Terminations

Organizations that have their own exemption letter are corporations, trusts or associations. Organizations included under a group ruling may receive charters from the central organization. This is common with many fraternal and veterans’ organizations.

When examining a subordinate that has a charter from the central organization, in lieu of or in addition to a certificate of incorporation, determine whether the charter has been rescinded/revoked by the central organization. Obtain a copy of the letter rescinding/revoking the charter of the subordinate entity.

When a central organization dissolves/terminates, is revoked, or relinquishes its exemption, then recognition on a group basis terminates. A subordinate may then file for a separate exemption letter by following the standard procedures in Rev. Proc. 2020-5 (updated annually) and submitting the appropriate application (e.g., Form 1023 including paying the user fee).