Rev. Proc. 2024-5

.01 For purposes of this revenue procedure—

(1) The term “Service” means the Internal Revenue Service.

(2) The term “EO Rulings and Agreements” means the office in Exempt Organizations & Government Entities that is primarily responsible for up-front, customer-initiated activities such as determination letter requests, taxpayer assistance, and assistance to other Exempt Organizations & Government Entities offices. The EO Rulings and Agreements office includes the offices of EO Determinations and EO Determinations Quality Assurance.

(3) The term “EO Determinations” means the office in EO Rulings and Agreements of the Service that is primarily responsible for processing requests for determination letters.

(4) The term “Independent Office of Appeals” (Internal Revenue Service Independent Office of Appeals) means any office under the direction and control of the Chief of Appeals. The purpose of the Independent Office of Appeals is to resolve tax controversies, without litigation, on a fair and impartial basis. The Independent Office of Appeals is independent of EO Rulings and Agreements.

(5) The term “determination letter” means a written statement issued by EO Determinations or the Independent Office of Appeals in response to a request for the Service’s ruling on a question of tax-exempt status, foundation status, or other determination under the jurisdiction of the Director, EO Rulings and Agreements. This includes a written statement issued by EO Determinations or an office of the Independent Office of Appeals on the basis of advice secured from the Office of Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes) pursuant to the procedures prescribed in Rev. Proc. 2024-2, this Bulletin. A determination letter applies the principles and precedents previously announced to a specific set of facts.

(6) The term “request” means the written submission that an organization uses to obtain a determination letter in accordance with the requirements of this revenue procedure.

(7) The term “application” means a request for recognition of exemption from Federal income tax under §§ 501 or 521.

.02 This revenue procedure is updated annually but may be modified or amplified during the year.

.01 This revenue procedure updates Rev. Proc. 2023-5, 2023-1 IRB 265, which deals with procedures for issuing Exempt Organization determination letters. Notable changes to Rev. Proc. 2023-5 that appear in this year’s update include—

(1) Edits were made throughout to reflect modifications made by Rev. Proc. 2023-12, 2023-17 IRB 768 (2023), which provided information and procedures on the electronic Form 8940, Request for Miscellaneous Determination.

(2) Section 3.01(1) of this revenue procedure was updated with a note to explain that EO Determinations will now issue a determination letter to an organization currently recognized as described in § 501(c)(3) that seeks recognition as described in a different paragraph of § 501(c). Concurrently, section 3.02 of this revenue procedure was revised to remove this determination request from being within the circumstances in which determination letters are not issued.

(3) Section 16 of this revenue procedure was updated to explain that this revenue procedure supersedes Rev. Proc. 2023-12.

(4) Editorial changes were made throughout including minor non-substantive changes, dates, and cross-references. Citations to other revenue procedures were changed to reflect the appropriate annual revenue procedures.

.02 This revenue procedure supplements the following revenue procedures—

(1) Rev. Proc. 80-27, 1980-1 CB 677, which sets forth procedures under which tax-exempt status may be recognized on a group basis for subordinate organizations affiliated with and under the general supervision and control of a central organization.

(2) Rev. Proc. 72-5, 1972-1 CB 709, which provides information for religious and apostolic organizations seeking recognition of exemption under § 501(d).

(3) Rev. Proc. 2015-17, 2015-7 IRB 599, which provides information regarding procedures for organizations described in § 501(c)(29).

(4) Rev. Proc. 2014-11, 2014-3 IRB 411, which sets forth procedures for reinstating the tax-exempt status of organizations that have had their tax-exempt status automatically revoked under § 6033(j)(1).

(5) Rev. Proc. 2016-41, 2016-30 IRB 165, which sets forth the procedure for an organization to notify the Service, consistent with § 506, that it is operating as an organization described in § 501(c)(4).

(6) Rev. Proc. 2018-15, 2018-9 IRB 379, which describes the circumstances under which a domestic § 501(c) organization that changes its form or place of organization will not be required to file a new exemption application and such an organization’s reporting requirements.

.03 Forms that are not requests for a determination. Certain organizations are required to submit the following forms, but such forms are not requests for a determination and, thus, are not subject to the procedures in this revenue procedure.

