWDLQDGHWHUmination letter in accordance with the requirements of this revenue procedure.
(7) The term “application” means a request for recognition of exemption from Federal income
tax under § 501 or § 521.
Updated annually

.7KLVUHYHQXHSURFHGXUHLVXSGDWHGDQQXDOO\EXWPD\EHPRGL¿HGRUDPSOL¿HGGXULQJWKH
year.

SECTION 2. NATURE
OF CHANGES TO REV.
PROC. 2019-5 AND
RELATED REVENUE
PROCEDURES AND
FORMS
What changes have been
made to Rev. Proc. 2019-5?

.01 This revenue procedure updates Rev. Proc. 2019-5, which deals with procedures for issuing
([HPSW2UJDQL]DWLRQGHWHUPLQDWLRQOHWWHUV1RWDEOHFKDQJHVWR5HY3URFWKDWDSSHDULQ
this year’s update include –
³$SSHDOV2I¿FH´ZDVFKDQJHGWR³,QGHSHQGHQW2I¿FHRI$SSHDOV´WKURXJKRXWWRUHÀHFWWKH
RI¿FH¶VQDPHFKDQJH
(2) Section 2.04 was added, which announces that an electronic version of Form 1023 is expected to replace the paper Form 1023 in 2020.
(3) Clarifying language regarding Rev. Proc. 2018-15 was added to sections 2.02(6), 3.01(1),
and 3.02.

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(4) Sections 4.04 and 4.06(2) were amended to conform to the current practice of permitting
taxpayers to submit faxed signatures in certain situations.
 6HFWLRQ  ZDV DPHQGHG WR VWDWH WKDW DQ RUJDQL]DWLRQ DSSO\LQJ IRU UHFRJQLWLRQ RI
tax-exempt status after 27 months from formation under §501(c)(3) may not use Form 1023-EZ
LILWUHTXHVWVDQHIIHFWLYHGDWHHDUOLHUWKDQWKHVXEPLVVLRQGDWHEXWLQVWHDGPXVW¿OHD)RUP
$SSHQGL[$ZDVDPHQGHGWRUHÀHFWFKDQJHVLQVHYHUDOGHWHUPLQDWLRQOHWWHUXVHUIHHVDVRI
July 1, 2020.
(7) Editorial changes were made throughout including minor non-substantive changes, dates,
DQGFURVVUHIHUHQFHV&LWDWLRQVWRRWKHUUHYHQXHSURFHGXUHVZHUHFKDQJHGWRUHÀHFWWKHDSSURSULate annual revenue procedures.
Related revenue procedures

.02 This revenue procedure supplements the following revenue procedures–
(1) Rev. Proc. 80-27, 1980-1 C.B. 677, which sets forth procedures under which exemption may
EHUHFRJQL]HGRQDJURXSEDVLVIRUVXERUGLQDWHRUJDQL]DWLRQVDI¿OLDWHGZLWKDQGXQGHUWKHJHQHUDO
VXSHUYLVLRQDQGFRQWURORIDFHQWUDORUJDQL]DWLRQ
(2) Rev. Proc. 72-5, 1972-1 C.B. 709, which provides information for religious and apostolic
RUJDQL]DWLRQVVHHNLQJUHFRJQLWLRQRIH[HPSWLRQXQGHU†G
(3) Rev. Proc. 2015-17, 2015-7 I.R.B. 599, which provides information regarding procedures
IRURUJDQL]DWLRQVGHVFULEHGLQ†F
(4) Rev. Proc. 2014-11, 2014-3 I.R.B. 411, which sets forth procedures for reinstating the
WD[H[HPSWVWDWXVRIRUJDQL]DWLRQVWKDWKDYHKDGWKHLUWD[H[HPSWVWDWXVDXWRPDWLFDOO\UHYRNHG
under § 6033(j)(1).
5HY3URF,5%ZKLFKVHWVIRUWKWKHSURFHGXUHIRUDQRUJDQL]DWLRQ
WRQRWLI\WKH6HUYLFHFRQVLVWHQWZLWK†WKDWLWLVRSHUDWLQJDVDQRUJDQL]DWLRQGHVFULEHGLQ
§ 501(c)(4).
(6) Rev. Proc. 2018-15, 2018-9 I.R.B. 379, which describes the circumstances under which a
GRPHVWLF†FRUJDQL]DWLRQWKDWFKDQJHVLWVIRUPRUSODFHRIRUJDQL]DWLRQZLOOQRWEHUHTXLUHG
WR¿OHDQHZH[HPSWLRQDSSOLFDWLRQDQGVXFKDQRUJDQL]DWLRQ¶VUHSRUWLQJUHTXLUHPHQWV

Related forms that are not a
request for a determination
letter

.03 Forms that are not requests for a determination. &HUWDLQRUJDQL]DWLRQVDUHUHTXLUHGWR
submit the following forms, but such forms are not requests for a determination and, thus, are not
subject to the procedures in this revenue procedure.
(1) Form 8871, 3ROLWLFDO2UJDQL]DWLRQ1RWLFHRI6HFWLRQ6WDWXV. A political party, a camSDLJQFRPPLWWHHIRUDFDQGLGDWHIRU)HGHUDOVWDWHRUORFDORI¿FHDQGDSROLWLFDODFWLRQFRPPLWWHH
DUHDOOSROLWLFDORUJDQL]DWLRQVVXEMHFWWRWD[XQGHU†7REHWD[H[HPSWDSROLWLFDORUJDQL]DWLRQ
PD\EHUHTXLUHGWRQRWLI\WKH6HUYLFHWKDWLWLVWREHWUHDWHGDVD†RUJDQL]DWLRQE\HOHFWURQLFDOO\¿OLQJ)RUPPolitical Organization Notice of Section 527 Status. See irs.gov (“Tax
,QIRUPDWLRQIRU3ROLWLFDO2UJDQL]DWLRQV´

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January 2, 2020

(2) Form 8976, 1RWLFH RI ,QWHQW WR 2SHUDWH 8QGHU 6HFWLRQ F$Q RUJDQL]DWLRQ GHVFULEHGLQ†FPXVWQRODWHUWKDQGD\VDIWHUWKHGDWHWKHRUJDQL]DWLRQLVHVWDEOLVKHG
QRWLI\WKH6HUYLFHWKDWLWLVRSHUDWLQJDVDQRUJDQL]DWLRQGHVFULEHGLQ†FE\VXEPLWWLQJD
completed Form 8976, 1RWLFHRI,QWHQWWR2SHUDWH8QGHU6HFWLRQF and accompanying
user fee. See irs.gov (“Electronically Submit Your Form 8976, Notice of Intent to Operate Under
Section 501(c)(4)”).
Related revenue procedure
expected to be published
after Rev. Proc. 2020-5

.04 An electronic version of Form 1023 is expected to replace the paper Form 1023 in 2020. A
revenue procedure is expected to be published to provide information on and procedures for the
new electronic Form 1023, including the applicable transition period.

SECTION 3.
UNDER WHAT
CIRCUMSTANCES DOES
EO DETERMINATIONS
ISSUE DETERMINATION
LETTERS?
Matters on which EO
Determinations will issue a
determination letter

.(2'HWHUPLQDWLRQVLVVXHVGHWHUPLQDWLRQOHWWHUVRQWKHIROORZLQJPDWWHUV
,QLWLDOTXDOL¿FDWLRQIRUH[HPSWVWDWXVRIRUJDQL]DWLRQVGHVFULEHGLQ†RU†LQFOXGLQJ
UHLQVWDWHPHQWRIRUJDQL]DWLRQVWKDWKDYHEHHQDXWRPDWLFDOO\UHYRNHGSXUVXDQWWR†MDQG
VXERUGLQDWHRUJDQL]DWLRQVLQFOXGHGLQDJURXSH[HPSWLRQOHWWHUWKDWKDYHEHHQUHYRNHGSXUVXDQW
to that provision). See Rev. Proc. 2018-15 for procedures applicable to an entity changing its form
RUVWDWHRIRUJDQL]DWLRQ
8SGDWHGH[HPSWVWDWXVOHWWHUDI¿UPDWLRQOHWWHUWRUHÀHFWFKDQJHVWRDQRUJDQL]DWLRQ¶VQDPH
or address, or to replace a lost exempt status letter;
&ODVVL¿FDWLRQRUUHFODVVL¿FDWLRQRISULYDWHIRXQGDWLRQVWDWXVLQFOXGLQJZKHWKHUDQRUJDQL]DWLRQLV²
(a) A private foundation;
(b) A public charity described in §§ 509(a)(1) and 170(b)(1)(A) (other than clauses (v), (vii),
and (viii));
(c) A public charity described in § 509(a)(2) or (4);
G$SXEOLFFKDULW\GHVFULEHGLQ†DZKHWKHUVXFKRUJDQL]DWLRQLVGHVFULEHGLQ†D
%LLLRULLL³VXSSRUWLQJRUJDQL]DWLRQW\SH´DQGZKHWKHURUQRWD7\SH,,,VXSSRUWLQJ
RUJDQL]DWLRQLVIXQFWLRQDOO\LQWHJUDWHG
(e) A private operating foundation described in § 4942(j)(3); or
(f) An exempt operating foundation described in § 4940(d)(2).
5HFRJQLWLRQRIXQXVXDOJUDQWVWRFHUWDLQRUJDQL]DWLRQVXQGHU††E$YLDQGD
(2);

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(5) Requests for relief under § 301.9100-1 of the Procedure and Administration Regulations in
connection with applications for recognition of exemption;
(6) Terminations of private foundation status under § 507(b)(1)(B);
(7) Advance approval of certain set-asides described in § 4942(g)(2);
$GYDQFHDSSURYDOXQGHU†JRIRUJDQL]DWLRQV
JUDQWPDNLQJSURFHGXUHV
(9) Advance approval of voter registration activities described in § 4945(f);
:KHWKHUDQRUJDQL]DWLRQLVH[HPSWIURP¿OLQJDQQXDOLQIRUPDWLRQUHWXUQVXQGHU†
as provided in Treas. Reg. § 1.6033-2(g)(1), Rev. Proc. 95-48, 1995-2 C.B. 418, and Rev. Proc.
96-10, 1996-1 C.B. 577;
(11) Determination of foundation status under § 509(a)(3) of non-exempt charitable trusts described in § 4947(a)(1); and
(12) Government entity voluntary termination of § 501(c)(3) recognition (must include docuPHQWDWLRQWKDWWKHRUJDQL]DWLRQLVQRWVXEMHFWWRLQFRPHWD[RWKHUWKDQXQGHU†D
Circumstances under which
determination letters are
not issued

.02 The Service may decline to issue a determination letter when appropriate in the interest of
sound tax administration or on other grounds whenever warranted by the facts or circumstances
of a particular case. In addition, the Service will not issue a determination letter in response to any
request if—
(1) the request involves an issue under the jurisdiction of the Associate Chief Counsel described
in Rev. Proc. 2020-1, this Bulletin;
(2) the same issue involving the same taxpayer or a related taxpayer is pending in a case in
OLWLJDWLRQ RU EHIRUH WKH ,QGHSHQGHQW 2I¿FH RI$SSHDOV ,I WKH LVVXH LQ OLWLJDWLRQ LQYROYLQJ WKH
VDPHWD[SD\HURUDUHODWHGWD[SD\HULVQRWWKHWD[SD\HURUDUHODWHGWD[SD\HU¶VTXDOL¿FDWLRQDVD
tax-exempt entity (such as a declaratory judgment action under § 7428), the Service may issue a
determination letter on exempt status after consultation with counsel;
(3) the determination letter is requested by an industry, trade association, or similar group on
EHKDOIRILQGLYLGXDOWD[SD\HUVZLWKLQWKHJURXSRWKHUWKDQVXERUGLQDWHRUJDQL]DWLRQVFRYHUHGE\
a group exemption letter);
WKHGHWHUPLQDWLRQOHWWHULVUHTXHVWHGE\DQRUJDQL]DWLRQVHHNLQJWRTXDOLI\XQGHU†F
(6) of the Internal Revenue Code whose purpose is directed to the improvement of business conditions of one or more lines of business relating to an activity involving controlled substances
(within the meaning of schedule I and II of the Controlled Substances Act, 21 U.S.C.S. § 801
et seq.) which is prohibited by Federal law regardless of its legality under the law of the state in
which such activity is conducted;
(5) the request is based on alternative plans of proposed transactions or on hypothetical situaWLRQV$QDSSOLFDWLRQEDVHGRQSURSRVHGDFWLYLWLHVWKDWVDWLV¿HVVHFWLRQUHODWHGWRUHFRJ-

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January 2, 2020

QL]LQJH[HPSWVWDWXVLQDGYDQFHRIDFWXDORSHUDWLRQVLVQRWFRQVLGHUHGWREHEDVHGRQK\SRWKHWLFDO
situations;
DQRUJDQL]DWLRQFXUUHQWO\UHFRJQL]HGDVH[HPSWXQGHU†FVHHNVDQHZGHWHUPLQDWLRQ
OHWWHUFRQ¿UPLQJWKDWWKHRUJDQL]DWLRQLVVWLOOUHFRJQL]HGXQGHUWKHVDPH&RGHVHFWLRQXQGHUWKH
currently extant facts;
 DQ RUJDQL]DWLRQ VHHNV D GHWHUPLQDWLRQ RI IRXQGDWLRQ VWDWXVWKDW LV LGHQWLFDO WR LWV FXUUHQW
IRXQGDWLRQVWDWXVDVGHWHUPLQHGE\(2'HWHUPLQDWLRQV)RUH[DPSOHDQRUJDQL]DWLRQWKDWLVDOUHDG\UHFRJQL]HGDVGHVFULEHGLQ††DDQGE$LLDVDVFKRROJHQHUDOO\ZLOOQRW
receive a new determination letter that it is still described in §§ 509(a)(1) and 170(b)(1)(A)(ii)
under the currently extant facts;
DQRUJDQL]DWLRQFXUUHQWO\UHFRJQL]HGDVGHVFULEHGLQ†FVHHNVDGHWHUPLQDWLRQOHWWHU
UHFRJQL]LQJWKHRUJDQL]DWLRQDVGHVFULEHGLQDGLIIHUHQWVXEVHFWLRQRI†F
DQRUJDQL]DWLRQFXUUHQWO\UHFRJQL]HGDVH[HPSWXQGHU†FRWKHUWKDQDJRYHUQPHQW
HQWLW\DV VSHFL¿HGLQVHFWLRQ UHTXHVWVDGHWHUPLQDWLRQWRUHOLQTXLVKLWVH[HPSWVWDWXV
under § 501(a); or
DGRPHVWLFRUJDQL]DWLRQFXUUHQWO\UHFRJQL]HGDVH[HPSWXQGHU†FVHHNVDGHWHUPLQDWLRQOHWWHUEXWLVQRWUHTXLUHGWRUHDSSO\EHFDXVHLWKDVFKDQJHGLWVIRUPRUVWDWHRIRUJDQL]DWLRQLQ
DFFRUGDQFHZLWKWKHUHTXLUHPHQWVLQ5HY3URF$QRUJDQL]DWLRQPD\UHTXHVWDQDI¿UPDWLRQOHWWHUWRUHÀHFWFKDQJHVWRLWVQDPHRUDGGUHVVDVSURYLGHGLQVHFWLRQ
Note:,QVRPHFLUFXPVWDQFHVDQRUJDQL]DWLRQPD\VHHNDOHWWHUUXOLQJIURPWKH$VVRFLDWH&KLHI
&RXQVHO(PSOR\HH%HQH¿WV([HPSW2UJDQL]DWLRQVDQG(PSOR\PHQW7D[HVRQDVSHFL¿FOHJDO
LVVXH LQFOXGLQJ ZKHWKHU DQ DFWLYLW\ IXUWKHUV DQ RUJDQL]DWLRQ¶V H[HPSW SXUSRVH See Rev. Proc.
2020-1 and Rev. Proc. 2020-3, this Bulletin.
Technical advice may be
requested in certain cases

.03 EO Determinations generally issues determination letters only if the question presented is
answered by a statute, tax treaty, regulation, court opinion, or guidance published in the Internal
Revenue Bulletin. At any time during the course of consideration by EO Determinations, if either
(2'HWHUPLQDWLRQVRUWKHRUJDQL]DWLRQEHOLHYHVWKDWLWVFDVHLQYROYHVDQLVVXHRQZKLFKWKHUHLVQR
published precedent, or there has been non-uniformity in the Service’s handling of similar cases,
(2'HWHUPLQDWLRQVPD\GHFLGHWRVHHNRUWKHRUJDQL]DWLRQPD\UHTXHVWWKDW(2'HWHUPLQDWLRQV
VHHNWHFKQLFDODGYLFHIURPWKH2I¿FHRI$VVRFLDWH&KLHI&RXQVHOZLWKVXEMHFWPDWWHUMXULVGLFWLRQ
over the issue. See Rev. Proc. 2020-2, this Bulletin.

Review of determination
letters

.04 Determination letters issued under this revenue procedure are not generally reviewed by any
RWKHURI¿FHRXWVLGHRI(25XOLQJVDQG$JUHHPHQWVEHIRUHWKH\DUHLVVXHG)RUSRVWGHWHUPLQDWLRQ
review of determination letters by EO Determinations Quality Assurance, see section 11.03 of this
revenue procedure.

