SECTION 1. PURPOSE

The purpose of this revenue procedure is to modify and supersede Rev. Proc. 8027, 1980-1 C.B. 677 (as modified by Rev. Proc. 96-40, 1996-2 C.B. 301) by setting forth updated procedures under which recognition of exemption from federal income tax for organizations described in § 501(c) of the Internal Revenue Code (Code) may be obtained on a group basis for subordinate organizations affiliated with and under the general supervision or control of a central organization. This revenue procedure relieves each subordinate organization covered by a group exemption letter from filing its own application for recognition of exemption. This revenue procedure also sets forth updated procedures a central organization must follow to maintain a group exemption letter. This revenue procedure is provided as a matter of sound tax administration for the administrative convenience of central organizations and the Internal Revenue Service (IRS).