SECTION 7. WHAT

ARE THE SPECIFIC PROCEDURES FOR DETERMINATION LETTER REQUESTS ON FORM 8940?

In general

Requests made on Form 8940

Initial classification of private foundation status

Under what circumstances must an organization request a determination of foundation status, and when is such a request optional?

(a) If the Service requires the organization to alter its activities or make substantive amendments to its enabling instrument, tax-exempt status will be effective as of the date specified in the determination letter.

(b) If the Service requires the organization to make a non-substantive amendment, tax-exempt status will ordinarily be recognized as of the date of formation if it satisfies the requirements in section 6.08(1) of this revenue procedure. Examples of non-substantive amendments include correction of a clerical error in the enabling instrument or the addition of a dissolution clause where the activities of the organization prior to the determination letter are consistent with the requirements for tax-exempt status.

.01 This section explains the specific procedures for requesting a determination letter by submitting Form 8940, including requests for a determination letter on foundation status.

.02 A request described in section 4.02(6) of this revenue procedure must be submitted on Form 8940 (except where otherwise permitted, including when such request is made as part of an application for recognition of exemption), along with all information, documentation, and other materials required by Form 8940 and the instructions thereto, as well as the appropriate user fee provided in Appendix A. For complete information about filing requirements and the submission process, refer to Form 8940 and the Instructions for Form 8940.

.03 All § 501(c)(3) organizations are classified as private foundations under § 509(a) unless they qualify as a public charity under § 509(a)(1) (which cross-references § 170(b)(1)(A)(i)(vi), and (ix)), (2), (3), or (4). See Treas. Reg. §§ 1.170A-9 and 1.509(a)-1 through 1.509(a)-7. The Service determines an organization’s private foundation or public charity status when the organization files its Form 1023, or when eligible, Form 1023-EZ. This status will be included in the organization’s determination letter on tax-exempt status.

.04 (1) Requests to change from one public charity classification to another public charity classification . On its Form 990, Return of Organization Exempt From Income Tax Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except private foundations), a public charity indicates the paragraph of § 509(a), and subparagraph of § 170(b)(1)(A), if applicable, under which it qualifies as a public charity. Because of changes in its activities or operations, this may differ from the public charity status listed in its original determination letter. Although an organization is not required to obtain a determination letter to qualify for the new public charity status, in order for Service records to recognize any change in public charity status, an organization must obtain a new determination of foundation status by filing Form 8940 pursuant to this revenue procedure.

(2) Requests from public charities for private foundation status . If a public charity no longer qualifies as a public charity under § 509(a)(1)-(4), then it becomes a private foundation, and, as a private foundation, it must file Form 990-PF, Return of Private Foundation or Section 4947(a) (1) Trust Treated as Private Foundation . The organization is not required to, but may, obtain a determination letter on its new private foundation status. The organization indicates this change in foundation status by filing its Form 990-PF return and following any procedures specified in the form, instructions, or other published guidance. Thereafter, the organization may terminate its private foundation status, such as by giving notice and qualifying as a public charity again under

Bulletin No. 2023–1 287 January 3, 2023

Not applicable to notices submitted by private foundations regarding terminations under § 507 or changes of status pursuant to examination

SECTION 8. WITHDRAWAL OF A REQUEST FOR DETERMINATION LETTER

Request may be withdrawn prior to issuance of a determination letter

SECTION 7428 IMPLICATIONS OF WITHDRAWAL OF APPLICATION UNDER § 501(C) OR (D)

§ 509(a)(1)-(3) during a 60-month termination period in accordance with the procedures under § 507(b)(1)(B) and Treas. Reg. § 1.507-2(b).

(3) Requests from private foundations for public charity status . An organization that erroneously determined that it was a private foundation (for example, by erroneously classifying an item or items in its calculation of public support) and wishes to correct the error can request a determination letter classifying it as a public charity by showing that it continuously met the public support tests during the relevant periods.