(1) Form 3115, Application for Change in Accounting Method. A tax-exempt organization described in § 501(c) that wants to change its method of accounting for computing taxable income must follow the procedures that are generally applicable to all taxpayers for requesting the Commissioner’s consent to an accounting method change, including, if applicable, filing a Form 3115, Application for Change in Accounting Method (see, e.g., Rev. Proc. 2015-13, 2015-5 IRB 419, as modified and clarified by Rev. Proc. 2021-34, 2021-35 IRB 337 (or any successor)). A tax-exempt organization described in § 501(c) must request consent to change its method of accounting for computing taxable income only if the tax-exempt organization has previously adopted a method of accounting for computing taxable income for the item(s) being changed. A taxpayer generally adopts a method of accounting in the first year in which an item is taken into account in computing taxable income. Thus, a tax-exempt organization that has adopted a method of accounting for an item of income or expense from an unrelated trade or business must generally request consent in order to change its method of accounting for reporting the item in any subsequent year, regardless of whether the gross income from the unrelated trade or business is greater than or equal to $1,000 in such subsequent year. However, a tax-exempt organization that has not yet adopted a method of accounting for an item does not have to request consent to change the methodology of reporting the item. Thus, a tax-exempt organization that is required to file a Form 990-T, Exempt Organization Business Income Tax Return (and proxy tax under section 6033(e)) solely due to owing a § 6033(e)(2) proxy tax but has not yet adopted a method of accounting for an item of income or expense does not have to request consent to change its methodology for reporting such item on its Form 990-T (or Form 990, as applicable). See Rev. Proc. 2015-13, as modified and clarified by Rev. Proc. 2021-34, and Section 9 of Rev. Proc. 2024-1, this Bulletin for procedures applicable to taxpayers, including tax-exempt organizations, for requesting changes in method of accounting.

(2) Form 8871, Political Organization Notice of Section 527 Status. A political party, a campaign committee for a candidate for Federal, state, or local office, and a political action committee are all political organizations subject to tax under § 527. To be tax-exempt, a political organization may be required to notify the Service that it is to be treated as a § 527 organization by electronically filing Form 8871, Political Organization Notice of Section 527 Status. See www.irs.gov (“Tax Information for Political Organizations”).

(3) Form 8976, Notice of Intent to Operate Under Section 501(c)(4). An organization described in § 501(c)(4) must, no later than 60 days after the date the organization is established, notify the Service that it is operating as an organization described in § 501(c)(4) by submitting a completed Form 8976, Notice of Intent to Operate Under Section 501(c)(4) and the accompanying user fee. See www.irs.gov (“Electronically Submit Your Form 8976, Notice of Intent to Operate Under Section 501(c)(4)”).

.01 EO Determinations issues determination letters on the following matters—

(1) Initial qualification for tax-exempt status of organizations described in §§ 501 or 521 (including reinstatement of organizations that have been automatically revoked pursuant to § 6033(j) and subordinate organizations included in a group exemption letter that have been revoked pursuant to that provision). See Rev. Proc. 2018-15 for procedures applicable to an entity changing its form or state of organization;

Note: EO Determinations will issue a determination letter to an organization currently recognized as described in § 501(c)(3) that seeks recognition as described in a different paragraph of § 501(c) if the organization establishes that, as of the submission date of its application, (i) it has distributed its assets to another § 501(c)(3) organization or government entity and (ii) it otherwise meets the requirements for the § 501(c) status requested. This determination letter will only be effective from the submission date of the new application. This also applies to an organization automatically revoked under § 6033(j) that was described in § 501(c)(3) that seeks retroactive reinstatement as described in a different paragraph of § 501(c).

(2) Updated tax-exempt status letter (affirmation letter) to reflect changes to an organization’s name or address, or to replace a lost tax-exempt status letter;

(3) Classification or reclassification of private foundation status, including whether an organization is—

(a) A private foundation;

(b) A public charity described in §§ 509(a)(1) and 170(b)(1)(A) (other than clauses (v), (vii), and (viii));

(c) A public charity described in § 509(a)(2) or (4);

(d) A public charity described in § 509(a)(3), whether such organization is described in § 509(a)(3)(B)(i), (ii), or (iii) (supporting organization type), and whether or not a Type III supporting organization is functionally integrated;

(e) A private operating foundation described in § 4942(j)(3); or

(f) An exempt operating foundation described in § 4940(d)(2).

