SEC. 4. APPLICATION

.01 Exempt Organizations Automati- cally Excepted Under Section 6033(e)(3). Organizations recognized by the Service as exempt from taxation under § 501(a), other than (i) social welfare organizations described in § 501(c)(4) that are not veterans organizations, (ii) agricultural and horticultural organizations described in § 501(c)(5), and (iii) organizations described in § 501(c)(6), are treated as satisfying the requirements of § 6033(e)(3).

.02 Section 501(c)(4) Social Welfare Organizations and Section 501(c)(5) Agricultural and Horticultural Organiza- tions. Social welfare organizations recognized by the Service as exempt from taxation under § 501(c)(4) and agricultural and horticultural organizations recognized by the Service as exempt from taxation under § 501(c)(5) are treated as satisfying the requirements of § 6033(e)(3) if either (i) more than 90 percent of all annual dues (or similar amounts) are received from persons, families, or entities who each pay annual dues (or similar amounts) of $75 or less, or (ii) more than 90 percent of all annual dues (or similar amounts) are received from organizations described in § 501(c)(3), state governments, local governments, entities whose

26 CFR 601.105: Examination of returns and claims for refund, credit, or abatement; determination of correct tax liability. (Also §§ 162, 501, and 6033)

Rev. Proc. 98–19