(4) Requests for private operating foundation status . A private foundation may qualify as an operating foundation under § 4942(j)(3) without a determination letter from the Service, but the Service will not recognize such status in its records without a determination letter from the Service. An organization claiming to be an exempt operating foundation under § 4940(d)(2) must obtain a determination letter from the Service recognizing such status to be exempt from the § 4940 tax on net investment income.

.05

(1) The procedures in this revenue procedure do not apply to the notice an organization must submit in seeking to terminate its private foundation status under § 507.

(2) The procedures in this revenue procedure also do not apply to the examination of an organization which results in changes to its foundation status.

.01 A taxpayer may withdraw a request for a determination letter at any time before the determination letter is issued by the Service. An authorized individual must make such a request in writing in accordance with the instructions to the form on which the request for a determination letter was submitted, if applicable. For purposes of this section 8.01, the issuance of a determination letter includes a proposed adverse determination letter.

(1) When a request for determination letter is withdrawn, the Service will retain the application, Form 8940, or letter request and all supporting documents.

(2) The Service may consider the information submitted in connection with the withdrawn request in a subsequent examination of the organization, or in connection with a subsequent application submitted by the organization.

(3) Generally, the user fee will not be refunded if a request is withdrawn. See section 14 of this revenue procedure.

.02 The withdrawal of an application under § 501(c) or (d) is not a failure to make a determination within the meaning of § 7428(a)(2) or an exhaustion of administrative remedies within the meaning of § 7428(b)(2).

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SECTION 9. PROCEDURES FOR ADVERSE DETERMINATION LETTERS

In general

Types of requests that may receive Independent Office of Appeals consideration

Contents of proposed adverse determination letter for requests with appeals rights

Protest/appeal of a proposed adverse determination letter on certain issues

Final adverse determination letter where no protest/ appeal is submitted

.01 This section explains the procedures for issuing adverse determination letters. Different procedures apply to adverse determination letters relating to issues that may receive consideration by the Independent Office of Appeals and to all other types of adverse determination letters.

.02 The following types of determination letter requests will provide an organization with an opportunity to protest/appeal a proposed adverse determination—

(1) the initial qualification of the organization as exempt from tax under §§ 501(a) or 521, or as an organization described in § 170(c)(2);

(2) the classification or reclassification of the organization’s foundation status under § 509(a), including the classification or re-classification of a § 4947(a)(1) non-exempt charitable trust as described in § 509(a)(3); and

(3) the classification of the organization as a private operating foundation under § 4942(j)(3).

.03 If EO Determinations reaches the conclusion that the organization does not meet the requirements for a favorable determination letter and the letter is a type for which an opportunity for protest/appeal is available under section 9.02 of this revenue procedure, the Service will issue a proposed adverse determination letter, which will—

(1) include a detailed discussion of the basis for the Service’s conclusion; and

(2) inform the organization of its opportunity to protest/appeal the decision and request a conference with the Independent Office of Appeals.

The non-acceptance under section 4.10 of this revenue procedure of a request for a determination letter is not a proposed adverse determination.

.04 To protest/appeal a proposed adverse determination letter described in section 9.02 of this revenue procedure, the organization must submit a statement of the facts, law, and arguments in support of its position, within 30 days of the date of the proposed adverse determination letter. The organization must also state whether it is requesting a conference with the Independent Office of Appeals.

.05 If an organization does not submit a timely protest/appeal of a proposed adverse determination letter on an issue described in section 9.02 of this revenue procedure, a final adverse determination letter will be issued to the organization. The final adverse letter will provide information about the disclosure of the proposed and final adverse letters. See section 13.04 of this revenue procedure.

The non-acceptance under section 4.10 of this revenue procedure of a request for a determination letter is not a final adverse determination.