(4) Recognition of unusual grants to certain organizations under §§ 170(b)(1)(A)(vi) and 509(a)(2);

(5) Requests for relief under Treas. Reg. § 301.9100-1 in connection with applications for recognition of exemption;

(6) Terminations of private foundation status under § 507(b)(1)(B);

(7) Advance approval of certain set-asides described in § 4942(g)(2);

(8) Advance approval under § 4945(g) of organizations’ grant making procedures;

(9) Advance approval of voter registration activities described in § 4945(f);

(10) Whether an organization is exempt from filing annual information returns under § 6033, as provided in Treas. Reg. § 1.6033-2(g)(1), Rev. Proc. 95-48, 1995-2 CB 418, and Rev. Proc. 96-10, 1996-1 CB 577;

(11) Determination of foundation status under § 509(a)(3) of non-exempt charitable trusts described in § 4947(a)(1); and

(12) Government entity voluntary termination of § 501(c)(3) recognition (must include documentation that the organization is not subject to income tax, other than under § 501(a)).

.02 The Service may decline to issue a determination letter when appropriate in the interest of sound tax administration or on other grounds whenever warranted by the facts or circumstances of a particular case. In addition, the Service will not issue a determination letter in response to any request if—

(1) the request involves an issue under the jurisdiction of the Office of Associate Chief Counsel described in Rev. Proc. 2024-1;

(2) the same issue involving the same taxpayer, or a related taxpayer, is pending in a case in litigation or before the Independent Office of Appeals. If the issue in litigation involving the same taxpayer or a related taxpayer is not the taxpayer or a related taxpayer’s qualification as a tax-exempt entity (such as a declaratory judgment action under § 7428), the Service may issue a determination letter on tax-exempt status after consultation with counsel;

(3) the determination letter is requested by an industry, trade association, or similar group on behalf of individual taxpayers within the group (other than subordinate organizations covered by a group exemption letter);

(4) the determination letter is requested by an organization seeking to qualify under § 501(c)(5) the purpose of which is directed to the betterment of conditions of those engaged in the pursuits of labor, agriculture, or horticulture, the improvement of the grade of their products, and the development of a higher degree of efficiency in their respective occupations relating to an activity involving controlled substances (within the meaning of schedule I and II of the Controlled Substances Act, 21 USC § 801 et seq.) that is prohibited by Federal law regardless of its legality under the law of the state in which such activity is conducted;

(5) the determination letter is requested by an organization seeking to qualify under § 501(c)(6) the purpose of which is directed to the improvement of business conditions of one or more lines of business relating to an activity involving controlled substances (within the meaning of schedule I and II of the Controlled Substances Act, 21 USC § 801 et seq.) that is prohibited by Federal law regardless of its legality under the law of the state in which such activity is conducted;

(6) the request is based on alternative plans of proposed transactions or on hypothetical situations. An application based on proposed activities that satisfies section 6.07(2) of this revenue procedure (related to recognizing tax-exempt status in advance of actual operations) is not considered to be based on hypothetical situations;

(7) an organization currently recognized as exempt under § 501(c) of the Code seeks a new determination letter confirming that the organization is still recognized under the same Code section under the current facts;

(8) an organization seeks a determination of foundation status that is identical to its current foundation status as determined by EO Determinations. For example, an organization that is already recognized as described in §§ 509(a)(1) and 170(b)(1)(A)(ii) as a school generally will not receive a new determination letter that it is still described in §§ 509(a)(1) and 170(b)(1)(A)(ii) under the current facts;

(9) an organization currently recognized as exempt under § 501(c) (other than a government entity as specified in section 3.01(12) of this revenue procedure) requests a determination to relinquish its tax-exempt status under § 501(a);

(10) a domestic organization currently recognized as exempt under § 501(c) seeks a determination letter but is not required to reapply because it has changed its form or state of organization in accordance with the requirements in Rev. Proc. 2018-15. An organization may request an affirmation letter to reflect changes to its name or address as provided in section 3.01(2) of this revenue procedure; or

(11) an organization applies for a group exemption letter. Notice 2020-36, 2020-21 IRB 840, provides that the Service will not accept any requests for group exemption letters until publication of the final revenue procedure described in the Notice or other guidance in the Internal Revenue Bulletin.

