SECTION 7. UNDER

WHAT CIRCUMSTANCES DOES EMPLOYEE PLANS OR EXEMPT ORGANIZATIONS DETERMINATIONS ISSUE DETERMINATION LETTERS?

Circumstances under which determination letters are issued

Employee Plans Rulings and Agreements, however, may issue letter rulings to groups or associations on their own tax status or liability if the request meets the requirements of this revenue procedure.

.08 Employee Plans Rulings and Agreements does not issue letter rulings to foreign governments or their political subdivisions about the U.S. tax effects of their laws. However, Employee Plans Rulings and Agreements may issue letter rulings to foreign governments or their political subdivisions on their own tax status or liability under U.S. law if the request meets the requirements of this revenue procedure.

.09 Employee Plans Rulings and Agreements does not issue letter rulings on a matter involving the federal tax consequences of any proposed federal, state, local, municipal, or foreign legislation.

.01 Employee Plans or Exempt Organizations Determinations issues determination letters only if the question presented is specifically answered by a statute, tax treaty, or regulation, or by a conclusion stated in a revenue ruling, opinion, or court decision published in the Internal Revenue Bulletin. In limited situations, the determination letter will be issued by Exempt Organizations Rulings and Agreements. See section 3.04 of this revenue procedure.

In general .02 In employee plans matters, the Employee Plans Determinations office issues determination letters in response to taxpayers’ written requests on completed transactions. However, see section 13.09 of this revenue procedure. A determination letter usually is not issued for a question concerning a return to be filed by the taxpayer if the same question is involved in a return under examination.

In situations involving continuing transactions, Employee Plans Rulings and Agreements or the Office of Associate Chief Counsel would issue a ruling covering future tax periods and periods for which a return had not yet been filed.

Employee Plans Determinations and Exempt Organizations Determinations do not issue determination letters on the tax consequences of proposed transactions, except as provided in sections 7.03 and 7.04 below.

Neither Employee Plans Determinations nor any other office issues determination letters on plans under § 403(b). However, for information regarding the procedures for obtaining opinion and advisory letters for prototype plans and volume submitter plans under § 403(b), see section 5.02 of this revenue procedure.

Under no circumstances will Employee Plans Determinations issue a determination letter unless it is clearly shown that the request concerns a return that has been filed or is required to be filed.

Sec. 7.02 Bulletin No. 2016–1 153 January 4, 2016

In employee plans matters .03 In employee plans matters, the Employee Plans Determinations office issues determination letters on the qualified status of employee plans under §§ 401, 403(a), 409 and 4975(e)(7), and the exempt status of any related trust under § 501. See Rev. Proc. 2016–6, this Bulletin.

In exempt organizations matters

.04 In exempt organizations matters, the Exempt Organizations Determinations office issues determination letters involving:

(1) Initial qualification for exempt status of organizations described in §§ 501 and 521 to the extent provided in Rev. Proc. 2016–5, this Bulletin (including reinstatement of organizations that have been automatically revoked pursuant to § 6033(j) and subordinate organizations included in a group exemption letter that have been revoked pursuant to that provision);

(2) Updated exempt status letter to reflect changes to an organization’s name or address, or to replace a lost exempt status letter, but not to approve or disapprove any completed transaction or the effect of changes in activities on exempt status, except in the situations specifically listed in paragraphs (3) through (14) below;

(3) Classification of private foundation status as provided in 2016–10, the next Bulletin;

(4) Reclassification of private foundation status, including operating foundation status described in § 4942(j)(3) and exempt operating foundation status described in § 4940(d), as provided in Rev. Proc. 2016–10, the next Bulletin;

(5) Recognition of unusual grants to certain organizations under §§ 170(b)(1)(A)(vi) and 509(a)(2);

(6) Requests for relief under § 301.9100–1 of the Procedure and Administration Regulations in connection with applications for recognition of exemption;

(7) Terminations of private foundation status under § 507(b)(1)(B);

(8) Request for a determination that a public charity described in § 509(a)(3) is described in § 509(a)(3)(i), (ii), or (iii), including whether or not a Type III supporting organization is functionally integrated. See Rev. Proc. 2016–10, the next Bulletin;

(9) Advance approval of certain set-asides described in § 4942(g)(2);

(10) Advance approval under § 4945(g) of organizations’ grant making procedures;

(11) Advance approval of voter registration activities described in § 4945(f);

(12) Whether an organization is exempt from filing annual information returns under § 6033 as provided in Treas. Reg. § 1.6033–2(g)(1) and Rev. Procs. 95–48, 1995–2 C.B. 418, and 96–10, 1996–1 C.B. 577 (an organization that claims exemption from filing but is not on record with the Service as having established such exemption, by way of a determination letter under this section 7.04(12) or otherwise, may have its tax exempt status or determination letter revoked pursuant to § 6033(j) if it fails to file annual information returns);

Sec. 7.04 January 4, 2016 154 Bulletin No. 2016–1

Circumstances under which determination letters are not issued

Requests involving returns already filed

Attach a copy of determination letter to taxpayer’s return

Review of determination letters

(13) Determination of foundation status under § 509(a)(3) of non-exempt charitable trusts described in § 4947(a)(1), as provided in Rev. Proc. 2016–10, next Bulletin; and

(14) Government entity voluntary termination of § 501(c)(3) recognition (must include documentation of tax-exempt status other than under § 501(a)).

In limited situations, the determination letter will be issued by Exempt Organizations Rulings and Agreements. See section 3.04 of this revenue procedure.

.05 Employee Plans or Exempt Organizations Determinations will ordinarily not issue a determination letter in response to any request if—

(1) it appears that the taxpayer has directed a similar inquiry to the Office of Associate Chief Counsel;

(2) the same issue involving the same taxpayer or a related taxpayer is pending in a case in litigation or before an Appeals Office;

(3) the determination letter is requested by an industry, trade association, or similar group on behalf of individual taxpayers within the group (other than subordinate organizations covered by a group exemption letter); or

(4) the request involves an industry-wide problem.

.06 A request received by the Service on a question concerning a return that is under examination will be, in general, considered in connection with the examination of the return. If a response is made to the request before the return is examined, it will be considered a tentative finding in any later examination of that return.

.07 A taxpayer who, before filing a return, receives a determination letter about any transaction that has been consummated and that is relevant to the return being filed should attach a copy of the determination letter to the return when it is filed.

.08 Determination letters issued under sections 7.02 through 7.04 of this revenue procedure are not generally reviewed by any other office of Employee Plans or Exempt Organizations before they are issued. If a taxpayer believes that a determination letter of this type is in error, the taxpayer may ask Employee Plans or Exempt Organizations Determinations to reconsider the matter or to request technical advice from the Office of Associate Chief Counsel as explained in Rev. Proc. 2016–2, this Bulletin.

(1) In employee plans matters, the procedures for review of determination letters relating to the qualification of employee plans involving §§ 401 and 403(a) are provided in Rev. Proc. 2016–6, this Bulletin.

(2) In exempt organizations matters, the procedures for the review of determination letters relating to the exemption from federal income tax of certain organizations under §§ 501 and 521 are provided in Rev. Proc. 2016–5, this Bulletin.

Sec. 7.08 Bulletin No. 2016–1 155 January 4, 2016