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Review of protest by EO Determinations

Consideration by the Independent Office of Appeals

Effect of new information raised in protest/appeal

An appeal or protest may be withdrawn

Appeal and conference rights not applicable in certain situations

Adverse determination letter on an issue that will not receive consideration by the Independent Office of Appeals

.06 If an organization submits a protest/appeal of a proposed adverse determination letter described in section 9.02 of this revenue procedure, EO Determinations will review the protest and, if it determines that the organization satisfies the requirements for approval of its request, issue a favorable determination letter. If EO Determinations maintains its adverse position after reviewing the protest, it will forward the case file to the Independent Office of Appeals. If new information is raised in the protest, EO Determinations will follow the procedures described in section 9.08 of this revenue procedure, which may require the issuance of a new proposed denial, prior to sending the case to the Independent Office of Appeals.

.07 The Independent Office of Appeals will consider the organization’s protest/appeal submitted in response to a proposed adverse determination letter described in section 9.02 of this revenue procedure. If the Independent Office of Appeals agrees with the proposed adverse determination, it will either issue a final adverse determination or, if a conference was requested, contact the organization to schedule a conference. At the end of the conference process, which may involve the submission of additional information, the Independent Office of Appeals will generally issue a final adverse determination letter or a favorable determination letter.

If the Independent Office of Appeals believes that the tax-exempt status or private foundation status issue is not covered by published precedent or that there is non-uniformity, the Independent Office of Appeals must request technical advice from the Office of Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes). See Rev. Proc. 2023-2.

.08 If the organization submits new information as part of a protest, or during consideration by the Independent Office of Appeals, the matter may be returned to EO Determinations for further consideration. As a result of its review of the new information, EO Determinations may issue a favorable determination letter, rebuttal letter, or new proposed adverse determination letter. If a rebuttal letter is issued, EO Determinations will forward the case to the Independent Office of Appeals. If a new proposed adverse determination letter is issued, the organization must submit a protest/appeal of the new proposed adverse determination letter in order to have consideration of the issue by the Independent Office of Appeals.

.09 An organization may withdraw its protest/appeal before the Service issues a final adverse determination letter. Upon receipt of the withdrawal request, the Service will complete the processing of the case in the same manner as if no appeal or protest was received. An organization that withdraws a protest/appeal will not be considered to have exhausted its administrative remedies within the meaning of § 7428(b)(2).

.10 The opportunity to appeal a proposed adverse determination letter and the conference rights described above are not applicable to matters where delay would be prejudicial to the interests of the Service (such as in cases involving fraud, jeopardy, the imminence of the expiration of the statute of limitations, or where immediate action is necessary to protect the interests of the Federal government).

.11 If EO Determinations reaches the conclusion that the organization does not meet the requirements for a favorable determination on an issue that is not described in section 9.02 of this revenue procedure ( e.g., advance approval that a potential grant or contribution constitutes an unusual grant; exemption from Form 990 filing requirements), the Service generally will advise the organization of its adverse position and give the organization a chance to submit additional information or withdraw the request before issuing an adverse determination letter, which will include a detailed discussion of the basis for the Service’s conclusion. The organization will not have the opportunity to protest/appeal the adverse determination letter.

January 3, 2023 290 Bulletin No. 2023–1

Possible future updates related to review by the Independent Office of Appeals

SECTION 10. DECLARATORY JUDGMENT PROVISIONS OF § 7428

Actual controversy involving certain issues

Final determination to which § 7428 applies

Failure to make a determination to which § 7428 applies

.12 As part of the implementation of the Taxpayer First Act, Pub. L. 116-25 (2019), the Service and the Independent Office of Appeals continue to review current policies and procedures and prior administrative pronouncements. As a result of this review, there may be additional updates to this revenue procedure or other forms of guidance.

.01 Generally, a declaratory judgment proceeding under § 7428 can 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 with respect to an actual controversy involving a determination by the Service or a failure of the Service to make a determination with respect to—

(1) the initial qualification or continuing qualification of an organization as an organization described in § 501(c)(3) that is exempt from tax under § 501(a) or as an organization described in § 170(c)(2);

(2) the initial classification or continuing classification of an organization as a private foundation (as defined in § 509(a));

(3) the initial classification or continuing classification of an organization as a private operating foundation (as defined in § 4942(j)(3));

(4) the initial classification or continuing classification of a cooperative as an organization described in § 521(b) which is exempt from tax under § 521(a); or

(5) the initial qualification or continuing qualification of an organization as an organization described in § 501(c) (other than paragraph (3)) or (d) and exempt from tax under § 501(a).

