SECTION 1. PURPOSE

This revenue procedure modifies and supersedes Rev. Proc. 81–6, 1981–1 C.B.

620; Rev. Proc. 81–7, 1981–1 C.B. 621; Rev. Proc. 89–23, 1989–1 C.B. 844; and Rev. Proc. 2011–33, 2011–25 I.R.B. 887, and combines them into one revenue pro

cedure to provide more easily accessible guidance to grantors and contributors to tax-exempt organizations on deductibility and reliance issues.

Bulletin No. 2018–23 739 June 4, 2018

unless the grantor or contributor had prior knowledge of the revocation of the determination letter or ruling or was in part responsible for, or was aware of, the act or failure to act which gave rise to the revocation of the determination letter or ruling classifying the organization as a public charity.

.04 Provision of § 501(p) - Suspension of Tax-exempt Status of Organizations Designated as Terrorist Organizations .

Section 501(p) provides for the suspension of tax-exempt status under § 501(a) of organizations designated as terrorist organizations under federal law (as described in § 501(p)(2)) and for the denial of charitable contribution deductions for contributions made to such organizations during the period of suspension. Suspension of taxexempt status and non-deductibility of contributions begin on the date of the first publication of a designation or identification described in § 501(p)(2) (ordinarily published by the Office of Foreign Assets Control or OFAC). Under § 501(p)(7), the IRS provides public notice of the suspension and non-deductibility of contributions. However, pursuant to § 501(p)(4) and (7), grantors and contributors may not rely on the IRS listing of organizations with regard to taxexempt status and eligibility for deductible contributions with respect to an organization from the date of the first publication of a terrorist designation of the organization by OFAC or otherwise as provided under § 501(p)(2). Thus, the rules set forth in this revenue procedure regarding grantor and contributor reliance on IRS lists and databases of exempt organizations do not apply in the case of suspensions under § 501(p) from the time that a terrorist designation is made under § 501(p)(2). Also, a designated organization may not challenge the suspension of tax-exempt status or the denial of deductions in an administrative or judicial proceeding (including but not limited to proceedings under § 7428) relating to the federal tax liability of such organization or other person.

.05 Prior Reliance Revenue Procedures .

The IRS has issued several revenue procedures to further describe the extent to which grantors and contributors may

This revenue procedure sets forth the extent to which grantors and contributors may rely on the listing of an organization in Internal Revenue Service (IRS) databases of organizations eligible to receive tax-deductible contributions under § 170, for purposes of determining whether the grants or contributions to such organizations may be deductible under § 170, and for certain other purposes. This revenue procedure also provides safe harbors for determining that a grantor’s or contributor’s grant or contribution will not cause the grantor or contributor to be considered to be responsible for, or aware of, an act that results in an organization’s loss of public charity classification and for determining that a grant or contribution is considered an unusual grant.

Finally, this revenue procedure incorporates the modifications made in the transition from the use of Publication 78 to the use of IRS’s database, Tax Exempt Organization Search (Pub. 78 data), reflects the changes to regulations eliminating the advance ruling process and changing the computation period for determining public support for organizations classified under §§ 170(b)(1)(A)(vi) and 509(a)(1) or under § 509(a)(2), and provides non-substantive modifications and changes throughout for clarity and readability purposes.