SECTION 16. EFFECT — Internal Revenue Bulletin 2018-1

OF THIS REVENUE PROCEDURE ON OTHER DOCUMENTS

SECTION 17. EFFECTIVE DATE

SECTION 18. PAPERWORK REDUCTION ACT

Attention: EO Determination Letters

Stop 31

201 West Rivercenter Boulevard

Covington, KY 41011

Rev. Proc. 2017–5 is superseded.

This Revenue Procedure is effective January 2, 2018.

The collections of information contained in this revenue procedure have been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. § 3507) under multiple control numbers.

The collection of information on Forms 1023 and 1023-EZ have been reviewed and approved under control number 1545-0056. The collection of information on Form 1024 has been reviewed and approved under control number 1545-0057. The collection of information on Form 1028 has been reviewed and approved under control number 1545-0058. The collection of information on these forms is required if an organization wants to be recognized as tax-exempt by the Service. The Service needs the information to determine whether the organization meets the legal requirements for tax-exempt status.

The collection of information for Form 8940 has been approved and reviewed under control number 1545-2211. This information is required to evaluate and process the request for a determination letter.

The collection of information on Form 2848 has been reviewed and approved under control number 1545-0150. It is used to authorize someone to act for the respondent in tax matters. It grants all powers that the taxpayer has except signing a return and cashing refund checks. Data is used to identify representatives and to ensure that confidential information is not divulged to unauthorized persons.

The collection of information on Form 8718 has been reviewed and approved under control number 1545-1798. The Omnibus Reconciliation Act of 1990 requires payment of a “user fee” with each application for an exempt organization determination letter. Because of this requirement, the Form 8718 was created to provide filers the means to enclose their payment and indicate what type of request they are making.

The collections of information are voluntary, to obtain a benefit. The likely respondents are tax-exempt organizations and their authorized representatives.

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB number.

Books and records relating to the collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by § 6103.

January 2, 2018 268 Bulletin No. 2018–1

DRAFTING INFORMATION

The principal author of this Revenue Procedure is La Vonne Fischer of the Office of Associate Chief Counsel (Tax Exempt and Government Entities). For additional information, please contact Ms. Fischer at 202-317-5800.

APPENDIX A

Schedule of User Fees

This table summarizes the various types of Exempt Organization determination letter user fees.

ISSUE USER FEE

(1) Application for recognition of exemption under § 501(c)(3) submitted on Form 1023-EZ $275

(2) Applications for recognition of exemption under § 501 not included in (1) or under § 521 $600 from organizations (other than pension, profit-sharing, and stock bonus plans described in § 401).

(3) Group exemption letters

Note: An additional user fee under (1), (2), or (3), above is also required when a central organization submits an initial application for exemption with its request for a group exemption letter.

(4) Canadian registered charities

Note : In accordance with the income tax treaty between the United States and Canada, Canadian registered charities are automatically recognized as exempt under § 501(c)(3) without filing an application for exemption. For details, see Notice 99–47, 1999–2 C.B. 391. Therefore, no user fee is required when a Canadian registered charity submits all or part of a Form 1023 or other written request to be listed in Exempt Organizations Select Check database for organizations eligible to receive taxdeductible charitable contributions (Pub. 78 data), or for a determination on its private foundation status.

(5) Affirmation Letter - Confirmation of exemption (to replace lost exempt status letter, and to reflect name and address changes)

(6) Reclassification of private foundation status, including

operating foundation status described in § 4942(j)(3) and exempt operating foundation

status described in § 4940(d);

a determination that a public charity is described in § 509(a)(3)(i), (ii), or (iii), including

whether or not a Type III supporting organization is functionally integrated;

reclassification of foundation status, including voluntary requests from public charities

for private foundation status and voluntary requests from public charities, including requests from subordinate organizations, to change from one public charity status to another public charity status; or

final public charity classification determination for organizations whose advance ruling

periods expired prior to June 9, 2008 without providing the required information (Form 8940).

