0426 Publ 5729 (PDF)

Official source: IRS Forms, Instructions & Publications (https://www.irs.gov/pub/irs-pdf/p5729.pdf), retrieved 2026-10-03. U.S. Government work (17 U.S.C. § 105).

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This document is not an official pronouncement of the law or the position of the Service and cannot be used, cited, or relied upon as such. This guide is current through the revision date. Changes after the revision date may affect the contents of this document and users should consider any subsequent resources to ensure technical accuracy. All references to “Section” in this document refer to the Internal Revenue Code of 1986, as amended, unless specifically noted otherwise. The taxpayer names and addresses shown in examples within this publication are fictitious.

Technical Guide Revision Date: 4/22/2026

Publication 5729 (Rev. 04-2026) Catalog Number 93656U Department of the Treasury Internal Revenue Service www.irs.gov

(1) Welcome to the Exempt Organizations Technical Guides (TGs). The series of

TGs serves as a research aid and training tool for Exempt Organizations (EO) specialists reviewing exemption applications, conducting examinations, and completing adverse rulings, terminations, and revocations. Exempt organizations and the general public will also use these TGs as educational tools and research aids.

(2) The material in the TGs does not extend or modify published authority and

should not be cited either as precedent or authority in deciding cases.

(1) Exempt Organizations Rulings and Agreements (EO R&A) previously

maintained technical exempt organizations determinations manuals in the Internal Revenue Manual (IRM) sections 7.25, 7.26, and 7.27.

(2) Exempt Organizations Examinations (EOE) previously maintained information

on audit guidelines and techniques for exempt organizations in IRM 4.76.

(3) The Internal Revenue Service (IRS) obsoleted the above-mentioned IRMs to

remove technical guidance from the IRM by December 2019, reserving the Internal Revenue Manual for procedural guidance.

(4) To retain the information from IRMs 7.25, 7.26, and 7.27, EO R&A created

Technical Resource Guides (TRGs) and posted them internally on the EO Knowledge Network Library.

(5) To retain the information from IRM 4.76, EOE created Audit Technique Guides

(ATGs), and posted them on IRS.gov.

(6) IRS’s Knowledge Management is updating and consolidating the TRGs and

ATGs into TGs. As they publish TGs on particular topics, they retire the related ATGs and TRGs.

(7) IRS began publishing TGs on September 1, 2021, and will continue publishing

TGs until all the topics in the ATGs, TRGs, and other relevant tax-exempt status matters are covered in TGs. The Technical Guide List exhibit in this TG lists the published and planned TG topics, current as of the date of this publication.

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(1) This section details commonly used acronyms and terms featured in the TGs.

(1) Precedential: Court decisions or administrative rulings (such as revenue

rulings) which are authoritative or controlling in subsequent cases involving identical or substantially similar facts and legal issues. For example, a case decided by the Fourth Circuit has controlling authority over subsequent District Court cases within the jurisdiction of the Fourth Circuit when the facts and legal issues are identical or substantially similar. A case decided by the Supreme Court has controlling authority over all other courts and its rulings must be followed by all taxpayers, as the Supreme Court is the highest jurisdiction in the United States.

(2) Non-precedential: Decisions or rulings that do not have controlling authority,

but that may be persuasive in deciding subsequent cases. Private letter rulings, for example, are non-precedential, as such rulings do not control the decision in subsequent cases involving a different taxpayer. However, a decisionmaker may be persuaded by a private letter ruling in arriving at a subsequent decision involving a different taxpayer if the facts and legal issues are identical or substantially similar.

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(1) Throughout the TGs, citations of law are provided as guidance on the

government’s position on specific activities and actions of the exempt organization.

(2) Legal authorities can be accessed through databases and subscription

services.

(3) While the Internal Revenue Code (IRC) is the primary source of federal tax law,

there are many additional sources. For example, there are both administrative and judicial interpretations as well.

(4) Administrative materials include Treasury Regulations, revenue rulings, and

revenue procedures.

(5) Federal courts that interpret federal tax law include trial courts, appellate courts,

and the United States Supreme Court.

(6) Committee reports are useful tools in determining congressional intent behind

certain tax laws and helping examiners apply the law properly. They can be particularly helpful regarding novel issues where the plain language of the IRC is ambiguous, there is little to no judicial precedent, and when the Treasury has not published regulations.

(1) The Sixteenth Amendment (Amendment XVI) to the United States Constitution

was ratified on February 3, 1913. It is the Constitutional authority for assessing and collecting federal income tax. Subsequently, Congress enacted the Revenue Act of 1913 on October 3, 1913. Since then, Congress has made provisions for the exemption from income tax.

(1) TGs contain citations to law and other guidance.

(2) IRM 4.10.7.2, Researching Tax Law, (and the sections thereunder) and IRM

4.70.13.5, Researching Federal Tax Law, provide information on citing law, the order of citations, and weight of legal authorities.