Determination letter based
solely on administrative
record

.05 A determination letter is issued based solely upon the facts, attestations, and representations
contained in the administrative record.
(1) The taxpayer is responsible for the accuracy of any factual representations or attestations
contained in the request.

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$Q\RUDOUHSUHVHQWDWLRQRIDGGLWLRQDOIDFWVRUPRGL¿FDWLRQRIIDFWVDVUHSUHVHQWHGRUDOleged in the request, must be reduced to writing and signed by the taxpayer under a penalty of
perjury statement, in accordance with section 4.06 of this revenue procedure.
(3) The failure to disclose a material fact or misrepresentation of a material fact on the request,
which includes an incorrect representation or attestation, may adversely affect the reliance that the
RUJDQL]DWLRQVXEPLWWLQJWKHUHTXHVWZRXOGRWKHUZLVHREWDLQWKURXJKLVVXDQFHE\WKH6HUYLFHRID
favorable determination letter. See section 11.02 for additional information.
SECTION 4. WHAT
ARE THE GENERAL
INSTRUCTIONS
FOR REQUESTING
DETERMINATION
LETTERS?
In general

.01 This section explains the general instructions for requesting determination letters. However,
certain procedures do not apply to requests submitted on Form 1023-EZ, Streamlined Application
for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, as indicated
in this revenue procedure or in the form and its instructions. In addition to these general instrucWLRQVVSHFL¿FSURFHGXUHVDSSO\WRUHTXHVWVVXEPLWWHGE\OHWWHUDVGHVFULEHGLQVHFWLRQDSSOLFDtions for recognition of exemption from Federal income tax under § 501 or § 521 (as described in
section 6), and to requests for determinations submitted on Form 8940, Request for Miscellaneous
Determination (as described in section 7).

Format of request

.02 Which form, if any, should be used for the request? Some requests are made by letter and
VRPHUHTXHVWVDUHPDGHE\VXEPLWWLQJDVSHFL¿FIRUP

Form 1023 application

(1) Form 1023 application. $QRUJDQL]DWLRQVHHNLQJUHFRJQLWLRQRIH[HPSWLRQXQGHU†F
LQFOXGLQJDQRUJDQL]DWLRQWKDWLVDGGLWLRQDOO\VHHNLQJDGHWHUPLQDWLRQWKDWLWLVGHVFULEHGLQ†
501(e), (f), (k), (n), (q), or (r)) must submit a completed Form 1023, Application for Recognition
of Exemption Under Section 501(c)(3) of the Internal Revenue Code,QWKHFDVHRIDQRUJDQL]Dtion that provides credit counseling services, see†T,QWKHFDVHRIDQRUJDQL]DWLRQWKDWLVD
hospital and is seeking exemption under § 501(c)(3), see § 501(r). Notwithstanding the foregoing,
HOLJLEOHRUJDQL]DWLRQVPD\VHHNUHFRJQLWLRQRIH[HPSWLRQXQGHU†FE\VXEPLWWLQJDFRPpleted Form 1023-EZ, as described in section 6.06(2) of this revenue procedure, rather than by
submitting Form 1023.

Form 1023-EZ application

(2) Form 1023-EZ application. $Q HOLJLEOH RUJDQL]DWLRQ DV GHVFULEHG LQ VHFWLRQ  RI
this revenue procedure, may, but is not required to, seek recognition of tax-exempt status under
§ 501(c)(3) by submitting a completed electronic Form 1023-EZ.
$OWHUQDWLYHO\DQHOLJLEOHRUJDQL]DWLRQPD\VHHNH[HPSWLRQXQGHU†FE\VXEPLWWLQJD
completed Form 1023, as described in section 6.06(1).
For additional information about the electronic submission process, refer to Form 1023-EZ and
its Instructions.

Form 1024 application

Bulletin No. 2020–1

(3) Form 1024 application. $QRUJDQL]DWLRQVHHNLQJDGHWHUPLQDWLRQOHWWHUIURPWKH6HUYLFH
UHFRJQL]LQJH[HPSWLRQXQGHU†F
or (25) must submit a completed Form 1024, Application for Recognition of Exemption Under

249

January 2, 2020

Section 501(a), along with Form 8718, User Fee for Exempt Organization Determination Letter
Request.
2UJDQL]DWLRQV WKDW VHHN WR RSHUDWH XQGHU † F RU  PXVW DSSO\ IRU UHFRJQLWLRQ RI
tax-exempt status. See†2WKHURUJDQL]DWLRQVPD\FKRRVHWRVHHNDGHWHUPLQDWLRQOHWWHUUHFRJQL]LQJH[HPSWLRQXQGHU†E\¿OLQJ)RUPEXWDUHQRWUHTXLUHGWRGRVRH[FHSWLQFHUWDLQ
FDVHVVHHIRUH[DPSOH†MUHJDUGLQJIDLOXUHVWR¿OHDQQXDOLQIRUPDWLRQUHWXUQVRUDQQXDO
HOHFWURQLFQRWL¿FDWLRQVUHTXLUHGXQGHU†DRUL
Form 1024-A application

(4) Form 1024-A application.$QRUJDQL]DWLRQVHHNLQJDGHWHUPLQDWLRQOHWWHUIURPWKH6HUYLFH
UHFRJQL]LQJ H[HPSWLRQ XQGHU † F PXVW VXEPLW D FRPSOHWHG )RUP $, Application
IRU5HFRJQLWLRQRI([HPSWLRQ8QGHU6HFWLRQFRIWKH,QWHUQDO5HYHQXH&RGH, along with
)RUPDQGWKHDFFRPSDQ\LQJXVHUIHH,QWKHFDVHRIDQRUJDQL]DWLRQWKDWSURYLGHVFUHGLW
counseling services and seeks recognition of exemption under § 501(c)(4), see § 501(q).
6HFWLRQFRUJDQL]DWLRQVPD\FKRRVHWRVHHNDGHWHUPLQDWLRQOHWWHUUHFRJQL]LQJH[HPSWLRQXQGHU†FE\¿OLQJ)RUP$EXWDUHQRWUHTXLUHGWRGRVRH[FHSWLQFHUWDLQFDVHV
VHH IRU H[DPSOH † M UHJDUGLQJ IDLOXUHV WR ¿OH DQQXDO LQIRUPDWLRQ UHWXUQV RU DQQXDO
HOHFWURQLFQRWL¿FDWLRQVUHTXLUHGXQGHU†DRUL
6XEPLVVLRQRI)RUP$GRHVQRWUHOLHYHDQRUJDQL]DWLRQRIWKHUHTXLUHPHQWWRVXEPLW)RUP
8976, 1RWLFHRI,QWHQWWR2SHUDWH8QGHU6HFWLRQF.

Form 1028 application

(5) Form 1028 application. $QRUJDQL]DWLRQVHHNLQJUHFRJQLWLRQRIH[HPSWLRQXQGHU†
must submit a completed Form 1028, Application for Recognition of Exemption Under Section
521 of the Internal Revenue Code, along with Form 8718.

Form 8940 request
for miscellaneous
determination

(6) Form 8940 request for miscellaneous determination. The Form 8940, Request for Miscellaneous Determination,LVXVHGIRUWKHIROORZLQJGHWHUPLQDWLRQOHWWHUUHTXHVWV
(a) Advance approval of certain set-asides described in § 4942(g)(2);
(b) Advance approval of voter registration activities described in § 4945(f);
(c) Advance approval of scholarship procedures described in § 4945(g);
G([HPSWLRQIURP)RUP¿OLQJUHTXLUHPHQWV
(e) Advance approval that a potential grant or contribution constitutes an “unusual grant”;
I&KDQJHLQ7\SHRULQLWLDOGHWHUPLQDWLRQRI7\SHRID†DRUJDQL]DWLRQ
J5HFODVVL¿FDWLRQRIIRXQGDWLRQVWDWXVLQFOXGLQJDYROXQWDU\UHTXHVWIURPDSXEOLFFKDULW\IRU
private foundation status;
(h) Termination of private foundation status under § 507(b)(1)(B)—advance ruling request; and

January 2, 2020

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(i) Termination of private foundation status under § 507(b)(1)(B)—60-month period ended.
Letter request

(7) Letter request.
(a) Letter applications. L$QRUJDQL]DWLRQVHHNLQJUHFRJQLWLRQRIH[HPSWLRQXQGHU†F
(11), (14), (16), (18), (21), (22), (23), (26), (27), (28), or (29), or under § 501(d), must submit a
letter application along with Form 8718.
LL$FHQWUDORUJDQL]DWLRQWKDWKDVSUHYLRXVO\UHFHLYHGRULVFRQFXUUHQWO\UHTXHVWLQJUHFRJQLWLRQ
of its own exemption can request a group exemption letter by submitting a letter application along
with Form 8718.
(b) Other letter requests. Any determination letter request which is not required to be submitted on a form may be submitted by letter.

Language requirements

.03 All requests must be submitted in English. All documents submitted in support of such
requests must be in English, or accompanied by an accurate and complete English translation.

Signature on request

.04 Signature on request. The request for determination letter must be signed and dated by
the taxpayer or, when applicable, the taxpayer's representative. Neither a stamped signature nor a
faxed signature is permitted. However, a faxed signature is permitted if requested by the Service
LQWKHFDVHRIDQRUJDQL]DWLRQUHSODFLQJLWVLQLWLDOUHTXHVWZLWKDUHTXHVWIRUDGHWHUPLQDWLRQXQGHU
a different subsection of § 501(c) during processing of an initial request, or as otherwise requested
during the processing of an initial request.
(1) Individual authorized to sign Form 1023, 1023-EZ, or 8940 on behalf of an organization.
,QWKHFDVHRIDUHTXHVWIRUDGHWHUPLQDWLRQOHWWHUPDGHE\¿OLQJ)RUP)RUP(=RU)RUP
DQRI¿FHUGLUHFWRUWUXVWHHRURWKHURI¿FLDOZKRLVDXWKRUL]HGWRVLJQIRUWKHRUJDQL]DWLRQPXVW
VLJQWKHDSSOLFDEOHIRUP7KHVLJQDWXUHRIDUHSUHVHQWDWLYHDXWKRUL]HGE\DSRZHURIDWWRUQH\ZKRLV
QRWDQRI¿FHUGLUHFWRUWUXVWHHRURWKHURI¿FLDORIWKHRUJDQL]DWLRQZLOOQRWVDWLVI\WKHVLJQDWXUHUHquirement for Form 1023, Form 1023-EZ, or Form 8940. See the instructions to the applicable form
IRUPRUHLQIRUPDWLRQRQZKRPD\VLJQWKHDSSOLFDWLRQRQEHKDOIRIDQRUJDQL]DWLRQ
(2) Individual or representative authorized to sign Form 1024. In the case of a request for a
GHWHUPLQDWLRQOHWWHUPDGHE\¿OLQJ)RUPDQRI¿FHUDWUXVWHHZKRLVDXWKRUL]HGWRVLJQRU
DUHSUHVHQWDWLYHDXWKRUL]HGE\DSRZHURIDWWRUQH\see section 4.05 of this revenue procedure),
must sign the application.
(3) Individual or representative authorized to sign Form 1024-A. In the case of a request
IRU D GHWHUPLQDWLRQ OHWWHU PDGH E\ ¿OLQJ )RUP $ DQ RI¿FHU D GLUHFWRU D WUXVWHH ZKR LV
DXWKRUL]HGWRVLJQRUDUHSUHVHQWDWLYHDXWKRUL]HGE\DSRZHURIDWWRUQH\see section 4.05 of this
revenue procedure), must sign the application.
(4) Authorized representatives for all other requests. Except as provided in section 4.04(1),
and (2), and (3) to sign the request, or to appear before the Service in connection with the request,
the representative must be listed in Appendix B.

Power of attorney
and declaration of
representative

Bulletin No. 2020–1

.05 Power of attorney and declaration of representative. $Q\UHSUHVHQWDWLYHDXWKRUL]HGE\
a power of attorney, whether or not enrolled to practice, must comply with the conference and
practice requirements of the Statement of Procedural Rules (26 C.F.R. § 601.501–601.509) and

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Treasury Department Circular No. 230, which provide the rules for representing a taxpayer before
the Service.
Form 2848, Power of Attorney and Declaration of Representative, must be used to provide the
UHSUHVHQWDWLYH¶VDXWKRUL]DWLRQ3DUW,RI)RUP3RZHURI$WWRUQH\DQGWKHUHSUHVHQWDWLYH¶V
TXDOL¿FDWLRQ3DUW,,RI)RUP'HFODUDWLRQRI5HSUHVHQWDWLYH
The name of the individual signing Part I of Form 2848 should also be typed or printed on this
form. A stamped signature is not permitted.
An original, a copy, or a facsimile transmission (fax) of the power of attorney is acceptable so
long as its authenticity is not reasonably disputed.
Penalty of perjury
statement

.06
(1) Penalty of perjury statement requirements for requests for determination letters made
on Form 1023, 1023-EZ, 1024, 1024-A, or 8940. The signature of an individual described in section 4.04(1), (2), or (3) of this revenue procedure meets the penalty of perjury statement signature
requirements for requests on Form 1023, 1023-EZ, 1024, 1024-A, or 8940, as applicable.
(2) Penalty of perjury statement requirements for letter requests and responses to requests
for additional information. Any letter request or information submitted at a later time (regardless of the format of the original request), must be accompanied by the following declaration—
³8QGHUSHQDOWLHVRISHUMXU\,GHFODUHWKDW,KDYHH[DPLQHGWKLVUHTXHVWRUWKLVPRGL¿FDWLRQWR
the request, including accompanying documents, and, to the best of my knowledge and belief, the
UHTXHVWRUWKHPRGL¿FDWLRQFRQWDLQVDOOWKHUHOHYDQWIDFWVUHODWLQJWRWKHUHTXHVWDQGVXFKIDFWVDUH
true, correct, and complete.”
This declaration must be signed and dated by the taxpayer, not the taxpayer’s representative
DXWKRUL]HGE\DSRZHURIDWWRUQH\7KHVLJQDWXUHRIDQLQGLYLGXDOGHVFULEHGLQVHFWLRQLV
the signature of the taxpayer for purposes of the penalty of perjury statement. The signature of
DQDXWKRUL]HGUHSUHVHQWDWLYHGHVFULEHGLQVHFWLRQRUZLOOQRWPHHWWKHSHQDOW\RI
perjury statement requirements (except as otherwise provided in Appendix B). See the instructions to the relevant form for additional detail. Neither a stamped signature nor a faxed signature
is permitted. However, a faxed signature is permitted if requested by the Service in the case of
information submitted in response to a request by the Service for additional information after the
request for a determination.
7KHLQGLYLGXDOZKRVLJQVIRUDFRUSRUDWHWD[SD\HUPXVWEHDQRI¿FHURIWKHFRUSRUDWHWD[SD\HU
who has personal knowledge of the facts, and whose duties are not limited to obtaining a determination letter from the Service.
The individual signing for a trust, a state law partnership, or a limited liability company must
be, respectively, a trustee, general partner, or member-manager who has personal knowledge of
the facts.

Applicable user fee

January 2, 2020

.07 Section 7528 requires taxpayers to pay user fees for requests for determination letters. See
section 14 and Appendix A of this revenue procedure for more information.

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Where will copies of the
determination letter be
sent?

.08 The original of the determination letter will be sent to the taxpayer and a copy of the determination letter will be sent to up to two representatives listed on Form 2848 as appointed to
receive notices and communications.

Expedited processing

.09 Requests for determination letters are normally processed in the order of receipt by the
Service. However, expedited processing of a request for a determination letter may be approved
where a request for expedited processing is made in writing and contains a compelling reason for
processing the request for a determination letter ahead of others. Upon approval of a request for
expedited processing, a request for a determination letter will be considered ahead of the normal
order. This does not mean the request for a determination letter will be immediately approved or
denied.
(1) Procedures for requesting expedited handling. The request for expedited handling must
EHPDGHLQZULWLQJSUHIHUDEO\LQDVHSDUDWHOHWWHUVHQWZLWKRUVRRQDIWHU¿OLQJWKHUHTXHVWIRU
the determination letter. If the request is not made in a separate letter, then the letter in which the
GHWHUPLQDWLRQOHWWHUUHTXHVWLVPDGHVKRXOGVD\DWWKHWRSRIWKH¿UVWSDJH³Expedited Handling
Is Requested. See page ___ of this letter.”
A request for expedited handling will not be forwarded to the appropriate group for action
unless the application has been accepted for processing. See section 6.06(1) (requirements for a
complete application).
Whether the request will be granted is within the Service's discretion. Circumstances generally
ZDUUDQWLQJH[SHGLWHGSURFHVVLQJLQFOXGH
(a) a grant to the applicant is pending and the failure to secure the grant may have an adverse
LPSDFWRQWKHRUJDQL]DWLRQ¶VDELOLW\WRFRQWLQXHWRRSHUDWH
EWKHSXUSRVHRIWKHQHZO\FUHDWHGRUJDQL]DWLRQLVWRSURYLGHGLVDVWHUUHOLHIWRYLFWLPVRIHPHUJHQFLHVVXFKDVÀRRGDQGKXUULFDQHDQG
(c) there have been undue delays in issuing a determination letter caused by a Service error.
Because most requests for determination letters cannot be processed ahead of their regular order, the Service urges all taxpayers to submit their requests well in advance of the contemplated
transaction. In addition, in order to facilitate prompt action on determination letter requests, taxpayers are encouraged to ensure that their initial submissions comply with all of the requirements
of this revenue procedure, and to promptly provide any additional information requested by the
Service.
(2) Applications on Form 1023-EZ are ineligible for expedited handling. $QRUJDQL]DWLRQ
may not request expedited handling of a Form 1023-EZ.