$2,000

None

$400

(7) Regulations § 301.9100 relief in connection with applications for recognition of exemption None

(8) Section 507 terminations – advance or final ruling under § 507(b)(1)(B) (Form 8940) $400

(9) Section 4942(g)(2) set asides – advance approval (Form 8940) $1,000

(10) Section 4945 advance approval of organization’s grant making procedures (Form 8940) $1,000

(11) Section 4945(f) advance approval of voter registration activities (Form 8940) $1,000

(12) Section 6033 annual information return filing requirements (including a subordinate organization’s $400 change of filing requirements) (Form 8940)

(13) Unusual grants to certain organizations under §§ 170(b)(1)(A)(vi) and 509(a)(2) (Form 8940) $400

(14) User Fee for determination letters under the jurisdiction of the Determinations Office not other- $400 wise described or covered in this Appendix.

Bulletin No. 2018–1 269 January 2, 2018

APPENDIX B

Authorized Representatives

To sign a request for a determination letter or to appear before the Service in connection with the request, the representative must be:

Attorney (a) An attorney who is a member in good standing of the bar of the highest court of any state, possession, territory, commonwealth, or the District of Columbia and who is not currently under suspension or disbarment from practice before the Service. He or she must file a written declaration with the Service on Form 2848 showing current qualification as an attorney and current authorization to represent the taxpayer.

Certified public (b) A certified public accountant who is qualified to practice in any state, possession, territory, comaccountant monwealth, or the District of Columbia and who is not currently under suspension or disbarment from

practice before the Service. He or she must file a written declaration with the Service on Form 2848 showing current qualification as a certified public accountant and current authorization to represent the taxpayer.

Enrolled agent (c) An enrolled agent, other than an attorney or certified public accountant, that is currently enrolled to practice before the Service and is not currently under suspension or disbarment from practice before the Service, including a person enrolled to practice only for employee plans matters. He or she must file a written declaration with the Service on Form 2848 showing current enrollment and authorization to represent the taxpayer. Either the enrollment number or the expiration date of the enrollment card must be included in the declaration. For the rules on who may practice before the Service, see Treasury Department Circular No. 230.

A person with a (d) Any other person, including a foreign representative, who has received a “Letter of Authorization” “Letter of from the Director, Office of Professional Responsibility under section 10.7(d) of Treasury Department Authorization” Circular No. 230. He or she must file a written declaration with the Service on Form 2848 (or equiva lent power of attorney and declaration of representative) showing authorization to represent the taxpayer with a copy of the “Letter of Authorization” attached. A person may make a written request for a “Letter of Authorization” to: Director, Office of Professional Responsibility, Internal Revenue Service, 1111 Constitution Avenue N.W., Washington, DC 20224. Circular No. 230 section 10.7(d) (“Special appearances”) authorizes the Commissioner, or delegate, to allow an individual who is not otherwise eligible to practice before the Service to represent another person in a particular matter.

Employee, general (e) A regular full-time employee representing his or her employer, a general partner representing his partner, bona fide or her partnership, a bona fide officer representing his or her corporation, association, or organized officer, administra- group, a trustee, receiver, guardian, personal representative, administrator, or executor representing a tor, trustee, etc. trust, receivership, guardianship, or estate, or an individual representing his or her immediate family.

He or she may be required to file a written declaration with the Service on Form 2848 showing authorization to represent the taxpayer. See Form 2848 for more information. A preparer of a return (other than a person referred to in paragraph (a), (b), or (c) of this Appendix B) who is not a full-time employee, general partner, a bona fide officer, an administrator, trustee, etc., or an individual representing his or her immediate family may not represent a taxpayer in connection with a determination letter or a technical advice request. See section 10.7(c) of Treasury Department Circular No. 230.

Foreign (f) A foreign representative (other than a person referred to in paragraph (a), (b), or (c) of this Appenrepresentative dix B) is not authorized to practice before the Service and, therefore, must withdraw from represent

(f) A foreign representative (other than a person referred to in paragraph (a), (b), or (c) of this Appendix B) is not authorized to practice before the Service and, therefore, must withdraw from representing a taxpayer in a request for a determination letter. In this situation, the nonresident alien or foreign entity must submit the request for a determination letter on the individual’s or entity’s own behalf or through a person referred to in paragraph (a), (b), or (c) of this Appendix B.

January 2, 2018 270 Bulletin No. 2018–1

26 CFR 601.201: Rulings and determination letters.

Rev. Proc. 2018–7