SECTION 17. EFFECTIVE

DATE

This Revenue Procedure is effective January 2, 2023.

Bulletin No. 2023–1 301 January 3, 2023

SECTION 18. PAPERWORK REDUCTION ACT

DRAFTING INFORMATION

The collections of information contained in this revenue procedure have been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 USC § 3507) under multiple control numbers.

The collection of information on Forms 1023 and 1023-EZ have been reviewed and approved under control number 1545-0047. The collection of information on Forms 1024 and 1024-A have been reviewed and approved under control number 1545-0047. The collection of information on Form 1028 has been reviewed and approved under control number 1545-0047. The collection of information on these forms is required if an organization wants to be recognized as tax-exempt by the Service. The Service needs the information to determine whether the organization satisfies the legal requirements for tax-exempt status.

The specific information collected in connection with requesting a letter application has been approved and reviewed under control number 1545-0047. The Service needs this information to determine whether the organization satisfies the legal requirements for tax-exempt status.

The collection of information for Form 8940 has been approved and reviewed under control number 1545-2211. This information is required to evaluate and process the request for a determination letter.

The collection of information on Form 2848 has been reviewed and approved under control number 1545-0150. It is used to authorize someone to act for the respondent in tax matters. It grants all powers that the taxpayer has except signing a return and cashing refund checks. Data is used to identify authorized representatives and to ensure that confidential information is not divulged to unauthorized persons.

The collection of information on Form 8718 has been reviewed and approved under control number 1545-0047. The Omnibus Reconciliation Act of 1990, Pub. L. 101-508, requires payment of a “user fee” with each application for a tax-exempt organization determination letter. Because of this requirement, the Form 8718 was created to provide filers the means to enclose their payment and indicate what type of request they are making.

The collections of information are voluntary, to obtain a benefit. The likely respondents are taxexempt organizations and their authorized representatives.

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB number.

Books and records relating to the collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by § 6103.

The principal author of this Revenue Procedure is Ingrid Vatamanu of the Office of Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes). For additional information, please contact Ms. Vatamanu at 202–317–6177 (not a toll-free number).

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APPENDIX A

Schedule of User Fees

This table summarizes the various types of Exempt Organization determination letter user fees.

ISSUE USER FEE (1) Application for recognition of exemption under § 501(c)(3) submitted on Form 1023-EZ $275 (2) All other applications for recognition of exemption under § 501 except for those included in (1) of Appendix A of this revenue procedure and under § 521 (other than pension, profit-sharing, and stock bonus plans described in $600 § 401).

(3) Group exemption letters $2,500 Note: An additional user fee under (1) or (2) of Appendix A of this revenue procedure above is also required when a central organization submits an initial application for recognition of exemption with its request for a group exemption letter. As explained in section 3.02(11) of this revenue procedure, the Service is not currently accepting requests for group exemption letters. (4) Canadian registered charities None Note : In accordance with the income tax treaty between the United States and Canada, and pursuant to a mutual arrangement between the competent authorities of the two countries, Canadian registered charities are automatically recognized as exempt under § 501(c)(3) without filing an application for recognition of exemption. For details, see Notice 99-47, 1999-2 CB 391. Therefore, no user fee is required when a Canadian registered charity submits a written request to be listed in Tax Exempt Organization Search database for organizations eligible to receive tax-deductible charitable contributions (Pub. 78 data), or for a determination on its private foundation status. For additional information about the submission process, refer to the Form 1023 Instructions. (5) Affirmation Letter – Confirmation of tax-exempt status (to replace lost tax-exempt status letter, and to reflect None name and address changes)

(6) Reclassification of private foundation status, including

• operating foundation status described in § 4942(j)(3) and exempt operating foundation status described in § 4940(d);

• a determination that a public charity is described in § 509(a)(3)(i), (ii), or (iii), including whether or not a Type III supporting organization is functionally integrated;

• reclassification of foundation status, including voluntary requests from public charities for private foundation status and voluntary requests from public charities, including requests from subordinate organizations, to change from one public charity status to another public charity status; or

• final public charity classification determination for organizations whose advance ruling periods expired prior to June 9, 2008, without providing the required information (Form 8940).

$550

(7) Regulations § 301.9100 relief in connection with applications for recognition of exemption None (8) Section 507 terminations – advance or final ruling under § 507(b)(1)(B) (Form 8940) $550 (9) Section 4942(g)(2) set asides – advance approval (Form 8940) $2,500 (10) Section 4945 advance approval of organization’s grant making procedures (Form 8940) $2,500 (11) Section 4945(f) advance approval of voter registration activities (Form 8940) $2,500 (12) Section 6033 annual information return filing requirements (including a subordinate organization’s change of $550 filing requirements) (Form 8940)

(13) Unusual grants to certain organizations under §§ 170(b)(1)(A)(vi) and 509(a)(2) (Form 8940) $550 (14) User Fee for determination letters under the jurisdiction of the Determinations Office not otherwise described $550 or covered in this Appendix.