.02 A final determination to which § 7428 applies is a determination letter, sent by certified or registered mail, which holds that the organization is—

(1) not described in §§ 501(c), (d), or 170(c)(2);

(2) a public charity described in a part of §§ 509 or 170(b)(1)(A) other than the part under which the organization requested classification;

(3) not a private operating foundation as defined in § 4942(j)(3); or

(4) a private foundation and not a public charity described in a part of §§ 509 or 170(b)(1)(A).

.03 If the Service declines to issue a determination letter under section 3.02 of this revenue procedure to an organization seeking a determination described in section 10.01 of this revenue procedure, the organization may be able to pursue a declaratory judgment under § 7428, provided that it has exhausted its administrative remedies.

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Section 7428 does not apply to the non-acceptance or withdrawal of a request

Exhaustion of administrative remedies

Not earlier than 270 days after seeking determination

.04 (1) The non-acceptance for processing of a request under section 4.10 of this revenue procedure is not a final determination or a failure to make a determination to which § 7428 applies.

(2) The withdrawal of an application pursuant to section 8 of this revenue procedure is not a failure to make a determination within the meaning of § 7428(b)(2).

.05 Before filing a declaratory judgment action, an organization must exhaust its administrative remedies by taking, in a timely manner, all reasonable steps to secure a determination from the Service. These include—

(1) (a) For an organization seeking to be described in § 501(c)(3), filing a completed application Form 1023 (within the meaning of section 6.06(1) of this revenue procedure) or a completed Form 1023-EZ (within the meaning of section 6.06(2) of this revenue procedure);

(b) For an organization seeking private foundation classification, filing a completed Form 8940; or

(c) For an organization seeking to be described in § 501(c) (other than paragraph (3)) or in § 501(d), filing a completed appropriate Form or letter request (within the meaning of section 6.06(1) of this revenue procedure).

(2) In appropriate cases, requesting relief pursuant to Treas. Reg. § 301.9100-1 regarding the extension of time for making an election or application for relief from tax;

(3) When applicable, timely submitting all additional information requested by the Service to perfect a determination letter request;

(4) In appropriate cases, requesting relief under § 7805(b) in the manner provided in section 12.04 of this revenue procedure; and

(5) Exhausting all administrative appeals available within the Service pursuant to section 9 of this revenue procedure.

An organization will not have exhausted its administrative remedies by completing the steps in this section 10.05 if the organization submitted Form 1023-EZ but was not eligible to submit Form 1023-EZ, as described in section 6.05(1)-(2) of this revenue procedure.

.06 An organization will in no event be deemed to have exhausted its administrative remedies prior to the earlier of—

(1) the completion of all reasonable steps to secure a determination from the Service, including the applicable steps in section 10.05 of this revenue procedure, and the issuance by the Service by certified or registered mail of a final determination letter; or

(2) the expiration of the 270-day period described in § 7428(b)(2) in a case where the Service has not issued a final determination letter, and the organization has taken, in a timely manner, all reasonable steps to secure a determination letter as provided in section 10.05 of this revenue procedure. The 270-day period referred to in § 7428(b)(2) will not be considered to have started

January 3, 2023 292 Bulletin No. 2023–1

prior to the date a completed application is submitted to the Service. If the Service requests additional information from an organization, the period of time beginning on the date the Service requests additional information until the date the information is submitted to the Service will not be counted for purposes of the 270-day period referred to in § 7428(b)(2).

