SECTION 4. PROCEDURE

.01 A United States possession organization (other than a private foundation) oth

erwise required to file Form 990 will be relieved from the filing requirement for any year in which it meets the following conditions:

(1) it normally does not receive more than $25,000 in gross receipts annually, as defined in section 5 of Rev. Proc. 83–23, from: (i) gifts, grants, contributions and membership fees received directly or indirectly from a United States person as defined in section 7701(a)(30) of the Code; for purposes of this provision a United States person does not include individuals who are bona fide residents of a United States possession; and (ii) other gross receipts from sources in the United States as determined under rules provided in sections 861 through 865 of the Code and the regulations thereunder; and

(2) it has no significant activity in the United States, as “United States” is defined in section 7701(a)(9) of the Code. For these purposes, the term “activity” includes lobbying and political activity and the operation of a trade or business, but does not include investment activity.

.02 If at any time an organization ceases to meet one or both of the conditions de

2003–6 I.R.B. 449 February 10, 2003