SECTION 5. STANDARDS FOR

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

.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. 2015–9. (2) The Service will not accept for processing a Form 1023–EZ from an organization if the organization 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.

Sec. 5.02 Bulletin No. 2015–1 189 January 2, 2015

.03 Additional information may be re- quired. 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.

.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.

If an organization fails to submit a timely appeal of a proposed adverse determination letter or if an appeal is sub

mitted to the Appeals Office and the Appeals Office agrees with the adverse determination, a final adverse determination letter will be issued to the organization. The procedures described in section 7 of Rev. Proc. 2015–9 will apply to an organization receiving a proposed or final adverse determination letter. 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. A final 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. 2015–4. 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. 2015–9.

.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. 2015–8, section 10.