Non-acceptance for
processing

.10 The Service will not accept for processing any request that is substantially incomplete.
(1) Requests other than Form 1023-EZ. An application other than Form 1023-EZ that is missing any item of information listed in section 6.06(1) will be considered substantially incomplete
and will not be accepted for processing. A request other than an application may be considered
substantially incomplete if it does not contain the information, documentation, and other materials

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required by sections 4, 5, or 7 of this revenue procedure, or Form 8940 and its instructions, as
applicable to the particular request.
(2) Requests on Form 1023-EZ. (a) Incomplete Form 1023-EZ. A submitted Form 1023EZ that is not a completed Form 1023-EZ within the meaning of section 6.06(2) of this revenue
procedure will not be accepted for processing by the Service. The Service may, but is not required
to, request additional information to validate information presented or to clarify an inconsistency
on a Form 1023-EZ.
(b) Form 1023-EZ and pending application. The Service will not accept for processing a
)RUP(=IURPDQRUJDQL]DWLRQWKDWKDVDQDSSOLFDWLRQIRUUHFRJQLWLRQRIWD[H[HPSWVWDWXV
pending with the Service.
(3) Effect of non-acceptance. $QRUJDQL]DWLRQZLOOEHQRWL¿HGLILWVUHTXHVWLVQRWDFFHSWHG
for processing and any user fee that was paid with the request will be returned or refunded. See
VHFWLRQ$QRUJDQL]DWLRQPD\WKHQVXEPLWDQHZUHTXHVWLQFOXGLQJWKHPLVVLQJLQIRUPDWLRQ
with a new user fee.
How to check on status of
request

.7KHWD[SD\HURUWKHWD[SD\HU¶VDXWKRUL]HGUHSUHVHQWDWLYHVKRXOGUHIHUWRLUVJRY³:KHUH
V
0\([HPSWLRQ$SSOLFDWLRQ"´IRUJXLGHOLQHVRQZKHQWRH[SHFWWRKHDUIURPWKH6HUYLFHDQGPD\
obtain information regarding the status of a request by calling the toll-free Customer Account
Services number, 877-829-5500.

SECTION 5. WHAT
ARE THE SPECIFIC
PROCEDURES FOR
REQUESTING A
DETERMINATION
LETTER BY LETTER?
In general

.7KLVVHFWLRQH[SODLQVWKHVSHFL¿FSURFHGXUHVIRUUHTXHVWLQJDGHWHUPLQDWLRQOHWWHUE\OHWWHU
Any determination letter request which is not required to be submitted on a form may be submitWHGE\OHWWHU)RUH[DPSOHDQRUJDQL]DWLRQVHHNLQJWREHGHVFULEHGLQ†GZRXOGVXEPLWD
letter application in accordance with this section 5, other applicable sections of this revenue procedure, and Rev. Proc. 72-5, 1972-1 C.B. 709.
2WKHUVSHFL¿FSURFHGXUHVPD\DSSO\GHSHQGLQJRQWKHW\SHRIUHTXHVWSee section 6 of this
revenue procedure for applications for recognition of exempt status under § 501 or § 521.

Certain information
required

.02

Statement of facts

(1) Complete statement of facts and other information. Each request for a determination
letter must contain a complete statement of all facts relating to the request. These facts include
WKHRUJDQL]DWLRQ¶VQDPHDGGUHVVWHOHSKRQHQXPEHUDQG(PSOR\HU,GHQWL¿FDWLRQ1XPEHU(,1

Documents

(2) Copies of all organizing documents, bylaws, contracts, wills, deeds, agreements, instruments, and other documents. All documents that are pertinent to the request (including
RUJDQL]LQJGRFXPHQWVE\ODZVFRQWUDFWVZLOOVGHHGVDJUHHPHQWVLQVWUXPHQWVWUXVWGRFXPHQWV
and proposed disclaimers) must be submitted with the request.

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2ULJLQDOGRFXPHQWVVKRXOGQRWEHVXEPLWWHGEHFDXVHWKH\EHFRPHSDUWRIWKH6HUYLFH¶V¿OHDQG
will not be returned to the taxpayer. Instead, true copies of all such documents should be submitted with the request. Each document, other than the request, should be labeled alphabetically and
attached to the request in alphabetical order.
Analysis of material facts

(3) Analysis of material facts. All material facts in documents must be included, rather than
merely incorporated by reference, in the taxpayer's initial request or in supplemental letters. These
facts must be accompanied by an analysis of their bearing on the request, specifying the provisions
that apply.

Same or similar issue
previously submitted or
currently pending

(4) Statement regarding whether same or similar issue was previously ruled on or requested, or is currently pending. The request must also state whether, to the best of the knowledge of
both the taxpayer and the taxpayer's representatives—
DWKH6HUYLFHRUWKH2I¿FHRI$VVRFLDWH&KLHI&RXQVHOSUHYLRXVO\UXOHGRQWKHVDPHRUVLPLODU
LVVXHIRUWKHWD[SD\HURUDUHODWHGWD[SD\HUZLWKLQWKHPHDQLQJRI†RUDPHPEHURIDQDI¿OLated group of which the taxpayer is also a member within the meaning of § 1504) or a predecessor;
(b) the taxpayer, a related taxpayer, a predecessor, or any representatives previously submitted
WKHVDPHRUVLPLODULVVXHWRWKH6HUYLFHRUWKH2I¿FHRI$VVRFLDWH&KLHI&RXQVHOEXWZLWKGUHZWKH
request before a letter ruling or determination letter was issued;
(c) the taxpayer, a related taxpayer, or a predecessor previously submitted a request involving
WKHVDPHRUDVLPLODULVVXHWKDWLVFXUUHQWO\SHQGLQJZLWKWKH6HUYLFHRUWKH2I¿FHRI$VVRFLDWH
Chief Counsel; or
(d) at the same time as this request, the taxpayer or a related taxpayer is presently submitting
DQRWKHUUHTXHVWLQYROYLQJWKHVDPHRUDVLPLODULVVXHWRWKH6HUYLFHRUWKH2I¿FHRI$VVRFLDWH
Chief Counsel.
,IWKHVWDWHPHQWLVDI¿UPDWLYHIRUDEFRUGRIVHFWLRQWKHVWDWHPHQWPXVWJLYH
the date the request was submitted, the date the request was withdrawn or ruled on, if applicable,
DQGRWKHUGHWDLOVRIWKH6HUYLFH
VRU2I¿FHRI$VVRFLDWH&KLHI&RXQVHO¶VFRQVLGHUDWLRQRIWKHLVVXH

Statement of authorities

(5) The request must include a statement of whether the law in connection with the request is
uncertain and whether the issue is adequately addressed by relevant authorities.
(a) Statement of supporting authorities. If the taxpayer advocates a particular conclusion,
an explanation of the grounds for that conclusion and the relevant authorities to support it must
also be included. Even if not advocating a particular tax treatment of a proposed transaction, the
taxpayer must still furnish views on the tax results of the proposed transaction and a statement of
relevant authorities to support those views.
(b) Statement of contrary authorities. The taxpayer is also encouraged to inform the Service about, and discuss the implications of, any authority believed to be contrary to the position
advanced, such as legislation (or pending legislation), tax treaties, court decisions, regulations,
revenue rulings, revenue procedures, notices or announcements. If the taxpayer determines that
there are no contrary authorities, a statement in the request to this effect would be helpful. If the
taxpayer does not furnish either contrary authorities or a statement that none exists, the Service
LQFRPSOH[FDVHVRUWKRVHSUHVHQWLQJGLI¿FXOWRUQRYHOLVVXHVPD\UHTXHVWVXEPLVVLRQRIFRQWUDU\

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authorities or a statement that none exists. Failure to comply with this request may result in the
Service's refusal to issue a determination letter.
Identifying and discussing contrary authorities will generally enable Service personnel to understand the issue and relevant authorities more quickly. When Service personnel receive the request, they will have before them the taxpayer's thinking on the effect and applicability of contrary
authorities. This information should make research easier and lead to earlier action by the Service.
,IWKHWD[SD\HUGRHVQRWGLVFORVHDQGGLVWLQJXLVKVLJQL¿FDQWFRQWUDU\DXWKRULWLHVWKH6HUYLFHPD\
need to request additional information, which will delay action on the request.
SECTION 6. WHAT
ARE THE SPECIFIC
PROCEDURES FOR
APPLICATIONS FOR
RECOGNITION OF
EXEMPT STATUS
UNDER § 501 OR § 521?
In general

.01 This section sets forth procedures for applying for and issuing determination letters in response to applications for recognition of exempt status under § 501 or § 521 other than those subMHFWWR5HY3URFWKLV%XOOHWLQUHODWLQJWRSHQVLRQSUR¿WVKDULQJVWRFNERQXVDQQXLW\
and employee stock ownership plans).

Terrorist organizations
not eligible to apply for
recognition of exemption

.$QRUJDQL]DWLRQWKDWLVLGHQWL¿HGRUGHVLJQDWHGDVDWHUURULVWRUJDQL]DWLRQZLWKLQWKHPHDQing of § 501(p)(2) is not eligible to apply for recognition of exemption.

Format of application

.$QRUJDQL]DWLRQVHHNLQJUHFRJQLWLRQRIH[HPSWVWDWXVXQGHU†RU†LVUHTXLUHGWR
submit the appropriate completed application form or the appropriate completed letter request. In
the case of a numbered application form, the current version of the form must be submitted. The
current version of the form can be found on irs.gov (“Forms & Instructions”).

Form 8718

.$QRUJDQL]DWLRQDSSO\LQJIRUUHFRJQLWLRQRIH[HPSWVWDWXVPXVWDWWDFKDFRPSOHWHG)RUP
8718, User Fee for Exempt Organization Determination Letter Request, to its application, unless
WKHRUJDQL]DWLRQLVVXEPLWWLQJ)RUPRU)RUP(=)RUPLVDQDWWDFKPHQWUHODWHG
to user fees that is not, itself, a determination letter application.

Form 1023-EZ applications

.05 (1) Eligibility for Form 1023-EZ application. $QRUJDQL]DWLRQWKDWLVDQHOLJLEOHRUJDQL]DWLRQPD\XVH)RUP(=WRDSSO\IRUUHFRJQLWLRQRIH[HPSWLRQXQGHU†FXQOHVVWKH
RUJDQL]DWLRQLVGHVLJQDWHGLQVHFWLRQDVDQRUJDQL]DWLRQWKDWLVLQHOLJLEOHWRVXEPLW)RUP
(=$QRUJDQL]DWLRQLVDQHOLJLEOHRUJDQL]DWLRQLIWKHRUJDQL]DWLRQPHHWVDOORIWKHIROORZLQJ
FULWHULD
D7KHRUJDQL]DWLRQKDVSURMHFWHGDQQXDOJURVVUHFHLSWVRIRUOHVVLQWKHFXUUHQWWD[DEOH
year and the next 2 years;
E7KHRUJDQL]DWLRQKDGDQQXDOJURVVUHFHLSWVRIRUOHVVLQHDFKRIWKHSDVW\HDUVIRU
ZKLFKWKHRUJDQL]DWLRQZDVLQH[LVWHQFHDQG
F7KHRUJDQL]DWLRQKDVWRWDODVVHWVWKHIDLUPDUNHWYDOXHRIZKLFKGRHVQRWH[FHHG
For purposes of this eligibility requirement, a good faith estimate of the fair market value of the
RUJDQL]DWLRQ¶VDVVHWVLVVXI¿FLHQW

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(2) Ineligibility for Form 1023-EZ application. 7KHIROORZLQJRUJDQL]DWLRQVDUHQRWHOLJLEOH
to submit Form 1023-EZ and must use Form 1023 to apply for recognition of exemption under §
F
D 2UJDQL]DWLRQV IRUPHG XQGHU WKH ODZV RI D IRUHLJQ FRXQWU\ 8QLWHG 6WDWHV WHUULWRULHV DQG
possessions are not considered foreign countries);
E2UJDQL]DWLRQVWKDWGRQRWKDYHDPDLOLQJDGGUHVVLQWKH8QLWHG6WDWHVWHUULWRULHVDQGSRVVHVsions are considered the United States for this purpose);
F2UJDQL]DWLRQVWKDWDUHVXFFHVVRUVWRRUFRQWUROOHGE\DQHQWLW\VXVSHQGHGXQGHU†S
VXVSHQVLRQRIWD[H[HPSWVWDWXVRIWHUURULVWRUJDQL]DWLRQV
G 2UJDQL]DWLRQV WKDW DUH QRW FRUSRUDWLRQV XQLQFRUSRUDWHG DVVRFLDWLRQV RU WUXVWV VXFK DV D
limited liability corporation (LLC);
H2UJDQL]DWLRQVWKDWDUHIRUPHGDVIRUSUR¿WHQWLWLHVRUDUHVXFFHVVRUVWRIRUSUR¿WHQWLWLHV
I2UJDQL]DWLRQVWKDWZHUHSUHYLRXVO\UHYRNHGRUWKDWDUHVXFFHVVRUVWRDSUHYLRXVO\UHYRNHG
RUJDQL]DWLRQRWKHUWKDQDQRUJDQL]DWLRQWKHWD[H[HPSWVWDWXVRIZKLFKZDVDXWRPDWLFDOO\UHYRNHG
IRUIDLOXUHWR¿OHD)RUPVHULHVUHWXUQRUQRWLFHIRUWKUHHFRQVHFXWLYH\HDUVXQGHU†M
(g) Churches or conventions or associations of churches described in § 170(b)(1)(A)(i);
(h) Schools, colleges, or universities described in § 170(b)(1)(A)(ii);
L+RVSLWDOVRUPHGLFDOUHVHDUFKRUJDQL]DWLRQVGHVFULEHGLQ†E$LLLRU†U
$LFRRSHUDWLYHKRVSLWDOVHUYLFHRUJDQL]DWLRQVGHVFULEHGLQ†H
M &RRSHUDWLYH VHUYLFH RUJDQL]DWLRQV RI RSHUDWLQJ HGXFDWLRQDO RUJDQL]DWLRQV GHVFULEHG LQ †
501(f);
N4XDOL¿HGFKDULWDEOHULVNSRROVGHVFULEHGLQ†Q
O6XSSRUWLQJRUJDQL]DWLRQVGHVFULEHGLQ†D
P2UJDQL]DWLRQVWKDWKDYHDVDVXEVWDQWLDOSXUSRVHSURYLGLQJDVVLVWDQFHWRLQGLYLGXDOVWKURXJK
FUHGLWFRXQVHOLQJDFWLYLWLHVVXFKDVEXGJHWLQJSHUVRQDO¿QDQFH¿QDQFLDOOLWHUDF\PRUWJDJHIRUHclosure assistance, or other consumer credit areas;
Q2UJDQL]DWLRQVWKDWLQYHVWRULQWHQGWRLQYHVW¿YHSHUFHQWRUPRUHRIWKHLUWRWDODVVHWVLQ
securities or funds that are not publicly traded;
R2UJDQL]DWLRQVWKDWSDUWLFLSDWHRULQWHQGWRSDUWLFLSDWHLQSDUWQHUVKLSVLQFOXGLQJHQWLWLHV
RUDUUDQJHPHQWVWUHDWHGDVSDUWQHUVKLSVIRU)HGHUDOWD[SXUSRVHVLQZKLFKWKH\VKDUHSUR¿WVDQG
ORVVHVZLWKSDUWQHUVRWKHUWKDQ†FRUJDQL]DWLRQV

Bulletin No. 2020–1

257

January 2, 2020

S2UJDQL]DWLRQVWKDWVHOORULQWHQGWRVHOOFDUERQFUHGLWVRUFDUERQRIIVHWV
T+HDOWK0DLQWHQDQFH2UJDQL]DWLRQV+02V
U$FFRXQWDEOH&DUH2UJDQL]DWLRQV$&2VRURUJDQL]DWLRQVWKDWHQJDJHLQRULQWHQGWRHQgage in, ACO activities (such as participation in the Medicare Shared Savings Program (MSSP) or
in activities unrelated to the MSSP described in Notice 2011-20, 2011-16 I.R.B. 652);
V2UJDQL]DWLRQVWKDWPDLQWDLQRULQWHQGWRPDLQWDLQRQHRUPRUHGRQRUDGYLVHGIXQGV
W2UJDQL]DWLRQVWKDWDUHRUJDQL]HGDQGRSHUDWHGH[FOXVLYHO\IRUWHVWLQJIRUSXEOLFVDIHW\DQG
WKDWDUHUHTXHVWLQJDIRXQGDWLRQFODVVL¿FDWLRQXQGHU†D
(u) Private operating foundations;
Y2UJDQL]DWLRQVWKDWDUHDSSO\LQJIRUUHWURDFWLYHUHLQVWDWHPHQWRIH[HPSWLRQXQGHUVHFWLRQV
5 or 6 of Rev. Proc. 2014-11, 2014-3 I.R.B. 411, after being automatically revoked (see section
6.05(3) of this revenue procedure for additional information);
Z2UJDQL]DWLRQVDSSO\LQJIRUUHWURDFWLYHUHLQVWDWHPHQWXQGHUVHFWLRQRI5HY3URF
,5%DIWHUEHLQJDXWRPDWLFDOO\UHYRNHGWKDWDUHVHHNLQJDIRXQGDWLRQFODVVL¿FDWLRQ
WKDWLVGLIIHUHQWIURPWKHFODVVL¿FDWLRQWKH\KDGDWWKHWLPHRIUHYRFDWLRQ
[$JULFXOWXUDOUHVHDUFKRUJDQL]DWLRQVGHVFULEHGLQ†E$L[DQG
\2UJDQL]DWLRQVWKDWDUHFXUUHQWO\RUZHUHSUHYLRXVO\H[HPSWXQGHUDQRWKHUVXEVHFWLRQRI†
501(c).
Further information regarding these eligibility requirements may be provided in the Instructions for Form 1023-EZ.
Form 1023 and Form
1023-EZ applications
for reinstatement after
automatic revocation

