Note:

A copy of the church directory alone is not proof of exemption from taxation or filing. It must be accompanied by a determination letter.

The following chart should be helpful when manually verifying an Exempt Organization's exempt status and determining its eligibility for certification.

If

Then

1. The applicant has an employment code F - indicating FEDERAL EMPLOYER and meets the requirements in paragraph 15 or 16

Issue the 990 FEDERAL or 5500 paragraph. Not required to file information returns.

2. The applicant has an employment code G - indicating STATE GOVERNMENT and meets the requirements in paragraph 15 or 16

Issue the 990 STATE or 5500 paragraph. Not required to file.

3. The applicant has an employment code I - indicating INDIAN TRIBE and meets the requirements in paragraph 17 or 18

Issue the 990 INDIAN TRIBE or 5500 paragraph. Not required to file.

4. The applicant has an employment code T- indicating STATE OR LOCAL agency that has entered into a 218 agreement with SSA.

Issue the 990 STATE. See paragraph (15) above. Not required to file.

5. The applicant has an employment code W- indicating 501(c)(3) and meets the requirements in paragraph 19 - 23 and 25

Issue the 501(c)(3) paragraph. May be required to file Form 990; may file Form 990-T.

6. The Applicant has a 990-06 filing requirement - indicating a church and meets the requirements in paragraphs 19 - 23 and 25

Issue 501(c)(3) paragraph. Not required to file Form 990; may file Form 990-T.

7. The Applicant has a 990T-2 filing requirement - indicating an IRC 401(a) Pension Trust

Issue 5500 paragraph. Not required to file.

8. The Applicant has a 990-13 filing requirement - indicating a religious organization and meets the requirements in paragraphs 19 - 23 and 25

Issue the 501(c)(3) paragraph. Not required to file Form 990; may file Form 990-T.

9. The Applicant has a 990-14 filing requirement - indicating an affiliate of a government unit and meets the requirements in paragraphs 19 - 25

Issue the IRC 501(c)(3) paragraph (or IRC 501(c) paragraph, if applicable).

10. The following are valid status codes 1, 2, 6, 7, 11, 30, and 31 WITH subsection codes 1, 2, 4-29; if applicant meets the requirements in paragraphs 19 - 25

Check for the posting of a TC 150. When return posted, issue certification using the applicable IRC 501(c) paragraph, otherwise correspond using letter 3444.

11. Status codes 1 or 2, WITH subsection code 3, 50, 60, 70, or 71

Check for the posting of a TC 150. When return posted, issue certification using the IRC 501(c)(3) paragraph, otherwise correspond using letter 3444.

12. The applicant files a 990–PF

The MFT is 44.

13. The applicant files a 990, 990-EZ, 990-N

The MFT is 67.

14. The applicant files a 990–T

The MFT is 34.

An organization whose entity record does not have one of the valid exemption status codes, but states that it is exempt under a Group Exemption Number (GEN), must be validated as an exempt organization. The entity record of subordinate organizations in a group exemption must have the same GEN as the central/parent organization and you must be able to validate that the central is an exempt organization using the EO procedures identified above. Central organizations should have Status Code 01 because they must receive recognition of exemption from the IRS.

When the central organization has a valid group exemption status, has filed the proper return when required and both the central and organization have the same GEN, you can issue certification to the organization.

When the central organization has a valid group exemption status, has filed the proper return when required, but the organization applying for certification does not have a GEN or its GEN isn't the same as the validated central, you must deny certification.

Advise an organization claiming to be a subordinate of an exempt organization that does not have a GEN, that we cannot certify it unless the central organization has it added as a subordinate to its group exemption or can prove it is a recognized subordinate of the central organization.