SECTION 2. BACKGROUND

.01 Section 6033(a)(1) generally requires the filing of an annual return by exempt organizations.

.02 Section 6033(a)(3)(A) provides certain mandatory exceptions to the annual filing requirement for exempt organizations.

.03 Section 6033(a)(3)(B) provides that the Secretary may relieve exempt organizations from the annual filing requirement if the Secretary determines that such filings are not necessary to the efficient administration of the internal revenue laws. Treas. Reg. § 1.6033–2(g)(6) delegates such discretionary authority to the Commissioner. See Treas. Reg. §1.6033–2(g)(1) for a partial list of organizations that are not required to file annual

returns either because they are excepted by statute or because the Commissioner has exercised this authority.

.04 The Pension Protection Act of 2006, Public Law 109–280 (120 Stat. 780) (PPA), amended § 6033(a)(3)(B) to remove the Secretary’s authority to relieve organizations described in § 509(a)(3) (supporting organizations) from filing an annual information return.

.05 Under the authority of § 6033(a)(3)(B), Rev. Proc. 83–23, 1983–1 C.B. 687, relieves from the Form 990 filing requirement organizations described in § 501(c) (other than private foundations) whose annual gross receipts are normally not more than $25,000.

.06 For purposes of this revenue procedure, the term “private foundation” includes any domestic or foreign organization described in § 501(c)(3) that is not described in § 509(a)(1) through (4).

.07 Under the authority of § 6033(a)(3)(B), Rev. Proc. 94–17, 1994–1 C.B. 579, relieves from the Form 990 filing requirement foreign organizations (other than private foundations) whose annual gross receipts are normally not more than $25,000 from sources within the United States and that have no significant activity in the United States.

.08 Under the authority of § 6033(a)(3)(B), Rev. Proc. 2003–21, 2003–1 C.B. 448, relieves from the Form 990 filing requirement U.S. possession organizations (other than private foundations) whose annual gross receipts are normally not more than $25,000 from sources within the United States and that have no significant activity in the United States.

.09 Treas. Reg. § 53.4948–1(b) provides that gifts, grants, contributions or membership fees received directly or indirectly by a foreign organization from a United States person, as defined in § 7701(a)(30), are from sources within the United States. For purposes of this revenue procedure, the source of an organization’s gross receipts from gifts, grants, contributions or membership fees is determined by applying Treas. Reg. § 53.4948–1(b).

.10 For purposes of applying the rules in this revenue procedure regarding possession organizations, a United States person does not include individuals who are

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nual returns filed for tax years beginning on or after January 1, 2010.