(3) IRM 7.28.4.3, General Guidelines for Drafting Letters Subject to Section 6110,

(or its successor) provides general guidelines for drafting letters subject to Section 6110 and discusses the order of legal authorities.

(1) The Internal Revenue Code (Title 26 of the United States Code) is the

foundation for all tax law. When changes are made to the IRC, the old language is deleted, and new language is inserted. Originally codified in 1939 as the Internal Revenue Code of 1939, it was recodified in 1954 and 1986. It is now

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referred to as the Internal Revenue Code of 1986. The IRC is divided into subtitles, chapters, subchapters, parts, subparts, sections, subsections, paragraphs, subparagraphs, and clauses.

(2) Treasury Regulations (Title 26 of the Code of Federal Regulations) interpret

the IRC and, where specifically authorized by Congress, supply additional legal requirements to those in an IRC section. They often contain examples and computations that assist in understanding the statutory language. Regulations are issued as proposed, temporary, and final. References to specific regulations throughout the TGs are notated as Treas. Reg.

(3) Revenue rulings provide guidance on the IRS’s position on specific activities

and actions. Many exempt organization revenue rulings can be accessed at www.irs.gov/charities-non-profits/exempt-organizations-revenue-rulings. References made to specific revenue rulings throughout the TGs are notated as Rev. Rul.

(4) Revenue procedures are IRS pronouncements that deal with procedural

aspects of the law. Many exempt organizations revenue procedures can be accessed at www.irs.gov/charities-non-profits/exempt-organization-revenueprocedures. References to specific revenue procedures throughout the TGs are notated as Rev. Proc.

(5) Rulings and procedures are published weekly in the Internal Revenue Bulletin

(I.R.B.) and semiannually in the Cumulative Bulletin (C.B.). The I.R.B. is the Internal Revenue Service Commissioner’s authoritative instrument to announce official IRS rulings and procedures and to publish Treasury Decisions, Executive Orders, Tax Conventions, legislation, court decisions, and other items of general interest.

(6) Notices are public pronouncements by the IRS that may contain guidance that

involves substantive interpretations of the IRC or other provisions of the law. Notices may be used to solicit public comments on issues under consideration, in connection with non-regulatory guidance, such as a proposed revenue procedure. A notice also can relate to proposed regulations which will not be published in the immediate future.

(7) Judicial decisions comprise an important source of tax law. Courts render

decisions on questions of fact and law.

a. Trial Court : There are three trial courts for tax adjudication in the United

States. These are the U.S. Tax Court, U.S. Court of Federal Claims, and the U.S. District Courts.

b. Appellate Court : Decisions may be appealed from the U.S. Tax Court

and the U.S. District Courts to the Court of Appeals in the taxpayer’s circuit. Appeals from the U.S. Court of Federal Claims are taken to the Court of Appeals for the Federal Circuit. A party who loses at an appellate level may petition the Supreme Court for a writ of certiorari to hear the case.

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c. U.S. Supreme Court : Decisions of the U.S. Courts of Appeal, including

the Court of Appeals for the Federal Circuit, may be appealed to the United States Supreme Court. The Supreme Court of the United States is the highest court of the land. In general, Supreme Court review is discretionary. The court only hears a limited number of tax cases.

(1) In St. David’s Health Care System. v. United States, the 5 ^th Circuit Court of

Appeals noted that “the courts generally accord significant weight to the determinations of the IRS in its revenue rulings.” 349 F.3d 232, 239 n.9 (5th Cir. 2003). Also, in Estate of McLendon v. Commissioner, 135 F.3d 1017, 1023 n.10, 1024 (5th Cir.1998), the Court stated, “[R]evenue rulings are generally given weight as expressing the studied view of the agency whose duty it is to carry out the statute,” but are “clearly less binding on the courts than treasury regulations or Code provisions...”.

(2) An Action on Decision (AOD) is a formal memorandum prepared by the IRS

Office of Chief Counsel that announces the future litigation position the IRS will take with regard to the court decision addressed by the AOD. The IRS’s AOD policy on federal court decisions decided in the taxpayers’ favor is described in the Chief Counsel Directives Manual CCDM 36.3.1 (03-14-2013), or its successor.

a. Acquiescence (acq.) occurs when the IRS accepts the decision and will

follow the ruling in all jurisdictions.

b. Non-acquiescence (nonacq.) occurs when IRS disagrees with the court

decision. The IRS is required to follow the precedent in the circuit where the decision was made, but it may otherwise hold its own position in all other circuits.

The IRS decision of acquiescence or non-acquiescence is published in the Cumulative Bulletin, and IRS agents are bound by the determinations.