January 2, 2020

(3) Form 1023 and Form 1023-EZ applications for reinstatement after automatic revocation. 2UJDQL]DWLRQVWKDWFODLPH[HPSWVWDWXVXQGHU†FJHQHUDOO\PXVW¿OHDQQXDO)RUP
VHULHVUHWXUQVRUQRWLFHVHYHQLIWKH\KDYHQRW\HWUHFHLYHGWKHLUGHWHUPLQDWLRQOHWWHUUHFRJQL]LQJ
H[HPSWLRQ,IDQRUJDQL]DWLRQIDLOVWR¿OHUHTXLUHG)RUPVHULHVUHWXUQVRUQRWLFHVIRUWKUHH
consecutive years, its exemption will be automatically revoked by operation of § 6033(j). Such an
RUJDQL]DWLRQPD\DSSO\IRUUHLQVWDWHPHQWRILWVH[HPSWVWDWXVDQGVXFKUHFRJQLWLRQPD\EHJUDQWed retroactively, as provided in Rev. Proc. 2014-11. Consistent with the eligibility requirements
for using Form 1023-EZ that are set forth in section 6.05(1)-(2) of this revenue procedure, only
DQRUJDQL]DWLRQUHTXHVWLQJUHLQVWDWHPHQWRI†FVWDWXVXQGHUVHFWLRQVWUHDPOLQHGUHWURDFWLYHUHLQVWDWHPHQWRIWD[H[HPSWVWDWXVIRUVPDOORUJDQL]DWLRQVZLWKLQPRQWKVRIUHYRFDWLRQ
or section 7 (reinstatement of tax-exempt status from postmark date) of Rev. Proc. 2014-11 may
DSSO\XVLQJ)RUP(=RWKHUWKDQDQRUJDQL]DWLRQDOVRVHHNLQJDIRXQGDWLRQVWDWXVFKDQJHDV
H[SODLQHGLQVHFWLRQZ$QRUJDQL]DWLRQUHTXHVWLQJUHLQVWDWHPHQWRI†FVWDWXV
under section 5 (retroactive reinstatement of tax-exempt status within 15 months of revocation) or
section 6 (retroactive reinstatement more than 15 months after revocation) of Rev. Proc. 2014-11
must apply using Form 1023.

258

Bulletin No. 2020–1

What are the requirements
for a completed
application?
Requirements for a
completed application
other than a Form 1023-EZ
application

.06

(1) A completed application (other than a Form 1023-EZ), including a letter application, is one
WKDW
DLVVLJQHGE\DQDXWKRUL]HGLQGLYLGXDOXQGHUSHQDOWLHVRISHUMXU\see sections 4.04 and 4.06
of this revenue procedure);
ELQFOXGHVWKHRUJDQL]DWLRQ¶VFRUUHFW(,1
FLIRURUJDQL]DWLRQVRWKHUWKDQWKRVHGHVFULEHGLQ†FLQFOXGHVDVWDWHPHQWRIUHceipts and expenditures and a balance sheet for the current year and the three preceding years (or
WKH\HDUVWKHRUJDQL]DWLRQZDVLQH[LVWHQFHLIOHVVWKDQIRXU\HDUVDQGLIWKHRUJDQL]DWLRQKDVQRW
yet commenced operations or has not completed one accounting period, a proposed budget for two
full accounting periods and a current statement of assets and liabilities;
LLIRURUJDQL]DWLRQVGHVFULEHGLQ†Fsee Form 1023 and Instructions for Form 1023;
(d) includes a detailed narrative statement of proposed activities, including each of the fundUDLVLQJDFWLYLWLHVRID†FRUJDQL]DWLRQDQGDQDUUDWLYHGHVFULSWLRQRIDQWLFLSDWHGUHFHLSWV
and contemplated expenditures;
HLQFOXGHVDFRS\RIWKHRUJDQL]LQJRUHQDEOLQJGRFXPHQWWKDWLVVLJQHGE\DSULQFLSDORI¿FHU
or two members in the case of an unincorporated association, or is accompanied by a written decODUDWLRQVLJQHGE\DQDXWKRUL]HGLQGLYLGXDOFHUWLI\LQJWKDWWKHGRFXPHQWLVDFRPSOHWHDQGDFFXUDWH
copy of the original or otherwise meets the requirements of a “conformed copy” as outlined in
Rev. Proc. 68-14, 1968-1 C.B. 768;
ILIWKHRUJDQL]LQJRUHQDEOLQJGRFXPHQWLVLQWKHIRUPRIDUWLFOHVRILQFRUSRUDWLRQLQFOXGHV
HYLGHQFHWKDWLWZDV¿OHGZLWKDQGDSSURYHGE\DQDSSURSULDWHVWDWHRI¿FLDOHJVWDPSHG³)LOHG´
and dated by the Secretary of State); alternatively, a copy of the articles of incorporation may be
VXEPLWWHG LI DFFRPSDQLHG E\ D ZULWWHQ GHFODUDWLRQ VLJQHG E\ DQ DXWKRUL]HG LQGLYLGXDO WKDW WKH
FRS\LVDFRPSOHWHDQGDFFXUDWHFRS\RIWKHRULJLQDOFRS\WKDWZDV¿OHGZLWKDQGDSSURYHGE\WKH
VWDWHLIDFRS\LVVXEPLWWHGWKHZULWWHQGHFODUDWLRQPXVWLQFOXGHWKHGDWHWKHDUWLFOHVZHUH¿OHG
with the state;
JLIWKHRUJDQL]DWLRQKDVDGRSWHGE\ODZVRUVLPLODUJRYHUQLQJUXOHVLQFOXGHVDFXUUHQWFRS\
the bylaws need not be signed if submitted as an attachment to the application for recognition of
H[HPSWLRQ RWKHUZLVH WKH E\ODZV PXVW EH YHUL¿HG DV FXUUHQW E\ DQ DXWKRUL]HG LQGLYLGXDO see
section 4.04 of this revenue procedure);
(h) is accompanied by the correct user fee (and Form 8718, when applicable).

Requirements for a
completed Form 1023-EZ
application

($)RUP(=VXEPLWWHGRQOLQHDWZZZSD\JRYE\DQHOLJLEOHRUJDQL]DWLRQLVFRPSOHWH
LILW
(a) includes responses for each required line item of the form, including an accurate date of
RUJDQL]DWLRQDQGDQDWWHVWDWLRQWKDWWKHRUJDQL]DWLRQKDVFRPSOHWHGWKH)RUP(=HOLJLELOLW\

Bulletin No. 2020–1

259

January 2, 2020

worksheet, as in effect on the date of submission, is eligible to apply for exemption using Form
1023-EZ, and has read the Instructions for Form 1023-EZ and understands the requirements to be
exempt under § 501(c)(3) as expressed therein;
ELQFOXGHVWKHRUJDQL]DWLRQ¶VFRUUHFW(,1
FLVHOHFWURQLFDOO\VLJQHGXQGHUSHQDOWLHVRISHUMXU\E\DQLQGLYLGXDODXWKRUL]HGWRVLJQIRU
WKHRUJDQL]DWLRQDVVSHFL¿HGLQVHFWLRQVDQGRIWKLVUHYHQXHSURFHGXUHDQGWKH,QVWUXFtions for Form 1023-EZ); and
(d) is accompanied by the correct user fee.
$)RUP(=ZLOOQRWEHFRQVLGHUHGFRPSOHWHLIWKHRUJDQL]DWLRQ¶VQDPHDQG(,1GRQRW
match the records in the Service’s Business Master File. Furthermore, a Form 1023-EZ submitted
E\DQRUJDQL]DWLRQWKDWLVQRWDQHOLJLEOHRUJDQL]DWLRQZLWKLQWKHPHDQLQJRIVHFWLRQRIWKLV
revenue procedure will not be considered complete.
What are the standards
for issuing a determination
letter on exempt status?

.07

Exempt status must be
established in application,
including attestation and
supporting documents

($IDYRUDEOHGHWHUPLQDWLRQOHWWHUZLOOEHLVVXHGWRDQRUJDQL]DWLRQLILWVFRPSOHWHGDSSOLcation, including attestations and supporting documents, along with any additional information
UHTXHVWHGE\WKH6HUYLFHDQGSURYLGHGE\WKHRUJDQL]DWLRQHVWDEOLVKHVWKDWLWPHHWVWKHSDUWLFXODU
requirements of the section under which exemption from Federal income tax is claimed.

Exempt status may be
recognized in advance of
actual operations

(D)RUDOODSSOLFDWLRQVRWKHUWKDQD)RUP(=H[HPSWVWDWXVPD\EHUHFRJQL]HGLQ
DGYDQFHRIWKHRUJDQL]DWLRQ¶VRSHUDWLRQVLIWKHSURSRVHGDFWLYLWLHVDUHGHVFULEHGLQVXI¿FLHQWGHWDLO
WRSHUPLWDFRQFOXVLRQWKDWWKHRUJDQL]DWLRQZLOOFOHDUO\PHHWWKHSDUWLFXODUUHTXLUHPHQWVIRUH[emption pursuant to the section of the Code under which exemption is claimed.
(i) A mere restatement of exempt purposes or a statement that proposed activities will be in
furtherance of such purposes will not satisfy this requirement.
LL7KHRUJDQL]DWLRQPXVWIXOO\GHVFULEHDOORIWKHDFWLYLWLHVLQZKLFKLWH[SHFWVWRHQJDJHLQcluding the standards, criteria, procedures, or other means adopted or planned for carrying out the
activities, the anticipated sources of receipts, and the nature of contemplated expenditures.
LLL:KHUHWKHRUJDQL]DWLRQFDQQRWGHPRQVWUDWHWRWKHVDWLVIDFWLRQRIWKH6HUYLFHWKDWLWTXDOL¿HVIRUH[HPSWLRQSXUVXDQWWRWKHVHFWLRQRIWKH&RGHXQGHUZKLFKH[HPSWLRQLVFODLPHGWKH
Service will generally issue a proposed adverse determination letter. See section 9 of this revenue
procedure.
E)RU)RUP(=DSSOLFDWLRQVH[HPSWVWDWXVPD\EHUHFRJQL]HGLQDGYDQFHRIWKHRUJDQL]DWLRQ¶VRSHUDWLRQVLIWKHDWWHVWDWLRQVFRQWDLQHGLQWKHRUJDQL]DWLRQ¶VFRPSOHWHG)RUP(=
DORQJZLWKDQ\DGGLWLRQDOLQIRUPDWLRQUHTXHVWHGE\WKH6HUYLFHDQGSURYLGHGE\WKHRUJDQL]DWLRQ
establish that it meets the requirements for exemption under § 501(c)(3).

Even if application is
complete, additional
information may be
required

January 2, 2020

(3) Even though an application is complete, the Service may request additional information
before issuing a determination letter. The failure to respond to a request for additional information

260

Bulletin No. 2020–1

may result in the closure of the application without a determination letter being issued and without
a refund of the user fee. If the failure to respond to a request for additional information results
LQWKH6HUYLFHLVVXLQJDSURSRVHGDGYHUVHGHWHUPLQDWLRQOHWWHUWRWKHRUJDQL]DWLRQWKHSURSRVHG
DGYHUVHGHWHUPLQDWLRQOHWWHUZLOOLQIRUPWKHRUJDQL]DWLRQRILWVRSSRUWXQLW\WRSURWHVWDSSHDOWKH
decision and request a conference. See section 9 for the applicable appeal/protest procedures.
(a) In the case of an application under § 501(c)(3), the period of time beginning on the date the
Service requests additional information until the date the information is submitted to the Service
will not be counted for purposes of the 270-day period referred to in § 7428(b)(2).
(b) The Service will select a statistically valid random sample of Form 1023-EZ applications for
pre-determination reviews, which will result in requests for additional information.
Effective date of exemption

.08
(1) In general. $GHWHUPLQDWLRQOHWWHUUHFRJQL]LQJH[HPSWLRQRIDQRUJDQL]DWLRQGHVFULEHGLQ
†FRWKHUWKDQ†FLVHIIHFWLYHDVRIWKHGDWHRIIRUPDWLRQRIDQRUJDQL]DWLRQLI
its purposes and activities prior to the date of the determination letter have been consistent with
WKHUHTXLUHPHQWVIRUH[HPSWLRQDQGLWKDV¿OHGDQDSSOLFDWLRQIRUUHFRJQLWLRQRIH[HPSWLRQ
ZLWKLQPRQWKVIURPWKHHQGRIWKHPRQWKLQZKLFKLWZDVRUJDQL]HG
(2) Special cases. 6SHFLDOUXOHVPD\DSSO\WRDQRUJDQL]DWLRQDSSO\LQJIRUH[HPSWLRQXQGHU
§ 501(c)(3), (9), or (17). See §§ 505 and 508, and Treas. Reg. §§ 1.508-1(a)(2), 1.508-1(b)(7),
DQGDLLLDQGLYDQG$QRUJDQL]DWLRQDSSO\LQJIRUUHFRJQLWLRQRI
tax-exempt status after 27 months from formation under §501(c)(3) may not use Form 1023-EZ
LILWUHTXHVWVDQHIIHFWLYHGDWHHDUOLHUWKDQWKHVXEPLVVLRQGDWHEXWLQVWHDGPXVW¿OHD)RUP
,QDGGLWLRQVSHFLDOUXOHVDSSO\ZLWKUHVSHFWWRRUJDQL]DWLRQVGHVFULEHGLQ†FSee Rev.
Proc. 2015-17, 2015-7 I.R.B. 599.
(3) When the Service requires the organization to make amendments.
D,IWKH6HUYLFHUHTXLUHVWKHRUJDQL]DWLRQWRDOWHULWVDFWLYLWLHVRUPDNHVXEVWDQWLYHDPHQGPHQWVWRLWVHQDEOLQJLQVWUXPHQWWKHH[HPSWLRQZLOOEHHIIHFWLYHDVRIWKHGDWHVSHFL¿HGLQWKH
determination letter.
E,IWKH6HUYLFHUHTXLUHVWKHRUJDQL]DWLRQWRPDNHDQRQVXEVWDQWLYHDPHQGPHQWH[HPSWLRQ
ZLOORUGLQDULO\EHUHFRJQL]HGDVRIWKHGDWHRIIRUPDWLRQLILWPHHWVWKHUHTXLUHPHQWVLQVHFWLRQ
6.08(1) of this revenue procedure. Examples of nonsubstantive amendments include correction of
a clerical error in the enabling instrument or the addition of a dissolution clause where the activLWLHVRIWKHRUJDQL]DWLRQSULRUWRWKHGHWHUPLQDWLRQOHWWHUDUHFRQVLVWHQWZLWKWKHUHTXLUHPHQWVIRU
exemption.

SECTION 7. WHAT
ARE THE SPECIFIC
PROCEDURES FOR
DETERMINATION
LETTER REQUESTS ON
FORM 8940?

Bulletin No. 2020–1

(4) When an application is not submitted within 27 months of formation.$QRUJDQL]DWLRQ
that otherwise meets the requirements for tax-exempt status and the issuance of a determination
letter that does not meet the requirements for recognition from date of formation will be recogQL]HGIURPWKHSRVWPDUNGDWHRILWVDSSOLFDWLRQRUWKHVXEPLVVLRQGDWHRILWV)RUP(=DV
applicable.

261

January 2, 2020

In general

.7KLVVHFWLRQH[SODLQVWKHVSHFL¿FSURFHGXUHVIRUUHTXHVWLQJDGHWHUPLQDWLRQOHWWHUE\VXEmitting Form 8940, including requests for a determination letter on foundation status.

Requests made on Form
8940

.02 A request described in section 4.02(5) must be submitted on Form 8940 (except where otherwise permitted, including when such request is made as part of an application for recognition of
exempt status), along with all information, documentation, and other materials required by Form
8940 and the instructions thereto, as well as the appropriate user fee provided in Appendix A. For
FRPSOHWHLQIRUPDWLRQDERXW¿OLQJUHTXLUHPHQWVDQGWKHVXEPLVVLRQSURFHVVUHIHUWR)RUP
and the Instructions for Form 8940.

