SECTION 3. UNDER WHAT

CIRCUMSTANCES DOES EO DETERMINATIONS ISSUE DETERMINATION LETTERS?

Matters on which EO Determinations will issue a determination letter

(5) Rev. Proc. 2016–41, 2016–30 I.R.B. 165, which sets forth the procedure for an organization to notify the Service, consistent with § 506 of the Code, that it is operating as an organization described in § 501(c)(4) of the Code.

.03 Forms that are not requests for a determination. Certain organizations are required to submit the following forms, but such forms are not requests for a determination and, thus, are not subject to the procedures in this revenue procedure.

(1) Form 8871, Political Organization Notice of Section 527 Status . A political party, a campaign committee for a candidate for Federal, State or local office, and a political action committee are all political organizations subject to tax under § 527. To be tax-exempt, a political organization may be required to notify the Service that it is to be treated as a § 527 organization by electronically filing Form 8871, Political Organization Notice of Section 527 Status . See https://www.irs.gov/Charities-&-Non-Profits/Political-Organizations .

(2) Form 8976, Notice of Intent to Operate Under Section 501(c)(4) . An organization described in § 501(c)(4) must, no later than 60 days after the date the organization is established, notify the Service that it is operating as an organization described in § 501(c)(4) by submitting a completed Form 8976, Notice of Intent to Operate Under Section 501(c)(4) . See https://www.irs.gov/charities-non- profits/electronically-submit-your-form-8976-notice-of-intent-to-operate-under-section-501c4 .

.01 EO Determinations issues determination letters on the following matters:

(1) Initial qualification for exempt status of organizations described in § 501 or § 521 (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revoked pursuant to § 6033(j) and subordinate organizations included in a group exemption letter that have been revoked pursuant to that provision);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 (affirmation letter) to reflect changes to an organization’s name or address, or to replace a lost exempt status letter;

(3) Classification or reclassification of private foundation status, including whether an organization is—

(a) A private foundation;

(b) A public charity described in §§ 509(a)(1) and 170(b)(1)(A) (other than clauses (v), (vii), and (viii));

(c) A public charity described in § 509(a)(2) or (4);

(d) A public charity described in § 509(a)(3), whether such organization is described in

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Circumstances under which determination letters are not issued

§ 509(a)(3)(B)(i), (ii), or (iii) (“supporting organization type”), and whether or not a Type III supporting organization is functionally integrated;

(e) A private operating foundation described in § 4942(j)(3); or

(f) An exempt operating foundation described in § 4940(d)(2).

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

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

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

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

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

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

(10) Whether an organization is exempt from filing annual information returns under § 6033 as provided in Treas. Reg. § 1.6033–2(g)(1), Rev. Proc. 95–48, 1995–2 C.B. 418, and Rev. Proc. 96–10, 1996–1 C.B. 577;

(11) Determination of foundation status under § 509(a)(3) of non-exempt charitable trusts described in § 4947(a)(1); and

(12) Government entity voluntary termination of § 501(c)(3) recognition (must include documentation that the organization is not subject to income tax, other than under § 501(a)).

.02 The Service may decline to issue a determination letter when appropriate in the interest of sound tax administration or on other grounds whenever warranted by the facts or circumstances of a particular case. In addition, the Service will not issue a determination letter in response to any request if—

(1) the request involves an issue under the jurisdiction of the Associate Chief Counsel described in Rev. Proc. 2018–1, this Bulletin;

(2) the same issue involving the same taxpayer or a related taxpayer is pending in a case in litigation or before an Appeals Office. If the issue in litigation involving the same taxpayer or a related taxpayer is not the taxpayer or a related taxpayer’s qualification as a tax-exempt entity (such as a declaratory judgment action under § 7428), the Service may issue a determination letter on exempt status after consultation with counsel;

(3) the determination letter is requested by an industry, trade association, or similar group on

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Technical advice may be requested in certain cases

Review of determination letters

behalf of individual taxpayers within the group (other than subordinate organizations covered by a group exemption letter);

(4) the determination letter is requested by 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;

(5) the request is based on alternative plans of proposed transactions or on hypothetical situations. An application based on proposed activities that satisfies section 6.07(2) (related to recognizing exempt status in advance of actual operations) is not considered to be based on hypothetical situations;

(6) an organization currently recognized as exempt under § 501(c) seeks a new determination letter confirming that the organization is still recognized under the same Code section under the currently extant facts;

(7) an organization seeks a determination of foundation status that is identical to its current foundation status as determined by EO Determinations. For example, an organization that is already recognized as described in §§ 509(a)(1) and 170(b)(1)(A)(ii) as a school generally will not receive a new determination letter that it is still described in §§ 509(a)(1) and 170(b)(1)(A)(ii) under the currently extant facts;

(8) an organization currently recognized as described in § 501(c)(3) seeks a determination letter recognizing the organization as described in a different subsection of § 501(c); or

(9) 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).

Note : In some circumstances, an organization may seek a letter ruling from the Associate Chief Counsel (Tax Exempt and Government Entities) on a specific legal issue including whether an activity furthers an organization’s exempt purpose. See Rev. Proc. 2018–1 and Rev. Proc. 2018–3, this Bulletin.

.03 EO Determinations generally issues determination letters only if the question presented is answered by a statute, tax treaty, regulation, court opinion, or guidance published in the Internal Revenue Bulletin. At any time during the course of consideration by EO Determinations, if either EO Determinations or the organization believes that its case involves an issue on which there is no published precedent, or there has been non-uniformity in the Service’s handling of similar cases, EO Determinations may decide to seek, or the organization may request that EO Determinations seek, technical advice from the Office of Associate Chief Counsel with subject matter jurisdiction over the issue. See Rev. Proc. 2018–2, this Bulletin.

.04 Determination letters issued under this revenue procedure are not generally reviewed by any other office outside of EO Rulings and Agreements before they are issued. For postdetermination review of determination letters by EO Determinations Quality Assurance, see section 11.03 of this revenue procedure.

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Determination letter based solely on administrative record