SECTION 8. EFFECT OF

DETERMINATION LETTER RECOGNIZING EXEMPTION

.02 Disclosure of adverse determinations. The Service is required to make adverse determination letters available for public inspection under § 6110 after the deletion of names, addresses, and other identifying information. Upon issuance of a final adverse determination letter to an eligible organization pursuant to section 5.05, both the proposed adverse determination letter and the final adverse determination letter will be available for public inspection in accordance with section 8.02 of Rev. Proc. 2014–9.

.03 Disclosure to state officials.

(1) The Service may disclose to State officials the name, address, and EIN of any organization that has

applied for recognition of exemption under § 501(c)(3), including an organization that applies using Form 1023–EZ under this revenue procedure. (2) The Service may notify the appropriate State officials of a refusal to recognize an organization as

tax-exempt under § 501(c)(3). See § 6104(c). The Service does not consider the non-acceptance of an application under section 5.02 to be a refusal. See section 8.03 of Rev. Proc. 2014–9, for more information about disclosure in cases where the Service refuses to recognize an organization as exempt under § 501(c)(3).

.01 Effective date of exemption . A determination letter recognizing exemption of an organization described in § 501(c)(3) is usually effective as of the date of formation of an organization if: (1) its purposes and activities prior to the date of the determination letter have been consistent with the requirements for exemption; (2) it has not failed to file required Form 990 series returns or notices for three consecutive years; and (3) it has submitted an application for recognition of exemption within 27 months from the end of the month in which it was organized. Special rules may apply to certain organizations applying for exemption under § 501(c)(3). See § 508, and Treas. Reg. §§ 1.508–1(a)(2), 1.508–1(b)(7), and 301.9100–2(a)(2)(iv).

(1) If the Service requires the organization to alter its activities or make substantive amendments to its

enabling instrument, the exemption will be effective as of the date specified in the determination letter. (2) If an eligible organization has submitted a Form 1023–EZ within 27 months from the end of the

month in which it was organized and the Service requires the organization to make a nonsubstantive amendment, exemption will ordinarily be recognized as of the date of formation. Examples of nonsubstantive amendments include correction of a clerical error in the enabling instrument or the addition of a dissolution clause where the activities of the organization prior to the determination letter are consistent with the requirements for exemption. (3) An eligible organization applying under this revenue procedure that does not submit Form

1023–EZ within 27 months from the end of the month in which it was organized will generally be recognized as exempt from the submission date of its Form 1023–EZ. For this purpose, the submission date of Form 1023–EZ is determined without regard to the submission date of any previously submitted application for recognition of tax-exemption (including a Form 1023–EZ, Form 1023, or Form 1024) that has been withdrawn by the organization or not accepted for processing by the Service. Thus, if an eligible organization that has a Form 1023 pending with the Service files a Form 1023–EZ in accordance with section 4.06 outside the 27-month window, it will generally be recognized as exempt from the submission date of its Form 1023–EZ, not from the date it submitted its Form 1023. An organization that believes it qualifies for an earlier effective date may request the earlier date by sending correspondence to the address listed in the Instructions for Form 1023–EZ . The correspondence should include the organization’s name, EIN, the effective date the organization is requesting, an explanation of why the earlier date is warranted, and any supporting documents. This correspondence should be sent after the organization receives its determination letter. Alternatively, the organization may complete Form 1023 instead of completing Form 1023–EZ.

.02 Reliance on determination letter. A determination letter recognizing exemption may not be relied upon if there is a material change, inconsistent with exemption, in the character, the purpose, or the method of operation of the organization, or a change in the applicable law. Also, a determination letter issued to an organization that submitted a Form 1023–EZ in accordance with this revenue procedure may not be relied upon if it was based on any inaccurate material information submitted by the

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SECTION 9. REVOCATION OR MODIFICATION OF DETERMINATION LETTER RECOGNIZING EXEMPTION

organization. Inaccurate material information includes an incorrect attestation as to the organization’s organizational documents, the organization’s exempt purposes, the organization’s conduct of prohibited and restricted activities, or the organization’s eligibility to file Form 1023–EZ. See also section 9.