,QLWLDOFODVVL¿FDWLRQRI
private foundation status

.$OO†FRUJDQL]DWLRQVDUHFODVVL¿HGDVSULYDWHIRXQGDWLRQVXQGHU†DXQOHVV
they qualify as a public charity under § 509(a)(1) (which cross-references § 170(b)(1)(A)(i)-(vi),
and (ix)), (2), (3), or (4). See Treas. Reg. §§ 1.170A-9, 1.509(a)-1 through 1.509(a)-7. The Service
GHWHUPLQHV DQ RUJDQL]DWLRQ¶V SULYDWH IRXQGDWLRQ RU SXEOLF FKDULW\ VWDWXV ZKHQ WKH RUJDQL]DWLRQ
¿OHVLWV)RUPRUZKHQHOLJLEOH)RUP(=7KLVVWDWXVZLOOEHLQFOXGHGLQWKHRUJDQL]Dtion’s determination letter on exempt status.

Under what circumstances
must an organization
request a determination
of foundation status, and
when is such a request
optional?

.04 (1) 5HTXHVWVWRFKDQJHIURPRQHSXEOLFFKDULW\FODVVL¿FDWLRQWRDQRWKHUSXEOLFFKDULW\
FODVVL¿FDWLRQ On its Form 990, Return of Organization Exempt From Income Tax Under section
FRUDRIWKH,QWHUQDO5HYHQXH&RGHH[FHSWSULYDWHIRXQGDWLRQV, a public
charity indicates the paragraph of § 509(a), and subparagraph of § 170(b)(1)(A), if applicable,
XQGHUZKLFKLWTXDOL¿HVDVDSXEOLFFKDULW\%HFDXVHRIFKDQJHVLQLWVDFWLYLWLHVRURSHUDWLRQVWKLV
may differ from the public charity status listed in its original determination letter. Although an
RUJDQL]DWLRQLVQRWUHTXLUHGWRREWDLQDGHWHUPLQDWLRQOHWWHUWRTXDOLI\IRUWKHQHZSXEOLFFKDULW\
VWDWXVLQRUGHUIRU6HUYLFHUHFRUGVWRUHFRJQL]HDQ\FKDQJHLQSXEOLFFKDULW\VWDWXVDQRUJDQL]DWLRQPXVWREWDLQDQHZGHWHUPLQDWLRQRIIRXQGDWLRQVWDWXVE\¿OLQJ)RUPSXUVXDQWWRWKLV
revenue procedure.
(2) Requests from public charities for private foundation status. If a public charity no lonJHUTXDOL¿HVDVDSXEOLFFKDULW\XQGHU†DWKHQLWEHFRPHVDSULYDWHIRXQGDWLRQDQGDV
VXFKLWPXVW¿OH)RUP3)5HWXUQRI3ULYDWH)RXQGDWLRQRU6HFWLRQD7UXVW7UHDWHG
as Private Foundation7KHRUJDQL]DWLRQLVQRWUHTXLUHGWREXWPD\REWDLQDGHWHUPLQDWLRQOHWWHU
RQLWVQHZSULYDWHIRXQGDWLRQVWDWXV7KHRUJDQL]DWLRQLQGLFDWHVWKLVFKDQJHLQIRXQGDWLRQVWDWXVE\
¿OLQJLWV)RUP3)UHWXUQDQGIROORZLQJDQ\SURFHGXUHVVSHFL¿HGLQWKHIRUPLQVWUXFWLRQVRU
RWKHUSXEOLVKHGJXLGDQFH7KHUHDIWHUWKHRUJDQL]DWLRQPD\WHUPLQDWHLWVSULYDWHIRXQGDWLRQVWDWXV
such as by giving notice and qualifying as a public charity again under § 509(a)(1)-(3) during a
60-month termination period in accordance with the procedures under § 507(b)(1)(B) and Treas.
Reg. § 1.507-2(b).
(3) Requests from private foundations for public charity status.$QRUJDQL]DWLRQWKDWHUURneously determined that it was a private foundation (for example, by erroneously classifying an
item or items in its calculation of public support) and wishes to correct the error can request a determination letter classifying it as a public charity by showing that it continuously met the public
support tests during the relevant periods.
(4) Requests for private operating foundation status. A private foundation may qualify as
an operating foundation under § 4942(j)(3) without a determination letter from the Service, but
WKH6HUYLFHZLOOQRWUHFRJQL]HVXFKVWDWXVLQLWVUHFRUGVZLWKRXWDGHWHUPLQDWLRQOHWWHUIURPWKH
6HUYLFH$QRUJDQL]DWLRQFODLPLQJWREHDQH[HPSWRSHUDWLQJIRXQGDWLRQXQGHU†GPXVW
REWDLQ D GHWHUPLQDWLRQ OHWWHU IURP WKH 6HUYLFH UHFRJQL]LQJ VXFK VWDWXV WR EH H[HPSW IURP WKH
§ 4940 tax on net investment income.

January 2, 2020

262

Bulletin No. 2020–1

Not applicable to notices
submitted by private
foundations regarding
terminations under § 507 or
changes of status pursuant
to examination

.05
7KHSURFHGXUHVLQWKLVUHYHQXHSURFHGXUHGRQRWDSSO\WRWKHQRWLFHDQRUJDQL]DWLRQPXVW
submit in seeking to terminate its private foundation status under § 507.
(2) The procedures in this revenue procedure also do not apply to the examination of an organi]DWLRQZKLFKUHVXOWVLQFKDQJHVWRLWVIRXQGDWLRQVWDWXV

SECTION 8.
WITHDRAWAL OF
A REQUEST FOR
DETERMINATION
LETTER
Request may be withdrawn
prior to issuance of a
determination letter

.01 A taxpayer may withdraw a request for a determination letter at any time before the deterPLQDWLRQOHWWHULVLVVXHGE\WKH6HUYLFH$QDXWKRUL]HGLQGLYLGXDOPXVWPDNHVXFKDUHTXHVWLQ
writing in accordance with the instructions to the form on which the request for a determination
letter was submitted, if applicable. For purposes of this section, the issuance of a determination
letter includes a proposed adverse determination letter.
(1) When a request for determination letter is withdrawn, the Service will retain the application,
Form 8940, or letter request and all supporting documents.
(2) The Service may consider the information submitted in connection with the withdrawn
UHTXHVWLQDVXEVHTXHQWH[DPLQDWLRQRIWKHRUJDQL]DWLRQRULQFRQQHFWLRQZLWKDVXEVHTXHQWDSSOLFDWLRQVXEPLWWHGE\WKHRUJDQL]DWLRQ
(3) Generally, the user fee will not be refunded if a request is withdrawn. See section 14 of this
revenue procedure.

Section 7428 implications of
withdrawal of application
under § 501(c) or (d)

.02 The withdrawal of an application under § 501(c) or (d) is not a failure to make a determination within the meaning of § 7428(a)(2) or an exhaustion of administrative remedies within the
meaning of § 7428(b)(2).

SECTION 9.
PROCEDURES
FOR ADVERSE
DETERMINATION
LETTERS
In general

.01 This section explains the procedures for issuing adverse determination letters. Different
procedures apply to adverse determination letters relating to issues that may receive consideration
E\WKH,QGHSHQGHQW2I¿FHRI$SSHDOVDQGWRDOORWKHUW\SHVRIDGYHUVHGHWHUPLQDWLRQOHWWHUV

Types of requests that may
UHFHLYH,QGHSHQGHQW2I¿FH
of Appeals consideration

.7KHIROORZLQJW\SHVRIGHWHUPLQDWLRQOHWWHUUHTXHVWVZLOOSURYLGHDQRUJDQL]DWLRQZLWKDQ
RSSRUWXQLW\WRSURWHVWDSSHDODSURSRVHGDGYHUVHGHWHUPLQDWLRQ
WKHLQLWLDOTXDOL¿FDWLRQRIWKHRUJDQL]DWLRQDVH[HPSWIURPWD[XQGHU†DRU†RUDV
DQRUJDQL]DWLRQGHVFULEHGLQ†F

Bulletin No. 2020–1

263

January 2, 2020

WKHFODVVL¿FDWLRQRUUHFODVVL¿FDWLRQRIWKHRUJDQL]DWLRQ¶VIRXQGDWLRQVWDWXVXQGHU†D
and
WKHFODVVL¿FDWLRQRIWKHRUJDQL]DWLRQDVDSULYDWHRSHUDWLQJIRXQGDWLRQXQGHU†M
Contents of proposed
adverse determination
letter for requests with
appeals rights

.,I(2'HWHUPLQDWLRQVUHDFKHVWKHFRQFOXVLRQWKDWWKHRUJDQL]DWLRQGRHVQRWPHHWWKHUHquirements for a favorable determination letter and the letter is a type for which an opportunity
for protest/appeal is available under section 9.02, the Service will issue a proposed adverse deterPLQDWLRQOHWWHUZKLFKZLOO
(1) include a detailed discussion of the basis for the Service’s conclusion; and
LQIRUPWKHRUJDQL]DWLRQRILWVRSSRUWXQLW\WRSURWHVWDSSHDOWKHGHFLVLRQDQGUHTXHVWDFRQIHUHQFHZLWKWKH,QGHSHQGHQW2I¿FHRI$SSHDOV
The non-acceptance under section 4.10 of a request for a determination letter is not a proposed
adverse determination.

Protest/appeal of a
proposed adverse
determination letter on
certain issues

.04 To protest/appeal a proposed adverse determination letter described in section 9.02, the
RUJDQL]DWLRQPXVWVXEPLWDVWDWHPHQWRIWKHIDFWVODZDQGDUJXPHQWVLQVXSSRUWRILWVSRVLWLRQ
ZLWKLQGD\VIURPWKHGDWHRIWKHSURSRVHGDGYHUVHGHWHUPLQDWLRQOHWWHU7KHRUJDQL]DWLRQPXVW
DOVRVWDWHZKHWKHULWLVUHTXHVWLQJDFRQIHUHQFHZLWKWKH,QGHSHQGHQW2I¿FHRI$SSHDOV

Final adverse determination
letter where no protest/
appeal is submitted

.,IDQRUJDQL]DWLRQGRHVQRWVXEPLWDWLPHO\SURWHVWDSSHDORIDSURSRVHGDGYHUVHGHWHUPLQDWLRQOHWWHURQDQLVVXHGHVFULEHGLQVHFWLRQD¿QDODGYHUVHGHWHUPLQDWLRQOHWWHUZLOOEHLVVXHG
WRWKHRUJDQL]DWLRQ7KH¿QDODGYHUVHOHWWHUZLOOSURYLGHLQIRUPDWLRQDERXWWKHGLVFORVXUHRIWKH
SURSRVHGDQG¿QDODGYHUVHOHWWHUVSee section 13.04 of this revenue procedure.
7KHQRQDFFHSWDQFHXQGHUVHFWLRQRIDUHTXHVWIRUDGHWHUPLQDWLRQOHWWHULVQRWD¿QDODGverse determination.

Review of protest by EO
Determinations

.,IDQRUJDQL]DWLRQVXEPLWVDSURWHVWDSSHDORIDSURSRVHGDGYHUVHGHWHUPLQDWLRQOHWWHUGHscribed in section 9.02, EO Determinations will review the protest, and, if it determines that the
RUJDQL]DWLRQPHHWVWKHUHTXLUHPHQWVIRUDSSURYDORILWVUHTXHVWLVVXHDIDYRUDEOHGHWHUPLQDWLRQ
letter. If EO Determinations maintains its adverse position after reviewing the protest, it will forZDUGWKHFDVH¿OHWRWKH,QGHSHQGHQW2I¿FHRI$SSHDOV,IQHZLQIRUPDWLRQLVUDLVHGLQWKHSURWHVW
EO Determinations will follow the procedures described in section 9.08, which may require the
LVVXDQFHRIDQHZSURSRVHGGHQLDOSULRUWRVHQGLQJWKHFDVHWRWKH,QGHSHQGHQW2I¿FHRI$SSHDOV

Consideration by the
,QGHSHQGHQW2I¿FHRI
Appeals

.7KH,QGHSHQGHQW2I¿FHRI$SSHDOVZLOOFRQVLGHUWKHRUJDQL]DWLRQ¶VSURWHVWDSSHDOVXEPLWted in response to a proposed adverse determination letter described in section 9.02. If the IndeSHQGHQW2I¿FHRI$SSHDOVDJUHHVZLWKWKHSURSRVHGDGYHUVHGHWHUPLQDWLRQLWZLOOHLWKHULVVXHD¿QDODGYHUVHGHWHUPLQDWLRQRULIDFRQIHUHQFHZDVUHTXHVWHGFRQWDFWWKHRUJDQL]DWLRQWRVFKHGXOHD
conference. At the end of the conference process, which may involve the submission of additional
LQIRUPDWLRQWKH,QGHSHQGHQW2I¿FHRI$SSHDOVZLOOJHQHUDOO\LVVXHD¿QDODGYHUVHGHWHUPLQDWLRQ
letter or a favorable determination letter.
,IWKH,QGHSHQGHQW2I¿FHRI$SSHDOVEHOLHYHVWKDWDQH[HPSWLRQRUSULYDWHIRXQGDWLRQVWDWXV
LVVXHLVQRWFRYHUHGE\SXEOLVKHGSUHFHGHQWRUWKDWWKHUHLVQRQXQLIRUPLW\WKH,QGHSHQGHQW2I¿FH

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RI$SSHDOVPXVWUHTXHVWWHFKQLFDODGYLFHIURPWKH2I¿FHRI$VVRFLDWH&KLHI&RXQVHO(PSOR\HH
%HQH¿WV([HPSW2UJDQL]DWLRQVDQG(PSOR\PHQW7D[HVSee Rev. Proc. 2020-2, this Bulletin.
Effect of new information
raised in protest/appeal

.,IWKHRUJDQL]DWLRQVXEPLWVQHZLQIRUPDWLRQDVSDUWRIDSURWHVWRUGXULQJFRQVLGHUDWLRQE\
WKH,QGHSHQGHQW2I¿FHRI$SSHDOVWKHPDWWHUPD\EHUHWXUQHGWR(2'HWHUPLQDWLRQVIRUIXUWKHU
consideration. As a result of its review of the new information, EO Determinations may issue a
favorable determination letter, rebuttal letter, or new proposed adverse determination letter. If a
UHEXWWDOOHWWHULVLVVXHG(2'HWHUPLQDWLRQVZLOOIRUZDUGWKHFDVHWRWKH,QGHSHQGHQW2I¿FHRI
$SSHDOV,IDQHZSURSRVHGDGYHUVHGHWHUPLQDWLRQOHWWHULVLVVXHGWKHRUJDQL]DWLRQPXVWVXEPLWD
protest/appeal of the new proposed adverse determination letter in order to have consideration of
WKHLVVXHE\WKH,QGHSHQGHQW2I¿FHRI$SSHDOV

An appeal or protest may
be withdrawn

.$QRUJDQL]DWLRQPD\ZLWKGUDZLWVSURWHVWDSSHDOEHIRUHWKH6HUYLFHLVVXHVD¿QDODGYHUVH
determination letter. Upon receipt of the withdrawal request, the Service will complete the proFHVVLQJRIWKHFDVHLQWKHVDPHPDQQHUDVLIQRDSSHDORUSURWHVWZDVUHFHLYHG$QRUJDQL]DWLRQ
that withdraws a protest/appeal will not be considered to have exhausted its administrative remedies within the meaning of § 7428(b)(2).

Appeal and conference
rights not applicable in
certain situations

.10 The opportunity to appeal a proposed adverse determination letter and the conference rights
described above are not applicable to matters where delay would be prejudicial to the interests
of the Service (such as in cases involving fraud, jeopardy, the imminence of the expiration of the
statute of limitations, or where immediate action is necessary to protect the interests of the Government).

Adverse determination
letter on an issue that will
not receive consideration by
WKH,QGHSHQGHQW2I¿FHRI
Appeals

.,I(2'HWHUPLQDWLRQVUHDFKHVWKHFRQFOXVLRQWKDWWKHRUJDQL]DWLRQGRHVQRWPHHWWKHUHquirements for a favorable determination on an issue that is not described in section 9.02 (e.g.,
advance approval that a potential grant or contribution constitutes an “unusual grant”; exemption
IURP)RUP¿OLQJUHTXLUHPHQWVWKH6HUYLFHJHQHUDOO\ZLOODGYLVHWKHRUJDQL]DWLRQRILWVDGYHUVHSRVLWLRQDQGJLYHWKHRUJDQL]DWLRQDFKDQFHWRVXEPLWDGGLWLRQDOLQIRUPDWLRQRUZLWKGUDZWKH
request before issuing an adverse determination letter, which will include a detailed discussion of
WKHEDVLVIRUWKH6HUYLFH¶VFRQFOXVLRQ7KHRUJDQL]DWLRQZLOOQRWKDYHWKHRSSRUWXQLW\WRSURWHVW
appeal the adverse determination letter.