Service must have .07 The steps described in section 10.05 of this revenue procedure will not be considered reasonable time to act on an completed until the Service has had a reasonable time to act upon a protest/appeal. appeal or protest

SECTION 11. FAVORABLE DETERMINATION LETTERS

Reliance on determination letter

.01 A taxpayer ordinarily may rely on a favorable determination letter received from the Service, regardless of the format of request submitted, subject to the conditions and limitations described in this section 11.

Limitations on reliance .02

(1) Will not apply to another taxpayer . A taxpayer may not rely on, use, or cite as precedent a determination letter issued to another taxpayer. See § 6110(k)(3).

(2) Material change in facts . A determination letter may not be relied upon by the organization submitting the request if there is a material change in facts. For a determination letter on taxexempt status, a material change includes a change in the character, the purpose, or the method of operation of the organization that is inconsistent with the organization’s tax-exempt status. See section 12.01 of this revenue procedure.

(3) Inaccurate information on request . A determination letter issued to an organization that submitted a request in accordance with this revenue procedure may not be relied upon by the organization submitting the request if it was based on any omission or inaccurate material information submitted by the organization. Inaccurate material information includes an incorrect representation or attestation as to the organization’s organizational documents, the organization’s exempt purpose, the organization’s conduct of prohibited and restricted activities, or the organization’s eligibility to file Form 1023-EZ. See section 12.01 of this revenue procedure.

(4) Change in law . A change in law may affect reliance. See section 12.01 of this revenue procedure.

Post-determination review .03

(1) Determination letters may be post-reviewed . Determination letters may be reviewed by EO Determinations Quality Assurance to assure uniform application of the statutes, tax treaties, regulations, court opinions, or guidance published in the Internal Revenue Bulletin.

(2) Procedures for addressing determination letters reviewed and found to have been issued in error . If upon post-determination review EO Determinations Quality Assurance concludes, based on the information contained in the existing application file, that a determination letter

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SECTION 12. REVOCATION OR MODIFICATION OF A DETERMINATION LETTER

Appeal and conference procedures in the case of revocation or modification of tax-exempt status letter

Revocation or modification of a determination letter may be retroactive

issued by EO Determinations was issued in error, the matter will be referred to EO Examinations for consideration.

.01 In general . A determination letter may be revoked or modified—

(1) by a notice to the taxpayer to whom the determination letter was issued;

(2) by enactment of legislation or ratification of a tax treaty;

(3) by a decision of the Supreme Court of the United States;

(4) by the issuance of temporary or final regulations;

(5) by the issuance of a revenue ruling, revenue procedure, or other statement published in the Internal Revenue Bulletin; or

(6) automatically, by operation of § 6033(j), for failure to file a required annual return or notice for three consecutive years.

Note : If an organization no longer qualifies under the Code section for which it originally applied for recognition of exemption, then the determination letter will be revoked, rather than modified.

.02 In the case of a revocation or modification of a determination letter described in section 9.02 of this revenue procedure, the procedures to protest/appeal the revocation or modification are generally the same as set out in section 9 of this revenue procedure. However, organizations revoked under § 6033(j) will not have an opportunity for consideration by the Independent Office of Appeals.

.03 The revocation or modification of a determination letter may be retroactive if—

(1) there has been a change in the applicable law;

(2) the organization omitted or misstated material information. A misstatement of material information includes an incorrect representation or attestation as to the organization’s organizational documents, the organization’s exempt purpose, the organization’s conduct of prohibited and restricted activities, or the organization’s eligibility to file Form 1023-EZ;

(3) the organization operated in a manner materially different from that originally represented in an application for recognition of exemption; or

(4) in the case of an organization to which § 503 applies, the organization engaged in a prohibited transaction with the purpose of diverting corpus or income of the organization from its exempt purpose and such transaction involved a substantial part of the corpus or income of such organization.

January 3, 2023 294 Bulletin No. 2023–1

Organization may request that retroactivity be limited under § 7805(b)

Effective date of revocation or modification of a determination letter on tax- exempt status

If a determination letter is revoked or modified by a letter with retroactive effect, the letter will, except in fraud cases, state the grounds on which the determination letter is being revoked or modified and explain the reasons why it is being revoked or modified retroactively.

