SECTION 6. WHAT ARE THE SPECIFIC PROCEDURES FOR APPLICATIONS FOR RECOGNITION OF

EXEMPT STATUS UNDER § 501 OR § 521? .....................................................................................................................................................248

In general .......................................................................................................................................................................................248 Terrorist organizations not eligible to apply for recognition of exemption ................................................................................248 Format of application.....................................................................................................................................................................248 Form 8718......................................................................................................................................................................................248

Bulletin No. 2018–1 233 January 2, 2018

Form 1023-EZ applications...........................................................................................................................................................248 Form 1023 and Form 1023-EZ applications for reinstatement after automatic revocation........................................................250 What are the requirements for a completed application?.............................................................................................................250 Requirements for a completed application other than a Form 1023-EZ application..................................................................250 Requirements for a completed Form 1023-EZ application..........................................................................................................251 What are the standards for issuing a determination letter on exempt status?.............................................................................252 Exempt status must be established in application, including attestation and supporting documents.........................................252 Exempt status may be recognized in advance of actual operations ............................................................................................252 Even if application is complete, additional information may be required ..................................................................................252 Effective date of exemption ..........................................................................................................................................................253

SECTION 7. WHAT ARE THE SPECIFIC PROCEDURES FOR DETERMINATION LETTER REQUESTS ON FORM 8940? ......253

In general .......................................................................................................................................................................................253 Requests made on Form 8940.......................................................................................................................................................253 Initial classification of private foundation status..........................................................................................................................254 Under what circumstances must an organization request a determination of foundation status, and when is such a request optional? ..................................................................................................................................................254 Not applicable to private foundation terminations under § 507 or changes of status pursuant to examination........................254

SECTION 8. WITHDRAWAL OF A REQUEST FOR DETERMINATION LETTER .................................................................................255

Request may be withdrawn prior to issuance of a determination letter......................................................................................255 § 7428 implications of withdrawal of application under § 501(c) or (d)....................................................................................255

SECTION 9. PROCEDURES FOR ADVERSE DETERMINATION LETTERS ............................................................................................255

In general .......................................................................................................................................................................................255 Types of requests that may receive Appeals Office consideration..............................................................................................255 Contents of proposed adverse determination letter for requests with appeals rights..................................................................256 Protest/appeal of a proposed adverse determination letter on certain issues ..............................................................................256 Final adverse determination letter where no protest/appeal is submitted....................................................................................256 Review of protest by EO Determinations.....................................................................................................................................256 Consideration by the Appeals Office ............................................................................................................................................256 Effect of new information raised in protest/appeal ......................................................................................................................256 An appeal or protest may be withdrawn.......................................................................................................................................257 Appeal and conference rights not applicable in certain situations ..............................................................................................257 Adverse determination letter on an issue that will not receive Appeals Office consideration...................................................257

SECTION 10. DECLARATORY JUDGMENT PROVISIONS OF § 7428 .......................................................................................................257

Actual controversy involving certain issues .................................................................................................................................257 Final determination to which § 7428 applies ...............................................................................................................................258 Failure to make a determination to which § 7428 applies...........................................................................................................258 § 7428 does not apply to the non-acceptance or withdrawal of a request..................................................................................258 Exhaustion of administrative remedies .........................................................................................................................................258 Not earlier than 270 days after seeking determination ................................................................................................................259 Service must have reasonable time to act on an appeal or protest..............................................................................................259

SECTION 11. FAVORABLE DETERMINATION LETTERS ...........................................................................................................................259

Reliance on determination letter ...................................................................................................................................................259 Limitations on reliance ..................................................................................................................................................................259 Post-determination review .............................................................................................................................................................260

SECTION 12. REVOCATION OR MODIFICATION OF A DETERMINATION LETTER .......................................................................260

Appeal and conference procedures in the case of revocation or modification of exempt status letter......................................260 Revocation or modification of a determination letter may be retroactive...................................................................................260 Organization may request that retroactivity be limited under § 7805(b) ....................................................................................261 Effective date of revocation or modification of a determination letter on exempt status ..........................................................262

January 2, 2018 234 Bulletin No. 2018–1