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

.*HQHUDOO\DGHFODUDWRU\MXGJPHQWSURFHHGLQJXQGHU†FDQEH¿OHGLQWKH8QLWHG6WDWHV
Tax Court, the United States Court of Federal Claims, or the District Court of the United States
for the District of Columbia with respect to an actual controversy involving a determination by the
6HUYLFHRUDIDLOXUHRIWKH6HUYLFHWRPDNHDGHWHUPLQDWLRQZLWKUHVSHFWWR

WKHLQLWLDOTXDOL¿FDWLRQRUFRQWLQXLQJTXDOL¿FDWLRQRIDQRUJDQL]DWLRQDVDQRUJDQL]DWLRQ
GHVFULEHGLQ†FZKLFKLVH[HPSWIURPWD[XQGHU†DRUDVDQRUJDQL]DWLRQGHVFULEHG
in § 170(c)(2);

WKHLQLWLDOFODVVL¿FDWLRQRUFRQWLQXLQJFODVVL¿FDWLRQRIDQRUJDQL]DWLRQDVDSULYDWHIRXQGDWLRQDVGH¿QHGLQ†D

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January 2, 2020

WKHLQLWLDOFODVVL¿FDWLRQRUFRQWLQXLQJFODVVL¿FDWLRQRIDQRUJDQL]DWLRQDVDSULYDWHRSHUDWLQJ
IRXQGDWLRQDVGH¿QHGLQ†M
WKHLQLWLDOFODVVL¿FDWLRQRUFRQWLQXLQJFODVVL¿FDWLRQRIDFRRSHUDWLYHDVDQRUJDQL]DWLRQGHscribed in § 521(b) which is exempt from tax under § 521(a); or
 WKH LQLWLDO TXDOL¿FDWLRQ RU FRQWLQXLQJ TXDOL¿FDWLRQ RI DQ RUJDQL]DWLRQ DV DQ RUJDQL]DWLRQ
described in § 501(c) (other than paragraph (3)) or § 501(d) and exempt from tax under § 501(a).
Final determination to
which § 7428 applies

.$¿QDOGHWHUPLQDWLRQWRZKLFK†DSSOLHVLVDGHWHUPLQDWLRQOHWWHUVHQWE\FHUWL¿HGRU
UHJLVWHUHGPDLOZKLFKKROGVWKDWWKHRUJDQL]DWLRQLV
(1) not described in § 501(c), § 501(d), or § 170(c)(2);
(2) a public charity described in a part of § 509 or § 170(b)(1)(A) other than the part under
ZKLFKWKHRUJDQL]DWLRQUHTXHVWHGFODVVL¿FDWLRQ
QRWDSULYDWHRSHUDWLQJIRXQGDWLRQDVGH¿QHGLQ†MRU
(4) a private foundation and not a public charity described in a part of § 509 or § 170(b)(1)(A).

Failure to make a
determination to which
§ 7428 applies

.03 If the Service declines to issue a determination letter under section 3.02 of this revenue
SURFHGXUHWRDQRUJDQL]DWLRQVHHNLQJDGHWHUPLQDWLRQGHVFULEHGLQVHFWLRQRIWKLVUHYHQXH
SURFHGXUHWKHRUJDQL]DWLRQPD\EHDEOHWRSXUVXHDGHFODUDWRU\MXGJPHQWXQGHU†SURYLGHG
that it has exhausted its administrative remedies.

Section 7428 does not apply
to the non-acceptance or
withdrawal of a request

.04 (1) The non-acceptance for processing of a request under section 4.10 of this revenue proFHGXUHLVQRWD¿QDOGHWHUPLQDWLRQRUDIDLOXUHWRPDNHDGHWHUPLQDWLRQWRZKLFK†DSSOLHV
(2) The withdrawal of an application pursuant to section 8 is not a failure to make a determination within the meaning of § 7428(b)(2).

Exhaustion of
administrative remedies

.%HIRUH¿OLQJDGHFODUDWRU\MXGJPHQWDFWLRQDQRUJDQL]DWLRQPXVWH[KDXVWLWVDGPLQLVWUDWLYH
remedies by taking, in a timely manner, all reasonable steps to secure a determination from the
6HUYLFH7KHVHLQFOXGH
D)RUDQRUJDQL]DWLRQVHHNLQJWREHGHVFULEHGLQ†FWKH¿OLQJRIDFRPSOHWHG
application Form 1023 (within the meaning of section 6.06(1) of this revenue procedure) or a
completed Form 1023-EZ (within the meaning of section 6.06(2) of this revenue procedure);
E)RUDQRUJDQL]DWLRQVHHNLQJSULYDWHIRXQGDWLRQFODVVL¿FDWLRQDFRPSOHWHG)RUPRU
F)RUDQRUJDQL]DWLRQVHHNLQJWREHGHVFULEHGLQ†FRWKHUWKDQSDUDJUDSKRULQ†
501(d), a completed appropriate Form or letter request (within the meaning of section 6.06(1)).
(2) In appropriate cases, requesting relief pursuant to Treas. Reg. § 301.9100-1 regarding the
extension of time for making an election or application for relief from tax;

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(3) When applicable, the timely submission of all additional information requested by the Service to perfect a determination letter request;
(4) In appropriate cases, requesting relief under § 7805(b) in the manner provided in section
12.04 of this revenue procedure; and
(5) Exhaustion of all administrative appeals available within the Service pursuant to section 9
of this revenue procedure.
$QRUJDQL]DWLRQZLOOQRWKDYHH[KDXVWHGLWVDGPLQLVWUDWLYHUHPHGLHVE\FRPSOHWLQJWKHVWHSV
LQWKLVVHFWLRQLIWKHRUJDQL]DWLRQVXEPLWWHG)RUP(=EXWZDVQRWHOLJLEOHWRVXEPLW)RUP
1023-EZ, as described in section 6.05(1)-(2) of this revenue procedure.
Not earlier than 270 days
after seeking determination

.$QRUJDQL]DWLRQZLOOLQQRHYHQWEHGHHPHGWRKDYHH[KDXVWHGLWVDGPLQLVWUDWLYHUHPHGLHV
SULRUWRWKHHDUOLHURI
(1) the completion of all reasonable steps to secure a determination from the Service, including
WKHDSSOLFDEOHVWHSVLQVHFWLRQDQGWKHLVVXDQFHE\WKH6HUYLFHE\FHUWL¿HGRUUHJLVWHUHGPDLO
RID¿QDOGHWHUPLQDWLRQOHWWHURU
(2) the expiration of the 270-day period described in § 7428(b)(2) in a case where the Service
KDVQRWLVVXHGD¿QDOGHWHUPLQDWLRQOHWWHUDQGWKHRUJDQL]DWLRQKDVWDNHQLQDWLPHO\PDQQHUDOO
reasonable steps to secure a determination letter as provided in section 10.05. The 270-day period
referred to in § 7428(b)(2) will not be considered to have started prior to the date a completed
application is submitted to the Service. If the Service requests additional information from an
RUJDQL]DWLRQWKHSHULRGRIWLPHEHJLQQLQJRQWKHGDWHWKH6HUYLFHUHTXHVWVDGGLWLRQDOLQIRUPDWLRQ
until the date the information is submitted to the Service will not be counted for purposes of the
270-day period referred to in § 7428(b)(2).

Service must have
reasonable time to act on an
appeal or protest

.07 The steps described in section 10.05 will not be considered completed until the Service has
had a reasonable time to act upon a protest/appeal.

SECTION 11.
FAVORABLE
DETERMINATION
LETTERS
Reliance on determination
letter

Limitations on reliance

.01 A taxpayer ordinarily may rely on a favorable determination letter received from the Service, regardless of the format of request submitted, subject to the conditions and limitations described in this section.
.02
(1) Will not apply to another taxpayer. A taxpayer may not rely on, use, or cite as precedent
a determination letter issued to another taxpayer. See § 6110(k)(3).
(2) Material change in facts. $GHWHUPLQDWLRQOHWWHUPD\QRWEHUHOLHGXSRQE\WKHRUJDQL]DWLRQ
submitting the request if there is a material change in facts. For a determination letter on exempt
status, a material change includes a change in the character, the purpose, or the method of oper-

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January 2, 2020

DWLRQRIWKHRUJDQL]DWLRQWKDWLVLQFRQVLVWHQWZLWKH[HPSWLRQSee section 12.01 of this revenue
procedure.
(3) Inaccurate information on request.$GHWHUPLQDWLRQOHWWHULVVXHGWRDQRUJDQL]DWLRQWKDW
submitted a request in accordance with this revenue procedure may not be relied upon by the orgaQL]DWLRQVXEPLWWLQJWKHUHTXHVWLILWZDVEDVHGRQDQ\RPLVVLRQRULQDFFXUDWHPDWHULDOLQIRUPDWLRQ
VXEPLWWHGE\WKHRUJDQL]DWLRQ,QDFFXUDWHPDWHULDOLQIRUPDWLRQLQFOXGHVDQLQFRUUHFWUHSUHVHQWDWLRQRUDWWHVWDWLRQDVWRWKHRUJDQL]DWLRQ¶VRUJDQL]DWLRQDOGRFXPHQWVWKHRUJDQL]DWLRQ¶VH[HPSW
SXUSRVHWKHRUJDQL]DWLRQ¶VFRQGXFWRISURKLELWHGDQGUHVWULFWHGDFWLYLWLHVRUWKHRUJDQL]DWLRQ¶V
HOLJLELOLW\WR¿OH)RUP(=See section 12.01 of this revenue procedure.
(4) Change in law. A change in law may affect reliance. See section 12.01 of this revenue
procedure.
Post-determination review

.03
(1) Determination letters may be post-reviewed. Determination letters may be reviewed by
EO Determinations Quality Assurance to assure uniform application of the statutes, tax treaties,
regulations, court opinions, or guidance published in the Internal Revenue Bulletin.
(2) Procedures for addressing determination letters reviewed and found to have been issued in error. If upon post-determination review EO Determinations Quality Assurance conFOXGHVEDVHGRQWKHLQIRUPDWLRQFRQWDLQHGLQWKHH[LVWLQJDSSOLFDWLRQ¿OHWKDWDGHWHUPLQDWLRQ
letter issued by EO Determinations was issued in error, the matter will be referred to EO Examinations for consideration.

SECTION 12.
REVOCATION OR
MODIFICATION OF
A DETERMINATION
LETTER

.01 In general. $GHWHUPLQDWLRQOHWWHUPD\EHUHYRNHGRUPRGL¿HG
(1) by a notice to the taxpayer to whom the determination letter was issued;
E\HQDFWPHQWRIOHJLVODWLRQRUUDWL¿FDWLRQRIDWD[WUHDW\
(3) by a decision of the Supreme Court of the United States;
E\WKHLVVXDQFHRIWHPSRUDU\RU¿QDOUHJXODWLRQV
(5) by the issuance of a revenue ruling, revenue procedure, or other statement published in the
Internal Revenue Bulletin; or
DXWRPDWLFDOO\E\RSHUDWLRQRI†MIRUIDLOXUHWR¿OHDUHTXLUHGDQQXDOUHWXUQRUQRWLFH
for three consecutive years.
Note: ,I DQ RUJDQL]DWLRQ QR ORQJHU TXDOL¿HV XQGHU WKH &RGH VHFWLRQ IRU ZKLFK LW RULJLQDOO\
applied for recognition of tax-exempt status, then the determination letter will be revoked, rather
WKDQPRGL¿HG

Appeal and conference
procedures in the case of
UHYRFDWLRQRUPRGL¿FDWLRQ
of exempt status letter

January 2, 2020

.,QWKHFDVHRIDUHYRFDWLRQRUPRGL¿FDWLRQRIDGHWHUPLQDWLRQOHWWHUGHVFULEHGLQVHFWLRQ
WKHSURFHGXUHVWRSURWHVWDSSHDOWKHUHYRFDWLRQRUPRGL¿FDWLRQDUHJHQHUDOO\WKHVDPHDVVHW

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RXWLQVHFWLRQRIWKLVUHYHQXHSURFHGXUH+RZHYHURUJDQL]DWLRQVUHYRNHGXQGHU†MZLOO
QRWKDYHDQRSSRUWXQLW\IRUFRQVLGHUDWLRQE\WKH,QGHSHQGHQW2I¿FHRI$SSHDOV
5HYRFDWLRQRUPRGL¿FDWLRQ
of a determination letter
may be retroactive

.7KHUHYRFDWLRQRUPRGL¿FDWLRQRIDGHWHUPLQDWLRQOHWWHUPD\EHUHWURDFWLYHLI
(1) there has been a change in the applicable law;
WKHRUJDQL]DWLRQRPLWWHGRUPLVVWDWHGPDWHULDOLQIRUPDWLRQ$PLVVWDWHPHQWRIPDWHULDOLQIRUPDWLRQLQFOXGHVDQLQFRUUHFWUHSUHVHQWDWLRQRUDWWHVWDWLRQDVWRWKHRUJDQL]DWLRQ¶VRUJDQL]DWLRQDO
GRFXPHQWVWKHRUJDQL]DWLRQ¶VH[HPSWSXUSRVHWKHRUJDQL]DWLRQ¶VFRQGXFWRISURKLELWHGDQGUHVWULFWHGDFWLYLWLHVRUWKHRUJDQL]DWLRQ¶VHOLJLELOLW\WR¿OH)RUP(=
WKHRUJDQL]DWLRQRSHUDWHGLQDPDQQHUPDWHULDOO\GLIIHUHQWIURPWKDWRULJLQDOO\UHSUHVHQWHG
in an application for recognition of exemption; or
LQWKHFDVHRIDQRUJDQL]DWLRQWRZKLFK†DSSOLHVWKHRUJDQL]DWLRQHQJDJHGLQDSURKLELWHGWUDQVDFWLRQZLWKWKHSXUSRVHRIGLYHUWLQJFRUSXVRULQFRPHRIWKHRUJDQL]DWLRQIURPLWV
exempt purpose and such transaction involved a substantial part of the corpus or income of such
RUJDQL]DWLRQ
,IDGHWHUPLQDWLRQOHWWHULVUHYRNHGRUPRGL¿HGE\DOHWWHUZLWKUHWURDFWLYHHIIHFWWKHOHWWHUZLOO
except in fraud cases, state the grounds on which the determination letter is being revoked or modL¿HGDQGH[SODLQWKHUHDVRQVZK\LWLVEHLQJUHYRNHGRUPRGL¿HGUHWURDFWLYHO\

Organization may request
that retroactivity be limited
under § 7805(b)

.$QRUJDQL]DWLRQPD\VHHNUHOLHIIURPUHWURDFWLYHUHYRFDWLRQRUPRGL¿FDWLRQRIDGHWHUPLnation letter under § 7805(b). A request for relief under § 7805(b) must be in writing and must be
submitted to the agent or specialist assigned to the case. The request for relief under § 7805(b)
PXVWEHVXEPLWWHGEHIRUHLVVXDQFHRIWKH¿QDODGYHUVHGHWHUPLQDWLRQOHWWHU
(1) Form of request for relief. $QRUJDQL]DWLRQ¶VUHTXHVWWROLPLWWKHUHWURDFWLYHHIIHFWRIWKH
UHYRFDWLRQRUPRGL¿FDWLRQRIWKHGHWHUPLQDWLRQOHWWHUPXVW²
(a) state that it is being made under § 7805(b);
(b) state the relief sought;
(c) explain the reasons and arguments in support of the relief sought; and
(d) include any documents bearing on the request.
(2) Notice of denial of request for relief. If the request for relief under § 7805(b) is denied, the
RUJDQL]DWLRQZLOOEHQRWL¿HGLQZULWLQJRIWKHGHQLDO
(3) Organization must exhaust its administrative remedies. ,IDQRUJDQL]DWLRQVHHNVGHFODUDWRU\MXGJPHQWXQGHU†LQUHVSRQVHWRDUHWURDFWLYHUHYRFDWLRQRUPRGL¿FDWLRQWRSUHVHUYH
MXGLFLDOUHYLHZRIDFODLPIRUUHOLHIXQGHU†EWKHRUJDQL]DWLRQPXVWIROORZWKHVWHSVLQWKLV
revenue procedure in order to have exhausted its administrative remedies with respect to its reTXHVWXQGHU†E,IWKHRUJDQL]DWLRQGRHVQRWFRPSOHWHWKHDSSOLFDEOHVWHSVWKHRUJDQL]DWLRQ

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will not have exhausted its administrative remedies as required by § 7428(b)(2) with respect to
its request for § 7805(b) relief, and will thus be precluded from obtaining § 7805(b) relief in any
declaratory judgment it seeks under § 7428.
,IWKHRUJDQL]DWLRQKDVUHTXHVWHG†EUHOLHIWKHRUJDQL]DWLRQ
VDGPLQLVWUDWLYHUHPHGLHV
with respect to its § 7805(b) request will not be considered exhausted until the Service has had a
reasonable amount of time to act upon the request.
Effective date of revocation
RUPRGL¿FDWLRQRID
determination letter on
exempt status

.05 (IIHFWLYHGDWHRIUHYRFDWLRQRUPRGL¿FDWLRQ
:KHUHWKHRUJDQL]DWLRQRPLWWHGRUPLVVWDWHGPDWHULDOLQIRUPDWLRQLQDUHTXHVWUHYRFDWLRQRU
PRGL¿FDWLRQZLOOEHHIIHFWLYHDVRIWKHHIIHFWLYHGDWHRIWKHGHWHUPLQDWLRQOHWWHULVVXHGLQUHVSRQVH
to the request.
(2) Where there is a material change in facts, inconsistent with the conclusion of a determinaWLRQOHWWHUUHYRFDWLRQRUPRGL¿FDWLRQZLOORUGLQDULO\WDNHHIIHFWDVRIWKHGDWHRIVXFKPDWHULDO
change.
(3) If a determination letter was issued in error or is no longer in accord with the Service’s position, and § 7805(b) relief is granted (see section 12.04 of this revenue procedure), ordinarily, the
UHYRFDWLRQRUPRGL¿FDWLRQZLOOEHHIIHFWLYHQRWHDUOLHUWKDQWKHGDWHRQZKLFKWKH6HUYLFHPRGL¿HV
or revokes the original determination letter.

