SEC. 2. ELIGIBLE ORGANIZATIONS

.01 Eligible Organizations. Except as provided in section 2.02, an organization is eligible for VCAP (an “eligible organization”) if it is:

(1) A college or university described in § 170(b)(1)(A)(ii) of the Code that is:

(a) Exempt from tax under § 501(a) of the Code as an organization described in § 501(c)(3); or

(b) An agency or instrumentality of any government or any political subdivision thereof, or that is owned or operated by a government or any political subdivision thereof, or by an agency or instrumentality of one or more governments or political subdivisions (a “State college or university”); or

2001–9 I.R.B. 739 February 26, 2001

(2) An organization described in § 501(c)(3) of the Code and exempt from income tax under § 501(a) that is affiliated with such a college or university.

An eligible organization may apply for VCAP with respect to any payments made to alien individuals.

.02 Organizations currently under examination . An organization is not eligible for VCAP if the organization is under examination on the date of the publication of this revenue procedure, or comes under examination prior to submitting the information required by section 4 of this revenue procedure. For this purpose, an examination is treated as commencing on the date the organization received notification from the Service of an impending examination or of an impending referral for examination. This program is also not available to any organization that has a case pending in Appeals or in litigation on issues involving taxes or withholding obligations described in section 3 of this revenue procedure.