SECTION 5. STANDARDS

FOR ISSUING A DETERMINATION LETTER ON EXEMPT STATUS UNDER § 501(c)(3)

A Form 1023–EZ will not be considered completed if the organization’s name and EIN do not match the records in the Service’s Business Master File. Furthermore, a Form 1023–EZ submitted by an organization that is not an eligible organization will not be considered completed.

.06 Form 1023–EZ from an organization with a pending Form 1023.

(1) The Service will accept for processing a completed Form 1023–EZ from an eligible organization

that has a Form 1023 pending with the Service, provided that the Form 1023 has not yet been assigned for review. The Form 1023–EZ will be treated as a written request for withdrawal of the pending Form 1023, and the Form 1023 will be treated as withdrawn as described in section 6 of Rev. Proc. 2014–9. The user fee paid for the Form 1023 will generally not be refunded. See section 6 of Rev. Proc. 2014–9. In addition, the filing date of the Form 1023–EZ (not the withdrawn Form 1023) will be treated as the date that the organization provided the notice required under § 508 to the Service. If the filing date of the Form 1023–EZ is within 27 months from the end of the month in which it was organized, the organization may be recognized as exempt from the date it was organized. If it is not, then the organization’s exemption, if granted, will generally be effective from the date the Form 1023–EZ was filed. See section 8 below. (2) The Service will not accept for processing a completed Form 1023–EZ from an eligible organi zation that has a Form 1023 pending with the Service if the Form 1023 has already been assigned for review. If this section 4.06(2) applies, an organization will be notified of the non-acceptance of the Form 1023–EZ and any user fee that was paid with the Form 1023–EZ will be refunded, as described in section 5.02(3).

.07 No expedited handling. An organization may not request expedited handling of a Form 1023–EZ submitted under this revenue procedure.

.01 In general. This section sets forth procedures that the Service will use to process a Form 1023–EZ.

.02 Non-acceptance for processing of Forms 1023–EZ.

(1) A submitted Form 1023–EZ that is not completed within the meaning of section 4.05 will not be

accepted for processing by the Service. The Service may, but is not required to, request additional information under section 5.03 to verify that a Form 1023–EZ is completed. If an organization’s Form 1023–EZ is not accepted for processing, it will be notified of the non-acceptance of its application and any user fee that was paid will be refunded. An eligible organization may then submit a properly completed Form 1023–EZ with a new user fee online at www.pay.gov . Alternatively, an eligible organization may apply on a Form 1023 under the procedures described in Rev. Proc. 2014–9. (2) The Service will not accept for processing a Form 1023–EZ from an organization if the organi zation has an application for recognition of tax-exempt status other than a Form 1023 (e.g., Form 1024, Application for Recognition of Exemption under Section 501(a) ) pending with the Service. An organization will be notified of the non-acceptance of the Form 1023–EZ, and any user fee that was paid with the Form 1023–EZ will be refunded. (3) The Service will not accept for processing a Form 1023–EZ from an eligible organization if the

organization has a Form 1023 pending with the Service that has been assigned for review. See section 4.06. An organization will be notified of the non-acceptance of the Form 1023–EZ, and any user fee that was paid with the Form 1023–EZ will be refunded.

.03 Additional information may be required. The Service may request additional information from any organization before accepting a Form 1023–EZ for processing or making a determination of exempt status. Additionally, the Service will select a statistically valid random sample of Forms 1023–EZ for pre-determination reviews, which may also result in requests for additional information. If the Service requests information prior to accepting a Form 1023–EZ for processing and the organization fails to respond to a request for additional information, the application will not be accepted for processing. In the case of a Form 1023–EZ that has been accepted for processing by the Service, a failure to respond to a request for additional information will result in the closure of the application without a determination letter being issued and without a refund of the user fee.

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SECTION 6. DECLARATORY JUDGMENT PROVISIONS OF § 7428

.04 Issuance of determination letter. A favorable determination letter will be issued to an organization only if the attestations contained in the organization’s completed and accepted Form 1023–EZ (along with any additional information requested by the Service and provided by the organization) are consistent with requirements for exemption under section 501(c)(3). Exempt status may be recognized in advance of the organization’s operations. The determination letter will also classify the organization as either a “public charity” or a “private foundation,” consistent with the attestations made and any additional information provided by the organization upon request by the Service.

.05 Adverse determination letters and appeal procedure. If the Service concludes, including based on additional information provided under section 5.03, that the organization does not satisfy the requirements for exemption under § 501(c)(3), the Service generally will issue a proposed adverse determination letter, which will:

(1) include the Service’s rationale for the proposed denial of tax-exempt status; and (2) advise the organization of its opportunity to appeal the decision and request a conference.

An organization receiving a proposed adverse determination letter will be subject to the procedures described in section 7 of Rev. Proc. 2014–9. Upon issuance of a final adverse determination letter, an organization’s proposed adverse and final adverse determination letters are subject to disclosure to the public and state officials as described below in sections 7.02 and 7.03. An adverse determination letter issued under this section 5.05 is a final determination to which § 7428 applies. See section 6. Note, however, that the non-acceptance of a Form 1023–EZ under section 5.02 is not a proposed or final adverse determination.

.06 Requests for technical advice. EO Determinations is responsible for the issuance of determination letters to eligible organizations seeking recognition of exempt status under § 501(c)(3) pursuant to this revenue procedure. See Rev. Proc. 2014–4. However, technical advice on a Form 1023–EZ submitted and accepted for processing pursuant to this revenue procedure may be requested by EO Determinations or by an organization pursuant to the procedures described in section 5 of Rev. Proc. 2014–9 and sections 4.04 and 4.05 of Rev. Proc. 2014–5.

.07 Withdrawal of a Form 1023–EZ. A Form 1023–EZ may only be withdrawn upon the written request of an authorized individual prior to the issuance of a determination letter (including a proposed adverse determination letter).

(1) When a Form 1023–EZ is withdrawn, the Service will retain the application. The Service may

consider the information submitted in connection with the withdrawn request in a subsequent examination of the organization. (2) Generally, the user fee will not be refunded if an application is withdrawn. See Rev. Proc. 2014–8,

section 10.

.01 General description. Generally, a declaratory judgment proceeding under § 7428 can be filed in the United States Tax Court, the United States Court of Federal Claims, or the district court of the United States for the District of Columbia with respect to an actual controversy involving a determination by the Service or a failure of the Service to make a determination with respect to the initial or continuing qualification or classification of an organization under § 501(c)(3) (charitable, educational, etc.); § 170(c)(2) (deductibility of contributions); § 509(a) (private foundation status); § 4942(j)(3) (operating foundation status); or § 521 (farmers’ cooperative).

.02 Exhaustion of administrative remedies. Before filing a declaratory judgment action, an organization must exhaust its administrative remedies by taking, in a timely manner, all reasonable steps to secure a determination from the Service. For purposes of this revenue procedure, these reasonable steps include:

(1) the filing by an organization of a completed Form 1023–EZ (within the meaning of section 4.05); (2) in appropriate cases (i.e., where the organization did not submit Form 1023–EZ within 27 months

after the end of the month in which it was organized and seeks an effective date earlier than its submission date), requesting relief pursuant to Treas. Reg. § 301.9100–1 of the Procedure and

July 21, 2014 234 Bulletin No. 2014–30