SECTION 13.
DISCLOSURE OF
APPLICATIONS AND
DETERMINATION
LETTERS INCLUDING
THAT OF FOUNDATION
STATUS
Determination letter will
be disclosed under § 6104
or § 6110 depending on
the type of request and the
type of determination letter
issued

.01 Sections 6104 and 6110 provide rules for the disclosure of requests, including forms, supporting documents, and determination letters issued in response to requests.
(1) A favorable determination letter issued in response to an application for recognition
of exemption from Federal income tax under §§ 501 or 521, as well as certain determination
letters regarding foundation status are disclosed under § 6104. Determination letters that an
DSSOLFDQWRUJDQL]DWLRQLVH[HPSWIURP)HGHUDOLQFRPHWD[DQGOHWWHUVRUGRFXPHQWVLVVXHGE\WKH
6HUYLFHWKDWDQRUJDQL]DWLRQLVRULVQRWDSULYDWHIRXQGDWLRQRUGHVFULEHGLQ††DG
(2), 4942(j)(3), or 4943(f) are disclosed under § 6104.
(2) Other determination letters are disclosed under § 6110. Any determination letter that
LVQRWGLVFORVHGXQGHU†LVGLVFORVHGXQGHU†7KLVLQFOXGHVSURSRVHGDQG¿QDOGHQLDO
RIH[HPSWLRQZKHQVXFKGHQLDOEHFRPHV¿QDODGYDQFHDSSURYDORIJUDQWPDNLQJSURFHGXUHVGHscribed in § 4545(g), advance approval of certain set-asides described in § 4942(g)(2), advance
approval of voter registration activities described in § 4945(f), and advance approval of an unusual grant per Rev. Proc. 2018-32, 2018-23 I.R.B. 739.
(3) Whether other determination letters are disclosed under § 6104 or § 6110 will vary based on
the type of determination.

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Disclosure of applications,
supporting documents, and
favorable determination
letters under § 6104

.02 If a favorable determination letter is issued in response to an application for recognition
of exemption from Federal income tax under § 501 or § 521, the application form, any supporting documents, and any determination letter issued in response to the application (including a
proposed adverse determination letter), are available for public inspection upon request under
†D,QDGGLWLRQOHWWHUVRUGRFXPHQWVLVVXHGE\WKH6HUYLFHWKDWDQRUJDQL]DWLRQLVRU
is not a private foundation, or described in §§ 509(a), 4940(d)(2), 4942(j)(3), or 4943(f) are disclosed under § 6104. However, there are certain limited disclosure exceptions for a trade secret,
patent, process, style of work, or apparatus, if the Service determines that the disclosure of the
LQIRUPDWLRQZRXOGDGYHUVHO\DIIHFWWKHRUJDQL]DWLRQ
(1) The public can request information available for public inspection under § 6104(a)(1) by
submitting Form 4506–A, Request for Public Inspection or Copy of Exempt or Political Organization IRS Form.2UJDQL]DWLRQVVKRXOGHQVXUHWKDWDSSOLFDWLRQVDQGVXSSRUWLQJGRFXPHQWVGRQRW
include unnecessary personal identifying information (such as bank account numbers or social
security numbers) that could result in identity theft or other adverse consequences if publicly
disclosed.
7KHH[HPSWRUJDQL]DWLRQLVUHTXLUHGWRPDNHLWVH[HPSWLRQDSSOLFDWLRQIRUPVXSSRUWLQJ
documents, and any determination letter issued in response to the application (including a proposed adverse determination letter) available for public inspection without charge. For more inforPDWLRQDERXWWKHH[HPSWRUJDQL]DWLRQ¶VGLVFORVXUHREOLJDWLRQV see Publication 557, Tax-Exempt
Status for Your Organization.

Disclosure of determination
letters under § 6110

.03 The Service is required to make any determination letter that is not disclosed under § 6104,
including adverse determinations of exempt status, available for public inspection under § 6110.
8SRQLVVXDQFHRIWKH¿QDODGYHUVHGHWHUPLQDWLRQOHWWHUWRDQRUJDQL]DWLRQERWKWKHSURSRVHGDGYHUVHGHWHUPLQDWLRQOHWWHUDQGWKH¿QDODGYHUVHGHWHUPLQDWLRQOHWWHUZLOOEHUHOHDVHGSXUVXDQWWR
§ 6110. In addition, determinations of advance approval of grant making procedures described in
§ 4945(g), advance approval of certain set-asides described in § 4942(g)(2), advance approval of
voter registration activities described in § 4945(f), and advance approval of an unusual grant per
Rev. Proc. 2018-32, 2018-23 I.R.B. 739, will be released pursuant to § 6110.
7KHZULWWHQGHWHUPLQDWLRQDQGEDFNJURXQG¿OHGRFXPHQWVDUHPDGHDYDLODEOHWRWKHSXEOLFDIWHU
the deletion of names, addresses, and any other information that might identify the taxpayer. See
†FIRURWKHUVSHFL¿FGLVFORVXUHH[HPSWLRQV

Taxpayer may protest
disclosure under § 6110 of
certain information in a
determination letter

.04 If the determination letter is being disclosed under § 6110, the determination letter will
enclose Notice 437, Notice of Intention to Disclose,DQGUHGDFWHGFRSLHVRIWKH¿QDODQGSURSRVHG
adverse determination letters. Notice 437 provides procedures to follow and instructions if the
RUJDQL]DWLRQGLVDJUHHVZLWKWKHGHOHWLRQVSURSRVHGE\WKH6HUYLFH
Within 20 calendar days after the Service receives the response to the Notice 437, the Service
ZLOOPDLOWRWKHWD[SD\HULWV¿QDODGPLQLVWUDWLYHFRQFOXVLRQUHJDUGLQJWKHGHOHWLRQVWREHPDGH
The taxpayer does not have the right to a conference to resolve any disagreements concerning material to be deleted from the text of the determination letter. However, these matters may be taken
XSDWDFRQIHUHQFHZLWKWKH,QGHSHQGHQW2I¿FHRI$SSHDOVWKDWLVRWKHUZLVHVFKHGXOHGUHJDUGLQJ
the request, if available under section 9 of this revenue procedure.

Taxpayer may request delay
of public inspection under
§ 6110

Bulletin No. 2020–1

.05 After receiving the Notice 437, but within 60 calendar days after the date of notice, the
taxpayer may send a request for delay of public inspection under either § 6110(g)(3) or (4). The
UHTXHVWIRUGHOD\PXVWEHVHQWWRWKH6HUYLFHRI¿FHLQGLFDWHGRQWKH1RWLFH7KHUHTXHVWIRU

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January 2, 2020

delay under § 6110(g)(4) must contain a statement from which the Commissioner of Internal Revenue may determine that there are good reasons for the delay.
Note: Section 6110(l)(1) states that § 6110 disclosure provisions do not apply to any matter to
ZKLFK†DSSOLHV7KHUHIRUHGLVFORVXUHRIGHWHUPLQDWLRQOHWWHUVDQGUHODWHGEDFNJURXQG¿OH
GRFXPHQWVGHDOLQJZLWKDQDSSURYHGDSSOLFDWLRQIRUH[HPSWLRQXQGHU†DDVDQRUJDQL]DWLRQ
GHVFULEHGLQ†FRUGRUDQRWLFHRIVWDWXVDVDSROLWLFDORUJDQL]DWLRQXQGHU†FRYHUHG
by § 6104) may not be protested or delayed by request of the taxpayer.
'LVFORVXUHWRVWDWHRI¿FLDOV
when the Service refuses to
recognize exemption under
§ 501(c)(3)

.7KH6HUYLFHPD\QRWLI\WKHDSSURSULDWHVWDWHRI¿FLDOVRIDUHIXVDOWRUHFRJQL]HDQRUJDQL]Dtion as tax-exempt under § 501(c)(3). See†F7KHQRWLFHWRWKHVWDWHRI¿FLDOVPD\LQFOXGH
DFRS\RIDSURSRVHGRU¿QDODGYHUVHGHWHUPLQDWLRQOHWWHUWKH6HUYLFHLVVXHGWRWKHRUJDQL]DWLRQ
,Q DGGLWLRQ XSRQ UHTXHVW E\ WKH DSSURSULDWH VWDWH RI¿FLDO WKH 6HUYLFH PD\ PDNH DYDLODEOH IRU
inspection and copying, the exemption application and other information relating to the Service’s
determination on exempt status.
The Service does not consider the non-acceptance of an application under section 4.10 to be a
UHIXVDOWRUHFRJQL]HDQRUJDQL]DWLRQDVWD[H[HPSW

'LVFORVXUHWRVWDWHRI¿FLDOV
of information about §
501(c)(3) applicants

.7KH6HUYLFHPD\GLVFORVHWRVWDWHRI¿FLDOVWKHQDPHDGGUHVVDQGLGHQWL¿FDWLRQQXPEHURI
DQ\RUJDQL]DWLRQWKDWKDVDSSOLHGIRUUHFRJQLWLRQRIH[HPSWLRQXQGHU†F7KH6HUYLFH
GRHVQRWFRQVLGHUDQRUJDQL]DWLRQWKHDSSOLFDWLRQRIZKLFKLVQRWDFFHSWHGXQGHUVHFWLRQWR
have applied for recognition of exemption.

SECTION 14. WHAT
ARE THE USER FEE
REQUIREMENTS FOR
DETERMINATION
LETTERS?
Legislation authorizing user
fees

.01 Section 7528 directs the Secretary of the Treasury or delegate (Secretary) to establish a
program requiring the payment of user fees for requests to the Service for determination letters
and similar requests.
7KHIHHVFKDUJHGXQGHUWKHSURJUDPDUHWRYDU\DFFRUGLQJWRFDWHJRULHVRUVXEFDWHJRULHV
established by the Secretary; (2) are to be determined after taking into account the average time
IRUDQGGLI¿FXOW\RIFRPSO\LQJZLWKUHTXHVWVLQHDFKFDWHJRU\DQGVXEFDWHJRU\DQGDUHSD\able in advance.
Section 7528(b)(2) directs the Secretary to provide for exemptions and reduced fees under the
program as the Secretary determines to be appropriate, but the average fee applicable to each catHJRU\PXVWQRWEHOHVVWKDQWKHDPRXQWVSHFL¿HGLQ†E

Requests to which user fees
apply

.02 In general, user fees apply to all requests for determination letters described in this revenue
procedure.
Requests to which a user fee applies must be accompanied by the appropriate fee as determined
from the fee schedule provided in Appendix A of this revenue procedure. The fee may be refunded
in limited circumstances as set forth in section 14.09 of this revenue procedure.

January 2, 2020

272

Bulletin No. 2020–1

Requests and other actions
to which user fees do not
apply

.$FWLRQVZKLFKGRQRWUHTXLUHWKHSD\PHQWRIDXVHUIHHLQFOXGHWKHIROORZLQJ
(1) Elections pertaining to automatic extensions of time under Treas. Reg. § 301.9100-1; and
&RQ¿UPDWLRQRIH[HPSWLRQDI¿UPDWLRQOHWWHUWRUHSODFHORVWH[HPSWVWDWXVOHWWHUDQGWR
UHÀHFWQDPHDQGDGGUHVVFKDQJHV

Exemption from the user
fee requirements

.04 Departments, agencies, or instrumentalities of the United States that certify that they are
seeking a determination letter on behalf of a program or activity funded by Federal appropriations
are exempt from the user fee requirements. The fact that a user fee is not charged under § 7528 has
no bearing on whether an applicant is treated as an agency or instrumentality of the United States
for purposes of any other provision of the Code.
In addition, Canadian registered charities do not pay a user fee. See Appendix A.

Requests involving multiple
fee categories, issues, or
entities

.05
(1) Requests involving several fee categories. Requests submitted as part of an initial applicaWLRQHJIRXQGDWLRQFODVVL¿FDWLRQH[HPSWLRQIURP)RUP¿OLQJUHTXLUHPHQWVDUHFRQVLGHUHG
part of the initial application and aren’t subject to an additional user fee.
(2) Multiple requests on a single Form 8940. A separate Form 8940 and user fee are generally
UHTXLUHGIRUHDFKW\SHRIUHTXHVWIRUZKLFKDQRUJDQL]DWLRQKDVFKHFNHGDER[RQ)RUP
+RZHYHUWKHIROORZLQJVFHQDULRVDUHFRQVLGHUHGDVLQJOHUHTXHVW
D$UHTXHVWIRUUHFODVVL¿FDWLRQDVDSXEOLFFKDULW\XQGHU†DWKDWFKHFNVER[HVIDQG
g of Form 8940; or
(b) A request for advance approval of grant making procedures for a program described in both
§ 4945(g)(1) and (3) is considered a single request.
(3) Requests for separate determination letters for several entities. Each entity involved in
a request that desires a separate determination letter in its own name (for example, subordinate orJDQL]DWLRQVVHHNLQJFKDQJHRI¿OLQJUHTXLUHPHQWVPXVWSD\DVHSDUDWHIHH3D\PHQWRIDVHSDUDWH
fee is required regardless of whether the requests may be viewed as related.

Method of payment

.06
(1) Payment of user fees for applications of recognition of exemption on Form 1023-EZ.
User fees for applications for recognition of exemption on Form 1023-EZ must be paid through
www.pay.gov.
(2) Payment of user fees for all other requests. Except as provided in section 14.06(1), each
request to the Service for a determination letter must be accompanied by a check, payable to the
United States Treasury, in the appropriate amount. Taxpayers should not send cash.
The check may be converted to an electronic fund transfer. “Electronic fund transfer” is the
WHUPXVHGWRUHIHUWRWKHSURFHVVLQZKLFKWKH6HUYLFHHOHFWURQLFDOO\LQVWUXFWVWKH¿QDQFLDOLQVWLWX-

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273

January 2, 2020

tion holding the funds to transfer funds from the account named on the check to the U.S. Treasury
account, rather than processing the check. By sending a completed, signed check to the Service,
WKH6HUYLFHLVDXWKRUL]HGWRFRS\WKHFKHFNDQGWRXVHWKHDFFRXQWLQIRUPDWLRQIURPWKHFKHFNWR
make an electronic fund transfer from the account for the same amount as the check. If the elecWURQLFIXQGWUDQVIHUFDQQRWEHSURFHVVHGIRUWHFKQLFDOUHDVRQVWKH6HUYLFHLVDXWKRUL]HGWRSURFHVV
the copy of the check.
The electronic fund transfer from an account will usually occur within 24 hours, which is faster
WKDQDFKHFNLVQRUPDOO\SURFHVVHG7KHUHIRUHLWLVQHFHVVDU\WRHQVXUHWKHUHDUHVXI¿FLHQWIXQGV
available in the checking account when the check is sent to the Service. The check will not be
UHWXUQHGIURPWKH¿QDQFLDOLQVWLWXWLRQ
Transmittal forms

Effect of nonpayment
or payment of incorrect
amount

.07 Form 8718 is intended to be used as an attachment to applications other than Form 1023 or
Form 1023-EZ for the attachment of the applicable user fee check.
.,WZLOOEHWKHJHQHUDOSUDFWLFHRIWKH6HUYLFHWKDW
(1) An application for a determination letter containing the correct user fee will generally be
accepted for processing even if Form 8718 was not attached.
(2) If a check is for more than the correct amount, the submission will be accepted for processing and the amount of the excess payment will be returned to the requester.
(3) If a check is for less than the correct amount or no check is received, the submission will
not be accepted for processing and any user fee that was paid with the request will be returned or
refunded. See section 4.10 of this revenue procedure.

Refunds of user fees

.09 In general, the user fee will not be refunded unless the Service does not accept the request
for processing or declines to make a determination on all issues for which a determination letter
is requested.
(1) Examples in which the user fee will not EHUHIXQGHG
(a) The request for a determination letter is withdrawn at any time subsequent to its receipt by
the Service. For example, no fee will be refunded where the taxpayer has been advised that an
adverse ruling is contemplated and the taxpayer subsequently withdraws its submission.
(b) A determination letter is revoked in whole or in part. The fee paid at the time the original
determination letter was requested will not be refunded.
(c) The request contains several issues and the Service rules on some, but not all, of the issues.
The highest fee applicable to the issues on which the Service rules will not be refunded.
(2) The following situations are examples in which the user fee willEHUHIXQGHG
(a) The request is not accepted for processing under section 4.10 of this revenue procedure.