.04 An organization may seek relief from retroactive revocation or modification of a determination letter under § 7805(b). A request for relief under § 7805(b) must be in writing and must be submitted to the agent or specialist assigned to the case. The request for relief under § 7805(b) must be submitted before issuance of the final adverse determination letter.

(1) Form of request for relief . An organization’s request to limit the retroactive effect of the revocation or modification of the determination letter must—

(a) state that it is being made under § 7805(b);

(b) state the relief sought;

(c) explain the reasons and arguments in support of the relief sought; and

(d) include any documents bearing on the request.

(2) Notice of denial of request for relief . If the request for relief under § 7805(b) is denied, the organization will be notified in writing of the denial.

(3) Organization must exhaust its administrative remedies . If an organization seeks declaratory judgment under § 7428 in response to a retroactive revocation or modification, to preserve judicial review of a claim for relief under § 7805(b), the organization must follow the steps in this revenue procedure in order to have exhausted its administrative remedies with respect to its request under § 7805(b). If the organization does not complete the applicable steps, the organization will not have exhausted its administrative remedies as required by § 7428(b)(2) with respect to its request for § 7805(b) relief, and will thus be precluded from obtaining § 7805(b) relief in any declaratory judgment it seeks under § 7428.

If the organization has requested § 7805(b) relief, the organization’s administrative remedies with respect to its § 7805(b) request will not be considered exhausted until the Service has had a reasonable amount of time to act upon the request.

.05 Effective date of revocation or modification .

(1) If the organization omitted or misstated material information in a request, revocation or modification will be effective as of the effective date of the determination letter issued in response to the request.

(2) If there is a material change in facts, inconsistent with the conclusion of a determination letter, revocation or modification will ordinarily take effect as of the date of such material change.

(3) If a determination letter was issued in error or is no longer in accord with the Service’s position and § 7805(b) relief is granted ( see section 12.04 of this revenue procedure), ordinarily,

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SECTION 13. DISCLOSURE OF APPLICATIONS AND DETERMINATION LETTERS INCLUDING THAT OF FOUNDATION STATUS

Determination letter will be disclosed under §§ 6104 or 6110 depending on the type of request and the type of determination letter issued

Disclosure of applications, supporting documents, and favorable determination letters under § 6104

the revocation or modification will be effective not earlier than the date on which the Service modifies or revokes the original determination letter.

.01 Sections 6104 and 6110 provide rules for the disclosure of requests, including forms, supporting documents, and determination letters issued in response to requests.

(1) A favorable determination letter issued in response to an application for recognition of exemption from Federal income tax under §§ 501 or 521, as well as certain determination letters regarding foundation status are disclosed under § 6104. Determination letters that an applicant organization is exempt from Federal income tax and letters or documents issued by the Service that an organization is or is not a private foundation, or described in §§ 509(a), 4940(d) (2), 4942(j)(3), or 4943(f) are disclosed under § 6104.

(2) Other determination letters are disclosed under § 6110 . Any determination letter that is not disclosed under § 6104 is disclosed under § 6110. This includes proposed and final denial of tax-exempt status when such denial becomes final, advance approval of grant making procedures described in § 4545(g), advance approval of certain set-asides described in § 4942(g)(2), advance approval of voter registration activities described in § 4945(f), and advance approval of an unusual grant per Rev. Proc. 2018-32, 2018-23 IRB 739.

(3) Whether other determination letters are disclosed under §§ 6104 or 6110 will vary based on the type of determination.

.02 If a favorable determination letter is issued in response to an application for recognition of exemption from Federal income tax under §§ 501 or 521, the application form, any supporting documents, and any determination letter issued in response to the application (including a proposed adverse determination letter) are available for public inspection upon request under § 6104(a)(1). In addition, letters or documents issued by the Service that an organization is or is not a private foundation, or described in §§ 509(a), 4940(d) (2), 4942(j)(3), or 4943(f) are disclosed under § 6104. However, there are certain limited disclosure exceptions for a trade secret, patent, process, style of work, or apparatus, if the Service determines that the disclosure of the information would adversely affect the organization.