.03 Automatic revocation. Organizations that claim exempt status under § 501(c) generally must file annual Form 990 series returns or notices, even if they have not yet received their determination letter recognizing exemption. If an organization fails to file required Form 990 series returns or notices for three consecutive years, its exemption will be automatically revoked by operation of § 6033(j). Such an organization may apply for reinstatement of its exempt status, and such recognition may be granted retroactively, as provided in Rev. Proc. 2014–11. Consistent with the eligibility requirements for using Form 1023–EZ that are set forth in section 2.01, only an organization requesting reinstatement of § 501(c)(3) status under section 4 (streamlined retroactive reinstatement of tax-exempt status for small organizations within 15 months of revocation) or section 7 (reinstatement of tax-exempt status from postmark date) of Rev. Proc. 2014–11 may apply using Form 1023–EZ. An organization requesting reinstatement of § 501(c)(3) status under section 5 (retroactive reinstatement of tax-exempt status within 15 months of revocation) or section 6 (retroactive reinstatement more than 15 months after revocation) of Rev. Proc. 2014–11 must apply using Form 1023 under Rev. Proc. 2014–9.

.04 Filing requirement. Generally, an organization that qualifies for exemption under § 501(c)(3) is required to file an annual return in accordance with § 6033(a). However, an eligible organization, other than a private foundation, that normally has gross receipts of $50,000 or less is not required to file an annual return, but must furnish notice on Form 990–N providing the information required by § 6033(i). See Rev. Proc. 2011–15, 2011–3 I.R.B. 322. An eligible organization (other than a private foundation) that applies for recognition of exempt status under this revenue procedure is not required to separately notify the Service that it is excepted from the annual filing requirement under § 6033(a) if it is claiming a filing exemption solely on the basis that its gross receipts are normally $50,000 or less. However, if such an organization claims an exception from filing an annual return under § 6033(a) on a basis other than it being an organization (other than a private foundation) that normally has gross receipts of $50,000 or less, it must file a Form 8940, Request for Miscellaneous Determi- nation, with the Service and provide a statement of all of the facts on which its claim is based. A separate user fee will be required when filing the Form 8940.

.01 In general. A determination letter recognizing exemption may be revoked or modified: (1) by a notice to the taxpayer to whom the determination letter was issued; (2) by enactment of legislation or ratification of a tax treaty; (3) by a decision of the Supreme Court of the United States; (4) by the issuance of temporary or final regulations; (5) by the issuance of a revenue ruling, revenue procedure, or other statement published in the Internal Revenue Bulletin; or (6) automatically, pursuant to § 6033(j), for failure to file a required annual return or notice for three consecutive years.

.02 Retroactive revocation or modification. The revocation or modification of a determination letter recognizing the exemption of an organization that submitted a Form 1023–EZ in accordance with this revenue procedure may be retroactive if there has been a change in the applicable law, if the organization operated in a manner materially different from that represented on its completed Form 1023–EZ (including any additional information provided), or if the organization misstated or omitted any material information on its completed Form 1023–EZ (including any additional information provided). A misstatement of material information includes an incorrect attestation as to the organization’s organizational documents, the organization’s exempt purposes, the organization’s conduct of prohibited and restricted activities, or the organization’s eligibility to file Form 1023–EZ. Information provided on an application for recognition of exemption (e.g., Form 1023–EZ, Form 1023, or Form 1024) that has been withdrawn will not be considered for purposes of limiting the retroactive effect of a revocation or modification of a determination letter. In certain cases an organization may seek relief from retroactive revocation or modification of a determination letter under § 7805(b). Requests for § 7805(b) relief may be made as described in section 12 of Rev. Proc. 2014–9 and Rev. Proc. 2014–4.

.03 Appeal and conference procedures. In the case of a revocation or modification of a determination letter, the appeal and conference procedures are the same as those set out in section 12 of Rev. Proc. 2014–9.

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