January 2, 2020

274

Bulletin No. 2020–1

(b) The Service declines to rule on the request in accordance with section 3.02 of this revenue
procedure.
Request for reconsideration
of user fee

SECTION 15.
MAILING ADDRESS
FOR REQUESTING
DETERMINATION
LETTERS

.10 A taxpayer that believes the user fee charged by the Service for its request for a determination letter is either not applicable or incorrect, and wishes to receive a refund of all or part of
the amount paid (see section 14.09 of this revenue procedure) may request reconsideration and, if
desired, the opportunity for an oral discussion by sending a letter to the Internal Revenue Service
DWWKHDSSOLFDEOH3RVW2I¿FH%R[RURWKHUDGGUHVVJLYHQLQVHFWLRQRIWKLVUHYHQXHSURFHGXUH
Both the incoming envelope and the letter requesting such reconsideration should be prominently
marked “USER FEE RECONSIDERATION REQUEST.” No user fee is required for these requests. The request should be marked for the attention of “Manager, EO Determinations Quality
Assurance.”
.01
7KHIROORZLQJW\SHVRIUHTXHVWVDQGDSSOLFDWLRQVKDQGOHGE\WKH(2'HWHUPLQDWLRQV2I¿FH
VKRXOGEHVHQWWRWKH,QWHUQDO5HYHQXH6HUYLFH&HQWHUDWWKHDGGUHVVLQVHFWLRQ
(a) applications for recognition of tax exemption on Form 1023, Form 1024, Form 1024-A, and
Form 1028;
(b) requests for determination letters submitted on Form 8940; and
(c) requests submitted by letter.
7KHDGGUHVVLV
Internal Revenue Service
P.O. Box 12192
TE/GE Stop 31A Team 105
&RYLQJWRQ.<
.02 Applications for recognition of exemption on Form 1023-EZ are handled by the EO DeterPLQDWLRQV2I¿FHEXWPXVWEHVXEPLWWHGHOHFWURQLFDOO\RQOLQHDWZZZSD\JRY3DSHUVXEPLVVLRQV
of Form 1023-EZ will not be accepted.
.03 Determinations and requests not subject to a user fee (including a Form 1023 that a Canadian registered charity as referenced in Appendix A submits in order to be listed in the Tax ExHPSW2UJDQL]DWLRQ6HDUFKGDWDEDVHIRURUJDQL]DWLRQVHOLJLEOHWRUHFHLYHWD[GHGXFWLEOHFKDULWDEOH
contributions (Pub. 78 data) or to determine public charity status) should be sent to the Internal
5HYHQXH6HUYLFHDWWKHDGGUHVVVKRZQEHORZ
Internal Revenue Service
P.O. Box 2508
Cincinnati, OH 45201

Bulletin No. 2020–1

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January 2, 2020

.04 Requests shipped by Express Mail or a delivery service for all of the above should be sent
WR
Internal Revenue Service
.HQWXFN\'ULYH7(*(
Mail Stop 31A Team 105
)ORUHQFH.<
SECTION 16. EFFECT
OF THIS REVENUE
PROCEDURE ON OTHER
DOCUMENTS

Rev. Proc. 2019-5 is superseded.

SECTION 17. EFFECTIVE
DATE

This Revenue Procedure is effective January 2, 2020.

SECTION 18.
PAPERWORK
REDUCTION ACT

The collections of information contained in this revenue procedure have been reviewed and
DSSURYHGE\WKH2I¿FHRI0DQDJHPHQWDQG%XGJHWLQDFFRUGDQFHZLWKWKH3DSHUZRUN5HGXFWLRQ
Act (44 U.S.C. § 3507) under multiple control numbers.
The collection of information on Forms 1023 and 1023-EZ have been reviewed and approved
under control number 1545-0056. The collection of information on Forms 1024 and 1024-A have
been reviewed and approved under control number 1545-0057. The collection of information on
Form 1028 has been reviewed and approved under control number 1545-0058. The collection of
LQIRUPDWLRQRQWKHVHIRUPVLVUHTXLUHGLIDQRUJDQL]DWLRQZDQWVWREHUHFRJQL]HGDVWD[H[HPSWE\
WKH6HUYLFH7KH6HUYLFHQHHGVWKHLQIRUPDWLRQWRGHWHUPLQHZKHWKHUWKHRUJDQL]DWLRQPHHWVWKH
legal requirements for tax-exempt status.
The collection of information for Form 8940 has been approved and reviewed under control
number 1545-2211. This information is required to evaluate and process the request for a determination letter.
The collection of information on Form 2848 has been reviewed and approved under control
QXPEHU,WLVXVHGWRDXWKRUL]HVRPHRQHWRDFWIRUWKHUHVSRQGHQWLQWD[PDWWHUV,W
grants all powers that the taxpayer has except signing a return and cashing refund checks. Data
LVXVHGWRLGHQWLI\UHSUHVHQWDWLYHVDQGWRHQVXUHWKDWFRQ¿GHQWLDOLQIRUPDWLRQLVQRWGLYXOJHGWR
XQDXWKRUL]HGSHUVRQV
The collection of information on Form 8718 has been reviewed and approved under control
number 1545-1798. The Omnibus Reconciliation Act of 1990 requires payment of a “user fee”
ZLWKHDFKDSSOLFDWLRQIRUDQH[HPSWRUJDQL]DWLRQGHWHUPLQDWLRQOHWWHU%HFDXVHRIWKLVUHTXLUHPHQWWKH)RUPZDVFUHDWHGWRSURYLGH¿OHUVWKHPHDQVWRHQFORVHWKHLUSD\PHQWDQGLQGLFDWH
what type of request they are making.
7KH FROOHFWLRQV RI LQIRUPDWLRQ DUH YROXQWDU\ WR REWDLQ D EHQH¿W7KH OLNHO\ UHVSRQGHQWV DUH
WD[H[HPSWRUJDQL]DWLRQVDQGWKHLUDXWKRUL]HGUHSUHVHQWDWLYHV
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 number.

January 2, 2020

276

Bulletin No. 2020–1

Books and records relating to the collection of information must be retained as long as their
contents may become material in the administration of any internal revenue law. Generally, tax
UHWXUQVDQGWD[UHWXUQLQIRUPDWLRQDUHFRQ¿GHQWLDODVUHTXLUHGE\†
DRAFTING
INFORMATION

Bulletin No. 2020–1

TKHSULQFLSDODXWKRURIWKLV5HYHQXH3URFHGXUHLV-XOLD3DUQHOORIWKH2I¿FHRI$VVRFLDWH&KLHI
&RXQVHO(PSOR\HH%HQH¿WV([HPSW2UJDQL]DWLRQVDQG(PSOR\PHQW7D[HV)RUDGGLWLRQDOLQformation, please contact Ms. Parnell at 202-317-4086 (not a toll-free call).

277

January 2, 2020

APPENDIX A
Schedule of User Fees
7KLVWDEOHVXPPDUL]HVWKHYDULRXVW\SHVRI([HPSW2UJDQL]DWLRQGHWHUPLQDWLRQOHWWHUXVHUIHHV
ISSUE
(1) Application for recognition of exemption under § 501(c)(3) submitted on Form 1023-EZ
$SSOLFDWLRQVIRUUHFRJQLWLRQRIH[HPSWLRQXQGHU†QRWLQFOXGHGLQRUXQGHU†IURPRUJDQL]DWLRQV
RWKHUWKDQSHQVLRQSUR¿WVKDULQJDQGVWRFNERQXVSODQVGHVFULEHGLQ†
(3) Group exemption letters
(a) Submissions postmarked prior to July 1, 2020
(b) Submissions postmarked on or after July 1, 2020
Note:$QDGGLWLRQDOXVHUIHHXQGHURUDERYHLVDOVRUHTXLUHGZKHQDFHQWUDORUJDQL]DWLRQVXEPLWVDQLQLWLDO
application for exemption with its request for a group exemption letter.
(4) Canadian registered charities
Note,QDFFRUGDQFHZLWKWKHLQFRPHWD[WUHDW\EHWZHHQWKH8QLWHG6WDWHVDQG&DQDGD&DQDGLDQUHJLVWHUHGFKDULWLHVDUHDXWRPDWLFDOO\UHFRJQL]HGDVH[HPSWXQGHU†FZLWKRXW¿OLQJDQDSSOLFDWLRQIRUH[HPSWLRQ)RU
details, see Notice 99-47, 1999-2 C.B. 391. Therefore, no user fee is required when a Canadian registered charity
VXEPLWVDOORUSDUWRID)RUPWREHOLVWHGLQ7D[([HPSW2UJDQL]DWLRQ6HDUFKGDWDEDVHIRURUJDQL]DWLRQVHOLgible to receive tax-deductible charitable contributions (Pub. 78 data), or for a determination on its private foundation status.
$I¿UPDWLRQ/HWWHU±&RQ¿UPDWLRQRIH[HPSWLRQWRUHSODFHORVWH[HPSWVWDWXVOHWWHUDQGWRUHÀHFWQDPHDQG
address changes)
5HFODVVL¿FDWLRQRISULYDWHIRXQGDWLRQVWDWXVLQFOXGLQJ
‡ RSHUDWLQJIRXQGDWLRQVWDWXVGHVFULEHGLQ†MDQGH[HPSWRSHUDWLQJIRXQGDWLRQVWDWXVGHscribed in § 4940(d);
‡ DGHWHUPLQDWLRQWKDWDSXEOLFFKDULW\LVGHVFULEHGLQ†DLLLRULLLLQFOXGLQJZKHWKHU
RUQRWD7\SH,,,VXSSRUWLQJRUJDQL]DWLRQLVIXQFWLRQDOO\LQWHJUDWHG
‡ UHFODVVL¿FDWLRQRIIRXQGDWLRQVWDWXVLQFOXGLQJYROXQWDU\UHTXHVWVIURPSXEOLFFKDULWLHVIRUSULYDWH
foundation status and voluntary requests from public charities, including requests from subordinate
RUJDQL]DWLRQVWRFKDQJHIURPRQHSXEOLFFKDULW\VWDWXVWRDQRWKHUSXEOLFFKDULW\VWDWXVRU
‡ ¿QDO SXEOLF FKDULW\ FODVVL¿FDWLRQ GHWHUPLQDWLRQ IRU RUJDQL]DWLRQV ZKRVH DGYDQFH UXOLQJ SHULRGV
expired prior to June 9, 2008 without providing the required information (Form 8940).
(a) Submissions postmarked prior to July 1, 2020
(b) Submissions postmarked on or after July 1, 2020
(7) Regulations § 301.9100 relief in connection with applications for recognition of exemption
6HFWLRQWHUPLQDWLRQV±DGYDQFHRU¿QDOUXOLQJXQGHU†E%)RUP
(a) Submissions postmarked prior to July 1, 2020
(b) Submissions postmarked on or after July 1, 2020
(9) Section 4942(g)(2) set asides – advance approval (Form 8940)
(a) Submissions postmarked prior to July 1, 2020
(b) Submissions postmarked on or after July 1, 2020
6HFWLRQDGYDQFHDSSURYDORIRUJDQL]DWLRQ
VJUDQWPDNLQJSURFHGXUHV)RUP
(a) Submissions postmarked prior to July 1, 2020
(b) Submissions postmarked on or after July 1, 2020
(11) Section 4945(f) advance approval of voter registration activities (Form 8940)
(a) Submissions postmarked prior to July 1, 2020
(b) Submissions postmarked on or after July 1, 2020

January 2, 2020

278

USER FEE
$275
$600
$2,000
$2,500

None

None

$400
$500
None
$400
$500
$2,000
$2,500
$2,000
$2,500
$2,000
$2,500

Bulletin No. 2020–1

6HFWLRQDQQXDOLQIRUPDWLRQUHWXUQ¿OLQJUHTXLUHPHQWVLQFOXGLQJDVXERUGLQDWHRUJDQL]DWLRQ¶VFKDQJHRI
¿OLQJUHTXLUHPHQWV)RUP
(a) Submissions postmarked prior to July 1, 2020
(b) Submissions postmarked on or after July 1, 2020
8QXVXDOJUDQWVWRFHUWDLQRUJDQL]DWLRQVXQGHU††E$YLDQGD)RUP
(a) Submissions postmarked prior to July 1, 2020
(b) Submissions postmarked on or after July 1, 2020
8VHU)HHIRUGHWHUPLQDWLRQOHWWHUVXQGHUWKHMXULVGLFWLRQRIWKH'HWHUPLQDWLRQV2I¿FHQRWRWKHUZLVHGHVFULEHG
or covered in this Appendix.
(a) Submissions postmarked prior to July 1, 2020
(b) Submissions postmarked on or after July 1, 2020

Bulletin No. 2020–1

279

$400
$500
$400
$500

$400
$500

January 2, 2020

APPENDIX B
Authorized Representatives
To sign a request for a determination letter or to appear before the Service in connection with the request, the representative must
EH
(a) An attorney who is a member in good standing of the bar of the highest court of any state, possession, territory, commonwealth, or the District of Columbia and who is not currently under suspension or disbarment from
SUDFWLFHEHIRUHWKH6HUYLFH+HRUVKHPXVW¿OHDZULWWHQGHFODUDWLRQZLWKWKH6HUYLFHRQ)RUPVKRZLQJ
FXUUHQWTXDOL¿FDWLRQDVDQDWWRUQH\DQGFXUUHQWDXWKRUL]DWLRQWRUHSUHVHQWWKHWD[SD\HU
&HUWL¿HGSXEOLF
E$FHUWL¿HGSXEOLFDFFRXQWDQWZKRLVTXDOL¿HGWRSUDFWLFHLQDQ\VWDWHSRVVHVVLRQWHUULWRU\FRPPRQZHDOWK
accountant
or the District of Columbia and who is not currently under suspension or disbarment from practice before the
6HUYLFH+HRUVKHPXVW¿OHDZULWWHQGHFODUDWLRQZLWKWKH6HUYLFHRQ)RUPVKRZLQJFXUUHQWTXDOL¿FDWLRQ
DVDFHUWL¿HGSXEOLFDFFRXQWDQWDQGFXUUHQWDXWKRUL]DWLRQWRUHSUHVHQWWKHWD[SD\HU
Enrolled agent
F$QHQUROOHGDJHQWRWKHUWKDQDQDWWRUQH\RUFHUWL¿HGSXEOLFDFFRXQWDQWWKDWLVFXUUHQWO\HQUROOHGWRSUDFWLFH
before the Service and is not currently under suspension or disbarment from practice before the Service, inFOXGLQJDSHUVRQHQUROOHGWRSUDFWLFHRQO\IRUHPSOR\HHSODQVPDWWHUV+HRUVKHPXVW¿OHDZULWWHQGHFODUDWLRQ
ZLWKWKH6HUYLFHRQ)RUPVKRZLQJFXUUHQWHQUROOPHQWDQGDXWKRUL]DWLRQWRUHSUHVHQWWKHWD[SD\HU(LWKHU
the enrollment number or the expiration date of the enrollment card must be included in the declaration. For the
rules on who may practice before the Service, see Treasury Department Circular No. 230.
A person with a
G$Q\RWKHUSHUVRQLQFOXGLQJDIRUHLJQUHSUHVHQWDWLYHZKRKDVUHFHLYHGD³/HWWHURI$XWKRUL]DWLRQ´IURP
“Letter of Authori- WKH'LUHFWRU2I¿FHRI3URIHVVLRQDO5HVSRQVLELOLW\XQGHUVHFWLRQGRI7UHDVXU\'HSDUWPHQW&LUFXODU1R
zation”
+HRUVKHPXVW¿OHDZULWWHQGHFODUDWLRQZLWKWKH6HUYLFHRQ)RUPRUHTXLYDOHQWSRZHURIDWWRUQH\
DQGGHFODUDWLRQRIUHSUHVHQWDWLYHVKRZLQJDXWKRUL]DWLRQWRUHSUHVHQWWKHWD[SD\HUZLWKDFRS\RIWKH³/HWWHU
RI$XWKRUL]DWLRQ´DWWDFKHG
$SHUVRQPD\PDNHDZULWWHQUHTXHVWIRUD³/HWWHURI$XWKRUL]DWLRQ´WR'LUHFWRU2I¿FHRI3URIHVVLRQDO5Hsponsibility, Internal Revenue Service, 1111 Constitution Avenue N.W., Washington, DC 20224. Circular No.
VHFWLRQG³6SHFLDODSSHDUDQFHV´DXWKRUL]HVWKH&RPPLVVLRQHURUGHOHJDWHWRDOORZDQLQGLYLGXDO
who is not otherwise eligible to practice before the Service to represent another person in a particular matter.
Employee, general (e) A regular full-time employee representing his or her employer, a general partner representing his or her
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RI¿FHUDGPLQLVWUD- receiver, guardian, personal representative, administrator, or executor representing a trust, receivership, guardtor, trustee, etc.
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ZULWWHQGHFODUDWLRQZLWKWKH6HUYLFHRQ)RUPVKRZLQJDXWKRUL]DWLRQWRUHSUHVHQWWKHWD[SD\HUSee Form
2848 for more information. A preparer of a return (other than a person referred to in paragraph (a), (b), or (c) of
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etc., or an individual representing his or her immediate family may not represent a taxpayer in connection with
a determination letter or a technical advice request. See section 10.7(c) of Treasury Department Circular No.
230.
Foreign represen- (f) A foreign representative (other than a person referred to in paragraph (a), (b), or (c) of this Appendix B) is
tative
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a request for a determination letter. In this situation, the nonresident alien or foreign entity must submit the
request for a determination letter on the individual’s or entity’s own behalf or through a person referred to in
paragraph (a), (b), or (c) of this Appendix B.
Attorney

January 2, 2020

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