Note: In some circumstances, an organization may seek a letter ruling from the Office of Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes) on a specific legal issue, including whether an activity furthers an organization’s exempt purpose. See Rev. Proc. 2024-1 and Rev. Proc. 2024-3, this Bulletin.

.03 EO Determinations generally issues determination letters only if the question presented is answered by a statute, tax treaty, regulation, court opinion, or guidance published in the Internal Revenue Bulletin. At any time during the course of consideration by EO Determinations, if either EO Determinations or the organization believes that its case involves an issue on which there is no published precedent, or there has been non-uniformity in the Service’s handling of similar cases, EO Determinations may decide to seek, or the organization may request that EO Determinations seek, technical advice from the Office of Associate Chief Counsel with subject matter jurisdiction over the issue. See Rev. Proc. 2024-2.

.04 Determination letters issued under this revenue procedure are not generally reviewed by any other office outside of EO Rulings and Agreements before they are issued. For post-determination review of determination letters by EO Determinations Quality Assurance, see section 11.03 of this revenue procedure.

.05 A determination letter is issued based solely upon the facts, attestations, and representations contained in the administrative record.

(1) The taxpayer is responsible for the accuracy of any factual representations or attestations contained in the request.

(2) Any oral representation of additional facts, or modification of facts, as represented or alleged in the request, must be reduced to writing and signed by the taxpayer under a penalty of perjury statement, in accordance with section 4.06 of this revenue procedure.

(3) The failure to disclose a material fact or misrepresentation of a material fact on the request, which includes an incorrect representation or attestation, may adversely affect the reliance that the organization submitting the request would otherwise obtain through issuance by the Service of a favorable determination letter. See section 11.02 of this revenue procedure for additional information.

.01 This section explains the general instructions for requesting determination letters. In addition to these general instructions, specific procedures apply to requests submitted by letter (as described in section 5 of this revenue procedure) and to requests for determinations submitted on Form 8940, Request for Miscellaneous Determination (as described in section 7 of this revenue procedure).

.02 Which form, if any, should be used for the request? Some requests are made by letter and some requests are made by submitting a specific form.

(1) Form 1023 application. An organization seeking recognition of exemption under § 501(c)(3) (including an organization to which § 501(e), (f), (k), (n), (q), or (r) is applicable) must electronically submit a completed Form 1023 at www.pay.gov. In the case of an organization that provides credit counseling services, see § 501(q). In the case of an organization that is a hospital and is seeking tax-exempt status under § 501(c)(3), see § 501(r). Notwithstanding the foregoing, eligible organizations may seek recognition of exemption under § 501(c)(3) by submitting a completed Form 1023-EZ, as described in section 6.06(2) of this revenue procedure, rather than by submitting Form 1023. For additional information about the electronic submission process, refer to Form 1023 and its Instructions.

(2) Form 1023-EZ application. An eligible organization, as described in section 6.05 of this revenue procedure, may, but is not required to, seek recognition of exemption under § 501(c)(3) by submitting a completed electronic Form 1023-EZ.

Alternatively, an eligible organization may seek tax-exempt status under § 501(c)(3) by submitting a completed Form 1023, as described in section 6.06(1) of this revenue procedure.

For additional information about the electronic submission process, refer to Form 1023-EZ and its instructions.

(3) Form 1024 application. An organization seeking a determination letter from the Service recognizing tax-exempt status under § 501(c)(2), (5)-(19), (21)-(23), (25)-(29), or (d) must electronically submit a completed Form 1024, Application for Recognition of Exemption Under Section 501(a) or Section 521. An organization seeking a determination letter from the Service recognizing tax-exempt status under § 521 may also electronically submit Form 1024.

