Exempt Organization Applicants

In this section, “Exempt Organization” (EO) refers to an entity described in one of the following categories:

Organizations exempt from federal income tax under IRC 501(a) which are described in IRC 501(c), including but not limited to charitable, religious, or educational organizations described in IRC 501(c)(3), and corporations organized under Act of Congress which are instrumentalities of the United States described in IRC 501(c)(1);

Organizations exempt from federal income tax under IRC 521 and IRC 529;

The United States (federal government), states and their political subdivisions and integral parts, which are generally not subject to federal income tax under an implied statutory immunity;

Indian tribal governments and their political subdivisions, which are generally not subject to federal income tax under IRC 7871; and

An instrumentality affiliated with but a separate entity from a state or local government, which is not exempt from federal income tax under IRC 501(a)and described in IRC 501(c), but which has income excluded from gross income under IRC 115(1) because the entity’s income is derived from a public utility or the exercise of an essential governmental function, and accrues to a state, a political subdivision of a state, or the District of Columbia.

Generally, organizations exempt from federal income tax under IRC 501(a)which are described in IRC 501(c)(3) must apply to the IRS for a determination letter to have the IRS recognize their tax-exempt status.Most other organizations exempt from federal income tax under IRC 501(a) which are described in other paragraphs of IRC 501(c), such as organizations operated for social and recreational purposes under IRC 501(c)(7), may but are not required to apply to the IRS for a determination letter to be treated as tax-exempt if they meet the requirements for income tax exemption under the statute.

When an organization is recognized by the IRS as exempt, or when an organization that has not established its exemption with the IRS files an information return or Form 990-T, the organization’s data is added to master file via the Exempt Plan — Exempt Organization Application Control System (EACS) system. For more information on exempt organizations, see IRM 21.3.8.12, Exempt Organizations (EO).

States and their political subdivisions, integral parts thereof, and instrumentalities, are not required to apply for a determination letter or request a private letter ruling regarding their status, although some instrumentalities request private letter rulings that their income is excludable from gross income under IRC 115(1).

An Exempt Organization applicant must include a copy of the organization's determination letter, private letter ruling, revenue ruling, etc., when applicable and the Form 8802 requires completion of:

Applicant's Information

Applicant's TIN

Permanent Residence Address (when applicable)

Mailing Address (if other than applicant's address)

Entity Type

TIA (when applicable)

Tax Form filed

Requested certification year (the year the organization wants printed on the Form 6166)

Tax period

Certification Type and specify whether organized in the U.S.

Country and number of certifications requested

Penalties of Perjury statements (when applicable)

Form 8802 signed by a corporate officer or the corporation's POA and date.

Exempt organizations described in IRC 501(c)(1) are corporations organized under an Act of Congress that are:

Instrumentalities of the United States, and

Exempt from federal income tax

Exempt organizations described in IRC 501(c) (other than an organization described in IRC 501(c)(1)) and state colleges and universities must file Form 990-T if they have unrelated business taxable income of $1,000 or more in a taxable year. Most exempt organizations described in IRC 501(c) must file an annual information return (Form 990 or Form 990-EZ). However, some exempt organizations whose annual gross receipts are normally $50,000 or less can satisfy their annual reporting requirement by submitting instead, a notice (Form 990-N, or “e-Postcard”). Exempt organizations not required to file a Form 990, 990-EZ, or Form 990-N are listed in paragraph (11) below.

Exempt organizations described in IRC 501(c)(3) generally are nonprofit corporations, associations, or trusts, organized and operated exclusively for one or more of the following purposes:

Religious

Charitable

Scientific

Testing for public safety

Literary

Educational

Fostering national or international amateur sports competition (but only if no part of its activities involves the provision of athletic facilities or equipment)

Prevention of cruelty to children or animals