SECTION 11. DECLARATORY

JUDGMENT PROVISIONS OF § 7428

.01 In general. Section 10 of Rev. Proc. 2020-5 (or its successor) generally explains when and how a declaratory judgment proceeding under § 7428 may be filed in the United States Tax Court, the United States Court of Federal Claims, or the District Court of the United States for the District of Columbia.

.02 Application to central organiza- tions. Section 10.02 of Rev. Proc. 2020-5 (or its successor) describes when § 7428 applies to a central organization.

.03 Application to subordinate orga- nizations. Section 7428 applies to a final determination by the IRS that a particular subordinate organization—

(1) Is no longer described in § 501(c) and therefore is not exempt under § 501(a) (see section 8.02(1)(b)(i) of this revenue procedure); or

(2) Was not eligible for initial inclusion in or subsequent addition to a group exemption letter because it is an organization described in section 3.04(1) (foreign organization), section 3.04(2) (private foundation), section 3.04(3) (Type III supporting organization), or section 3.04(4)

(QNHII) of the proposed revenue procedure (see section 8.02(1)(b)(ii) of this revenue procedure).

.04 Actions to which § 7428 does not apply. Section 7428 does not apply to the following actions:

(1) Non-acceptance of a group exemption letter request (see section 4.02 of this revenue procedure).

(2) Non-issuance of a group exemption letter (see section 4.03 of this revenue procedure).

(3) Termination of a group exemption letter for a reason described in section 8.01(1), other than section 8.01(1)(b) (determination by the IRS that the central organization is no longer described in § 501(c), in which case § 7428 would apply to the central organization), of this revenue procedure.

(4) Removal of a subordinate organization from a group exemption letter as described in section 8.02(1), other than section 8.02(1)(b)(ii) (determination by the IRS that an organization is not eligible for initial inclusion in or subsequent addition to a group exemption letter as a subordinate organization), of this revenue procedure.

.05 Who must file. A subordinate organization must file the declaratory judgment action under § 7428 on its own behalf with respect to a determination affecting its own initial or continuing qualification or classification. Accordingly, a central organization may not file a declaratory judgment action under § 7428 on behalf of one or more of its subordinate organizations. Conversely, a subordinate organization may not file the declaratory judgment action under § 7428 on behalf of its central organization. For more information on the application of § 7428, see section 10 of Rev. Proc. 2020-5 (or its successor).