Exceptions

(1) Section 4958(e) excludes private foundations (as defined in Section 509(a)) from

the definition of an ATEO. See also Treas. Reg. 53.4958-2(a)(2)(i).

(2) Additionally, governmental units or affiliates of governmental units are not ATEOs

if they are:

a. Exempt from (or not subject to) taxation without regard to Section 501(a) or

b. Relieved from filing annual returns under Treas. Reg. 1.6033-2(g)(6)

See Treas. Reg. 53.4958-2(a)(2)(ii).

(3) A foreign organization, recognized by the Internal Revenue Service or by

treaty, that receives substantially all of its support (other than gross investment income) from sources outside of the United States, is not an ATEO. See Treas. Reg. 53.4958-2(b)(2).