(1) This Technical Guide and other TGs refer to non-precedential guidance. While

non-precedential guidance cannot be cited as precedent, it does, however, provide the government’s position on issues and assists with developing a fact pattern as well as application of the law to the facts of a case. The nonprecedential guidance presented in this TG includes committee reports, technical advice memoranda, private letter rulings, general counsel memoranda, and IRS publications.

(2) Committee reports state legislative intent as to a proposed bill. The Ways and

Means Committee in the House of Representatives and the Finance Committee in the Senate are responsible for tax legislation. In cases where the literal language of the IRC is ambiguous, committee reports are useful tools to determine congressional intent behind certain tax laws and to help apply the

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law properly. Reports from the Joint Committee on Taxation can be accessed at www.jct.gov.

(3) A technical advice memorandum (TAM) is technical advice prepared by

Associate Chief Counsel. A field office can request a TAM when the application of the law to the facts involved is unclear. The question must be on the interpretation and proper application of any legal authority, including legislation, tax treaties, court decisions, regulations, notices, revenue rulings, revenue procedures, or announcements to a specific set of facts concerning the treatment of an item in a tax period under examination or in Appeals. TAMs are requested on closed transactions rather than prospective or hypothetical transactions. A TAM can also be requested in connection with a taxpayer’s request for a determination letter on a matter within the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division, pursuant to Rev. Proc. 2026-1, 2026-1 I.R.B. 1 (updated annually).

Procedures on requesting TAMs are located in Rev. Proc. 2026-2, 2026-1 I.R.B. 119 (updated annually).

TAMS are written determinations and are available for public inspection at www.irs.gov/written-determinations.

(4) A private letter ruling (PLR) is a written statement issued to a taxpayer that

interprets and applies tax laws to the taxpayer’s specific set of facts. A PLR is issued to establish with certainty the federal tax consequences of a particular transaction before the transaction occurs or before the taxpayer files their return. A PLR is issued in response to a written request submitted by a taxpayer and is binding on the IRS if the taxpayer fully and accurately described the proposed transaction in the request and carries out the transaction as described. A PLR may not be relied on as precedent by other taxpayers or IRS personnel. PLRs are generally made public after all information has been removed that could identify the taxpayer to whom it was issued.

Procedures on how to request a letter ruling are located in Rev. Proc. 2026-1, 2026-1 I.R.B. 1 (updated annually).

Private letter rulings are written determinations and available for public inspection at www.irs.gov/written-determinations.

(5) A general counsel memorandum (GCM) is a legal memorandum from the

Office of Chief Counsel, prepared in connection with the review of certain proposed rulings, such as revenue rulings, private letter rulings, and technical advice memoranda. It contains legal analysis of substantive issues and can be helpful in understanding the reasoning behind a particular ruling and the Service’s response to similar issues in the future.

(6) IRS publications explain the law in plain language for taxpayers and their

advisors. They typically highlight changes in the law, provide examples illustrating IRS positions, and include worksheets. Publications are non-binding on the Service and do not necessarily cover all positions for a given issue.

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While a useful source of general information, publications should not be cited to sustain a position.

The IRS catalogs its publications publicly at www.irs.gov/forms-instructions and internally in the Published Products Catalog.

Publication 557, Tax-Exempt Status for Your Organization, discusses the rules and procedures for organizations seeking recognition of exemption from federal income tax under Section 501(a).

(1) This section describes how the TGs are organized.

(1) The TGs are organized in numerical order.

(2) TGs 1 through 29 generally discuss the subsections that correspond to the

Code subsection in their titles, such as:

a. TG 2: Single-Parent Title-Holding Corporations – IRC Section 501(c)(2),

b. TG 6: Business Leagues – IRC Section 501(c)(6), and

c. TG 13: Cemetery Companies – IRC Section 501(c)(13).

(3) TGs beginning with the number 3 discuss Section 501(c)(3) topics. For

example:

a. TGs 3-2 through 3-7 discuss Section 501(c)(3) purposes,

b. TGs 3-23 through 3-33 discuss Section 501(c)(3) foundation

classifications, and

c. TGs 3-40 and 3-41 discuss healthcare organizations.

(1) To search for a particular topic within a TG, open the TG, and use the Find

command (Ctrl + F) to open a search box to search for the keyword.

(2) For example:

a. While reading TG 59: Taxes on Foundation Failure to Distribute Income –

IRC Section 4942, you wish to understand the term taxable period .

b. Press Ctrl + F, and the search box will open.

c. Type the term taxable period in the search box, and press enter.

d. All instances of the term taxable period will be highlighted throughout the

document. You can navigate to each heading, page, or result where the phrase appears.

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(1) The table below contains the list of all published and proposed TGs. The table

is organized in numerical order.

(2) Published TGs are available on the webpage “Audit Technique Guides (ATGs)

and Technical Guides (TGs) for Exempt Organizations” on IRS.gov.

(3) This TG and table will be updated periodically to provide publishing and revision

dates of each TG. A blank publishing date indicates the TG has not yet been published.

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