SECTION 8. RELIANCE ON EO

BMF EXTRACT INFORMATION FROM OTHER SOURCES

.01 Requirements for Reliance on Information from Third Parties .

A grantor or contributor may rely on information about an organization from the EO BMF Extract that is obtained from a third party, so long as the requirements of this section 8.01 are met:

(1) The third party provides a report to the grantor or contributor that includes:

(a) The organization’s name, EIN, foundation status under § 509(a)(1), (2), or (3) (including supporting organization type, if applicable), and whether contributions to the organization are deductible;

(b) A statement that the information is from the most current update of the EO BMF Extract and the revision date of the EO BMF Extract containing the information; and

Bulletin No. 2018–23 747 June 4, 2018

the continuing qualification of an organization as one described in § 170(c)(2) or § 501(c)(3), or to the continuing classification of an organization under § 509(a). The remedy is available in these cases if the IRS determines that revocation of taxexempt status under § 501(c)(3), status under § 170(c)(2), or foundation status under § 509(a) is appropriate, the organization has exhausted its administrative remedies, and the IRS has issued a final adverse determination letter to the organization. Under § 7428(b)(4), no action may be brought under § 7428 with respect to any automatic revocation of status described in § 6033(j)(1).

.02 Certain Contributions Are Valid During § 7428 Proceedings .

Certain contributions are deemed valid under § 7428(c) during proceedings for declaratory judgment involving the revocation of a determination that the organization is described in § 170(c)(2). Under this provision, the organization continues to be treated as an organization described in § 170(c)(2) with respect to contributions from individuals (up to a maximum of $1,000 in the aggregate during the period during which statutory protection applies, as described in this section 9.02) and from other charitable organizations described in § 170(c)(2) that are exempt from tax under § 501(a) (other than organizations with respect to which there is pending a proceeding to revoke the determination under § 170(c)(2)) (without limit). Statutory protection for such contributions, if declaratory judgment is sought on the revocation, would begin on the date of the public announcement of the revocation or removal of the organization’s name from Tax Exempt Organization Search (Pub. 78 data) or the EO BMF Extract, whichever is earlier, and end on the date on which a decision in the Tax Court becomes final or a judgment of the District Court of the United States for the District of Columbia or the U.S. Court of

Federal Claims is entered that the organization is not described in § 170(c)(2). This reliance, however, is not extended to any individual who was responsible, in whole or in part, for the activities (or failures to act) on the part of the organization that were the basis for the revocation.