(1) Favorable determination letters issued in 2014 and later are available on Tax Exempt Organization Search at www.irs.gov/teos. Additionally, the public can request information available for public inspection under § 6104(a)(1) by submitting Form 4506–B, Request for a Copy of Exempt Organization IRS Application or Letter, or by using such other form or procedure as the IRS may specify . Organizations should ensure that applications and supporting documents do not include unnecessary personal identifying information (such as bank account numbers or social security numbers) that could result in identity theft or other adverse consequences if publicly disclosed.

(2) The tax-exempt organization is required to make its application for recognition of exemption, supporting documents, and any determination letter issued in response to the application (including a proposed adverse determination letter) available for public inspection without charge. For more

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Disclosure of determination letters under § 6110

Taxpayer may protest disclosure under § 6110 of certain information in a determination letter

Taxpayer may request delay of public inspection under § 6110

Disclosure to state officials when the Service refuses to recognize tax-exempt status under § 501(c)(3)

information about the tax-exempt organization’s disclosure obligations, see Publication 557, Tax- Exempt Status for Your Organization.

.03 The Service is required to make any determination letter that is not disclosed under § 6104, including adverse determinations of tax-exempt status, available for public inspection under § 6110. Upon issuance of the final adverse determination letter to an organization, both the proposed adverse determination letter and the final adverse determination letter will be released pursuant to § 6110. In addition, determinations of advance approval of grant making procedures described in § 4945(g), advance approval of certain set-asides described in § 4942(g)(2), advance approval of voter registration activities described in § 4945(f), and advance approval of an unusual grant per Rev. Proc. 2018-32 will be released pursuant to § 6110.

The written determination and background file documents are made available to the public after the deletion of names, addresses, and any other information that might identify the taxpayer. See § 6110(c) for other specific disclosure exemptions.

.04 If the determination letter is disclosed under § 6110, the determination letter will enclose Notice 437, Notice of Intention to Disclose, and redacted copies of the final and proposed adverse determination letters. Notice 437 provides procedures to follow and instructions if the organization disagrees with the deletions proposed by the Service.

Within 20 calendar days after the Service receives the response to the Notice 437, the Service will mail to the taxpayer its final administrative conclusion regarding the deletions to be made. The taxpayer does not have the right to a conference to resolve any disagreements concerning material to be deleted from the text of the determination letter. However, these matters may be taken up at a conference with the Independent Office of Appeals that is otherwise scheduled regarding the request, if available under section 9 of this revenue procedure.

.05 After receiving the Notice 437, but within 60 calendar days after the date of notice, the taxpayer may send a request for delay of public inspection under either § 6110(g)(3) or (4). The request for delay must be sent to the Service office indicated on the Notice 437. The request for delay under § 6110(g)(4) must contain a statement from which the Commissioner of Internal Revenue may determine that there are good reasons for the delay.

Note : Section 6110(l)(1) states that § 6110 disclosure provisions do not apply to any matter to which § 6104 applies. Therefore, disclosure of determination letters and related background file documents dealing with an approved application for recognition of exemption under § 501(a) as an organization described in § 501(c) or (d), or a notice of status as a political organization under § 527 (covered by § 6104) may not be protested or delayed by request of the taxpayer.

.06 The Service may notify the appropriate state officials of a refusal to recognize an organization as tax-exempt under § 501(c)(3). See § 6104(c). The notice to the state officials may include a copy of a proposed or final adverse determination letter the Service issued to the organization. In addition, upon request by the appropriate state official, the Service may make available for inspection and copying the application for recognition of exemption and other information relating to the Service’s determination on tax-exempt status.

The Service does not consider the non-acceptance of an application under section 4.10 of this revenue procedure to be a refusal to recognize an organization as tax-exempt.

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Disclosure to state officials of information about § 501(c)(3) applicants