Bulletin No. 2023–1 303 January 3, 2023

APPENDIX B

Authorized Representatives

To sign a request for a determination letter or to appear before the Service in connection with the request, the representative must be:

Attorney (a) An attorney who is a member in good standing of the bar of the highest court of any state, possession, territory, commonwealth, or the District of Columbia and who is not currently under suspension or disbarment from practice before the Service. He or she must file a written declaration with the Service on Form 2848 showing current qualification as an attorney and current authorization to represent the taxpayer. Certified public (b) A certified public accountant who is qualified to practice in any state, possession, territory, commonwealth, accountant or the District of Columbia and who is not currently under suspension or disbarment from practice before the

Certified public (b) A certified public accountant who is qualified to practice in any state, possession, territory, commonwealth, accountant or the District of Columbia and who is not currently under suspension or disbarment from practice before the

Service. He or she must file a written declaration with the Service on Form 2848 showing current qualification as a certified public accountant and current authorization to represent the taxpayer. Enrolled agent (c) An enrolled agent, other than an attorney or certified public accountant, that is currently enrolled to practice before the Service and is not currently under suspension or disbarment from practice before the Service, including a person enrolled to practice only for employee plans matters. He or she must file a written declaration with the Service on Form 2848 showing current enrollment and authorization to represent the taxpayer. Either the enrollment number or the expiration date of the enrollment card must be included in the declaration. For the rules on who may practice before the Service, see Treasury Department Circular No. 230. A person with (d) Any other person, including a foreign representative, who has received a “Letter of Authorization” from a “Letter of the Director, Office of Professional Responsibility under section 10.7(d) of Treasury Department Circular No. Authorization” 230. He or she must file a written declaration with the Service on Form 2848 (or equivalent power of attorney

A person with (d) Any other person, including a foreign representative, who has received a “Letter of Authorization” from a “Letter of the Director, Office of Professional Responsibility under section 10.7(d) of Treasury Department Circular No. Authorization” 230. He or she must file a written declaration with the Service on Form 2848 (or equivalent power of attorney

and declaration of representative) showing authorization to represent the taxpayer with a copy of the “Letter of Authorization” attached. A person may make a written request for a “Letter of Authorization” to: Director, Office of Professional Responsibility, Internal Revenue Service, 1111 Constitution Avenue N.W., Washington, DC 20224. Circular No. 230 section 10.7(d) (“Special appearances”) authorizes the Commissioner, or delegate, to allow an individual who is not otherwise eligible to practice before the Service to represent another person in a particular matter. Employee, (e) A regular full-time employee representing his or her employer, a general partner representing his or her general partner, partnership, a bona fide officer representing his or her corporation, association, or organized group, a trustee, bona fide officer, receiver, guardian, personal representative, administrator, or executor representing a trust, receivership, guardadministrator, ianship, or estate, or an individual representing his or her immediate family. He or she may be required to file a trustee, etc. written declaration with the Service on Form 2848 showing authorization to represent the taxpayer. See Form

Employee, (e) A regular full-time employee representing his or her employer, a general partner representing his or her general partner, partnership, a bona fide officer representing his or her corporation, association, or organized group, a trustee, bona fide officer, receiver, guardian, personal representative, administrator, or executor representing a trust, receivership, guardadministrator, ianship, or estate, or an individual representing his or her immediate family. He or she may be required to file a trustee, etc. written declaration with the Service on Form 2848 showing authorization to represent the taxpayer. See Form

2848 for more information. A preparer of a return (other than a person referred to in paragraph (a), (b), or (c) of this Appendix B) who is not a full-time employee, general partner, a bona fide officer, an administrator, trustee, etc., or an individual representing his or her immediate family may not represent a taxpayer in connection with a determination letter or a technical advice request. See section 10.7(c) of Treasury Department Circular No. 230. Foreign (f) A foreign representative (other than a person referred to in paragraph (a), (b), or (c) of this Appendix B) is representative not authorized to practice before the Service and, therefore, must withdraw from representing a taxpayer in

(f) A foreign representative (other than a person referred to in paragraph (a), (b), or (c) of this Appendix B) is not authorized to practice before the Service and, therefore, must withdraw from representing a taxpayer in a request for a determination letter. In this situation, the nonresident alien or foreign entity must submit the request for a determination letter on the individual’s or entity’s own behalf or through a person referred to in paragraph (a), (b), or (c) of this Appendix B.

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the meaning of § 871(g)(1)(B)(i) when the instrument is payable 183 days or less from the date of original issue (without regard to the period held by the taxpayer).

(4) Section 894.—Income Affected by Treaty.—Whether a person that is a resident of a foreign country is entitled to benefits under the United States income tax treaty with that foreign country pursuant to the limitation on benefits article. However, the Service may rule regarding the legal interpretation of a particular provision within the relevant limitation on benefits article.

(5) Section 954.—Foreign Base Company Income.—The effective rate of tax that a foreign country will impose on income.

(6) Section 954.—Foreign Base Company Income.—Whether the facts and circumstances show that a controlled foreign corporation makes a substantial contribution through the activities of its employees to the manufacture, production, or construction of the personal property sold within the meaning of § 1.954-3(a)(4)(iv).

(7) Sections 7701(b) and 894.—Definition of Resident Alien and Nonresident Alien.—Whether an alien individual, whether or not a dual resident alien, is a nonresident of the United States, including whether the individual has met the requirements of the substantial presence test or exceptions thereto, or whether the alien is solely a nonresident under a United States income tax treaty. However, the Service may rule regarding the legal interpretation of a particular provision of § 7701(b) or the regulations thereunder.

.02 General Areas. (1) The prospective application of the estate tax to the property or the estate of a living person, except that rulings may be issued on any international issues in a ruling request accepted pursuant to § 5.06 of Rev. Proc. 2023-1, in this Bulletin.

(2) Whether reasonable cause exists under Subtitle F (Procedure and Administration) of the Code.

(3) Whether a proposed transaction would subject a taxpayer to criminal penalties.

(4) Any area where the ruling request does not comply with the requirements of Rev. Proc. 2023-1.

(5) Any area where the same issue is the subject of the taxpayer’s pending re

26 CFR § 601.201: Rulings and determination letters Areas in which rulings will not be issued, Associate Chief Counsel (International).