Organizations that seek to operate under § 501(c)(9) or (17) must apply for recognition of exemption. See § 505. Other organizations may choose to seek a determination letter recognizing tax-exempt status under § 501 by filing Form 1024, but are not required to do so except in certain cases (see, for example, § 6033(j)(2) regarding failures to file annual information returns or annual electronic notifications required under § 6033(a) or (i)).

(4) Form 1024-A application. An organization seeking a determination letter from the Service recognizing tax-exempt status under § 501(c)(4) must electronically submit a completed Form 1024-A and the accompanying user fee at www.pay.gov. In the case of an organization that provides credit counseling services and seeks recognition of exemption under § 501(c)(4), see § 501(q).

Section 501(c)(4) organizations may choose to seek a determination letter recognizing tax-exempt status under § 501(c)(4) by filing Form 1024-A, but are not required to do so except in certain cases (see, for example, § 6033(j)(2) regarding failures to file annual information returns or annual electronic notifications required under § 6033(a) or (i)).

Submission of Form 1024-A does not relieve an organization of the requirement to submit Form 8976, Notice of Intent to Operate Under Section 501(c)(4). For additional information about the electronic submission process, refer to Form 1024-A and its Instructions.

(5) Form 1028 application. An organization seeking recognition of exemption under § 521 may submit a completed Form 1028, Application for Recognition of Exemption Under Section 521 of the Internal Revenue Code, along with Form 8718. Note that an organization seeking a determination letter from the Service recognizing tax-exempt status under § 521 may instead electronically submit the revised Form 1024.

(6) Form 8940 request for miscellaneous determination. An organization requesting certain miscellaneous determinations or providing certain notices to the IRS must electronically submit a completed Form 8940, Request for Miscellaneous Determination, at www.pay.gov. The Form 8940, Request for Miscellaneous Determination, is used for the following determination letter requests and notices—

(a) Advance approval of certain set-asides described in § 4942(g)(2);

(b) Advance approval of voter registration activities described in § 4945(f);

(c) Advance approval of scholarship procedures described in § 4945(g);

(d) Exception from Form 990 filing requirements;

(e) Advance approval that a potential grant or contribution constitutes an unusual grant;

(f) Change in Type (or initial determination of Type) of a § 509(a)(3) organization;

(g) Reclassification of foundation status, including a voluntary request from a public charity for private foundation status;

(h) Termination of private foundation status under § 507(b)(1)(B)—advance ruling request;

(i) Notice Only – Termination of private foundation status under § 507(b)(1)(B);

(j) Termination of private foundation status under § 507(b)(1)(B)—60-month period ended;

(k) Voluntary termination of § 501(c)(3) recognition by a government entity; and

(l) Canadian registered charities: listing on Pub. 78 Data and/or public charity classification.

(7) Letter request.

(a) Letter applications. A central organization that has previously received or is concurrently requesting recognition of its own tax-exempt status can request a group exemption letter by submitting a letter application along with Form 8718. But see, section 3.02(12) of this revenue procedure.

(b) Other letter requests. Any determination letter request which is not required to be submitted on a form may be submitted by letter.

.03 All requests must be submitted in English. All documents submitted in support of such requests must be in English or accompanied by an accurate and complete English translation.

.04 Signature on request. The request for determination letter must be signed and dated by the taxpayer or, when applicable, the taxpayer's authorized representative. Neither a stamped signature nor a faxed signature is permitted. However, a faxed signature is permitted if requested by the Service in the case of an organization replacing its initial request with a request for a determination under a different subsection of § 501(c) during processing of an initial request, or as otherwise requested during the processing of an initial request.

(1) Individual authorized to sign Form 1023, Form 1023-EZ, Form 1024, Form 1024-A or Form 8940 on behalf of an organization. In the case of a request for a determination letter made by filing Form 1023, Form 1023-EZ, Form 1024, Form 1024-A or Form 8940, an officer, director, trustee, or other official who is authorized to sign for the organization must sign the applicable form. The signature of a representative authorized by a power of attorney who is not an officer, director, trustee, or other official of the organization will not satisfy the signature requirement for Form 1023, Form 1023-EZ, Form 1024, Form 1024-A or Form 8940. See the instructions to the applicable form for more information on who may sign the application on behalf of an organization.

