SECTION 2. NATURE OF

CHANGES TO REV. PROC. 2017–5 AND RELATED REVENUE PROCEDURES AND FORMS

What changes have been made to Rev. Proc. 2017–5?

.01 This revenue procedure updates Rev. Proc. 2017–5, which deals with procedures for issuing Exempt Organization determination letters. Notable changes to Rev. Proc. 2017–5 that appear in this year’s update include

(1) Section 3.02 was amended to remove the term “ordinarily” to clarify the situations in which the Service will not issue a determination letter.

(2) Section 3.02 was amended to include that the Service will not issue a determination letter when the request concerns an organization whose purpose is directed to the improvement of business conditions of one or more lines of business relating to an activity involving controlled substances (within the meaning of schedule I and II of the Controlled Substances Act) which is prohibited by Federal law regardless of its legality under the law of the state in which such activity is conducted.

January 2, 2018 236 Bulletin No. 2018–1

Related revenue procedures

(3) Section 3.02 was amended to remove from the list of circumstances the Service will not issue a determination letter when the request involves an industry-wide problem.

(4) Section 3.02 was amended to include that the Service will not issue a determination letter when an organization currently recognized as exempt under § 501(c) (other than a government entity as specified in section 3.01 (12)) requests a determination to relinquish its exempt status under § 501(a).

(5) Section 6.05 was amended to include in the list of organizations ineligible to submit Form 1023-EZ, and that must use Form 1023 to apply for recognition of exemption under § 501(c)(3) organizations applying for retroactive reinstatement under section 4 of Rev. Proc. 2014–11, 2014–3 I.R.B. 411, after being automatically revoked, that are seeking a foundation classification that is different from the classification they had at the time of revocation.

(6) Section 6.08(2) was amended to include a citation to Treas. Reg. § 301.9100–3 clarifying when additional relief is available for organizations failing to satisfy the 27 months filing requirement in section 6.08(1).

(7) Section 12 was amended to modify procedures for requesting § 7805(b) relief to limit retroactive revocation or modification of a determination letter.

(8) Section 13 was amended to correspond with the language in the regulations.

(9) Section 18 was amended and includes control numbers for Form 2848 and Form 8718.

(10) The Schedule of User Fees in Appendix A was amended, in part, to reflect a change to a flat user fee of $600 for all § 501 applications other than Form 1023-EZ applications and includes a change of a $2,000 fee for group exemption letters.

(11) Editorial changes were made throughout including minor non-substantive changes, dates, and cross-references, and citations to other revenue procedures were changed to reflect the appropriate annual revenue procedures.

.02 This revenue procedure supplements the following revenue procedures–

(1) Rev. Proc. 80–27, 1980–1 C.B. 677, which sets forth procedures under which exemption may be recognized on a group basis for subordinate organizations affiliated with and under the general supervision and control of a central organization.

(2) Rev. Proc. 72–5, 1972–1 C.B. 709, which provides information for religious and apostolic organizations seeking recognition of exemption under § 501(d).

(3) Rev. Proc. 2015–17, 2015–7 I.R.B. 599, which provides information regarding procedures for organizations described in § 501(c)(29).

(4) Rev. Proc. 2014–11, 2014–3 I.R.B. 411, which sets forth procedures for reinstating the tax-exempt status of organizations that have had their tax-exempt status automatically revoked under § 6033(j)(1).

Bulletin No. 2018–1 237 January 2, 2018

Related forms that are not a request for a determination letter