(2) Authorized representatives for all other requests. Except as provided in (1) of this section 4.04, to sign the request, or to appear before the Service in connection with the request, the authorized representative must be listed in Appendix B.

.05 Power of attorney and declaration of representative. Any representative authorized by a power of attorney, whether or not licensed to practice, must comply with the conference and practice requirements of the Statement of Procedural Rules (26 CFR §§ 601.501-601.509) and Treasury Department Circular No. 230, which provide the rules for representing a taxpayer before the Service.

Form 2848, Power of Attorney and Declaration of Representative must be used to provide the authorized representative’s authorization (Part I of Form 2848, Power of Attorney) and the authorized representative’s qualification (Part II of Form 2848, Declaration of Representative).

The name of the individual signing Part I of Form 2848 should also be typed or printed on this form. A stamped signature is not permitted.

An original, a copy, or a facsimile transmission (fax) of the power of attorney is acceptable so long as its authenticity is not reasonably disputed.

.06

(1) Penalty of perjury statement requirements for requests for determination letters made on Form 1023, Form 1023-EZ, Form 1024, Form 1024-A, or Form 8940. The signature of an individual described in section 4.04(1) of this revenue procedure satisfies the penalty of perjury statement signature requirements for requests on Form 1023, Form 1023-EZ, Form 1024, Form 1024-A, or Form 8940, as applicable.

(2) Penalty of perjury statement requirements for letter requests and responses to requests for additional information. Any letter request or information submitted at a later time (regardless of the format of the original request), must be accompanied by the following declaration—

"Under penalties of perjury, I declare that I have examined this request, or this modification to the request, including accompanying documents, and, to the best of my knowledge and belief, the request or the modification contains all the relevant facts relating to the request, and such facts are true, correct, and complete."

This declaration must be signed and dated by the taxpayer, not the taxpayer’s representative authorized by a power of attorney. The signature of an individual described in section 4.04(1) of this revenue procedure is the signature of the taxpayer for purposes of the penalty of perjury statement. The signature of an authorized representative described in section 4.04(2) of this revenue procedure will not satisfy the penalty of perjury statement requirements (except as otherwise provided in Appendix B). See the instructions to the relevant form for additional detail. Neither a stamped signature nor a faxed signature is permitted. However, a faxed signature is permitted if requested by the Service in the case of information submitted in response to a request by the Service for additional information after the request for a determination.

The individual who signs for a corporate taxpayer must be an officer of the corporate taxpayer who has personal knowledge of the facts, and whose duties are not limited to obtaining a determination letter from the Service.

The individual signing for a trust, a state law partnership, or a limited liability company must be, respectively, a trustee, general partner, or member-manager who has personal knowledge of the facts.

.07 Section 7528 requires taxpayers to pay user fees for requests for determination letters. See section 14 and Appendix A of this revenue procedure for more information.

.08 The original of the determination letter will be sent to the taxpayer and a copy of the determination letter will be sent to up to two authorized representatives listed on Form 2848 as appointed to receive notices and communications.

.09 Requests for determination letters are normally processed in the order of receipt by the Service. However, expedited processing of a request for a determination letter may be approved where a request for expedited processing is made in writing and contains a compelling reason for processing the request for a determination letter ahead of others. Upon approval of a request for expedited processing, a request for a determination letter will be considered ahead of the normal order. This does not mean the request for a determination letter will be immediately approved or denied.

(1) Procedures for requesting expedited handling. In the case of the electronically submitted Form 1023, Form 1024, Form 1024-A, or Form 8940, a request for expedited handling must be indicated on the form and a supporting written statement must be submitted as an attachment with the completed application.

In the case of other requests for determination letters, the request for expedited handling must be made in writing, preferably in a separate letter sent with, or soon after filing, the request for the determination letter. If the request is not made in a separate letter, then the letter in which the determination letter request is made should say, at the top of the first page: “Expedited Handling Is Requested. See page ___ of this letter.”

A request for expedited handling will not be forwarded to the appropriate group for action unless the application has been accepted for processing. See section 6.06(1) of this revenue procedure (requirements for a complete application).

Whether the request will be granted is within the Service's discretion. Circumstances generally warranting expedited processing include—

(a) a grant to the applicant is pending and the failure to secure the grant may have an adverse impact on the organization’s ability to continue to operate;

(b) the purpose of the newly created organization is to provide disaster relief to victims of emergencies such as flood and hurricane; and

(c) there have been undue delays in issuing a determination letter caused by a Service error.

Because most requests for determination letters cannot be processed ahead of their regular order, the Service urges all taxpayers to submit their requests well in advance of the contemplated transaction. In addition, in order to facilitate prompt action on determination letter requests, taxpayers are encouraged to ensure that their initial submissions comply with all of the requirements of this revenue procedure, and to promptly provide any additional information requested by the Service.

(2) Applications on Form 1023-EZ are ineligible for expedited handling. An organization may not request expedited handling of a Form 1023-EZ.

.10 The Service will not accept for processing any request that is substantially incomplete.

(1) Requests other than Form 1023-EZ. An application other than Form 1023-EZ that is missing any item of information listed in section 6.06(1) of this revenue procedure will be considered substantially incomplete and will not be accepted for processing. A request other than an application may be considered substantially incomplete if it does not contain the information, documentation, and other materials required by sections 4, 5, or 7 of this revenue procedure, or Form 8940 and its Instructions, as applicable to the particular request.

(2) Requests on Form 1023-EZ.

(a) Incomplete Form 1023-EZ. A submitted Form 1023-EZ that is not a completed Form 1023-EZ within the meaning of section 6.06(2) of this revenue procedure will not be accepted for processing by the Service. The Service may, but is not required to, request additional information to validate information presented or to clarify an inconsistency on a Form 1023-EZ.

(b) Form 1023-EZ and pending application. The Service will not accept for processing a Form 1023-EZ from an organization that has an application for recognition of exemption pending with the Service.

(3) Effect of non-acceptance. An organization will be notified if its request is not accepted for processing and any user fee that was paid with the request will be refunded. See section 14.09 of this revenue procedure. An organization may then submit a new request, including the missing information, with a new user fee.

.11 The taxpayer or the taxpayer’s authorized representative should refer to www.irs.gov (“Where's My Exemption Application for Tax-Exempt Status?”) for guidelines on when to expect to hear from the Service and may obtain information regarding the status of a request by calling the toll-free Customer Account Services number, 877–829–5500.

.01 This section explains the specific procedures for requesting a determination letter by letter. Any determination letter request which is not required to be submitted on a form may be submitted by letter. For example, an organization seeking to be described in § 501(d) would submit a letter application in accordance with this section 5 and other applicable sections of this revenue procedure, and Rev. Proc. 72-5, 1972-1 CB 709.

Other specific procedures may apply, depending on the type of request. See section 6 of this revenue procedure for applications for recognition of exemption under §§ 501 or 521.

.02

(1) Complete statement of facts and other information. Each request for a determination letter must contain a complete statement of all facts relating to the request. These facts include the organization’s name, address, telephone number, and Employer Identification Number (EIN).

(2) Copies of all organizing documents, bylaws, contracts, wills, deeds, agreements, instruments, and other documents. All documents that are pertinent to the request (including organizing documents, bylaws, contracts, wills, deeds, agreements, instruments, trust documents, and proposed disclaimers) must be submitted with the request.

Original documents should not be submitted because they become part of the Service’s file and will not be returned to the taxpayer. Instead, true copies of all such documents should be submitted with the request. Each document, other than the request, should be labeled alphabetically and attached to the request in alphabetical order.

(3) Analysis of material facts. All material facts in documents must be included, rather than merely incorporated by reference, in the taxpayer's initial request or in supplemental letters. These facts must be accompanied by an analysis of their bearing on the request, specifying the provisions that apply.

(4) Statement regarding whether same or similar issue was previously ruled on or requested, or is currently pending. The request must also state whether, to the best of the knowledge of both the taxpayer and the taxpayer's authorized representatives—

(a) the Service or the Office of Associate Chief Counsel previously ruled on the same or similar issue for the taxpayer (or a related taxpayer within the meaning of § 267, or a member of an affiliated group of which the taxpayer is also a member within the meaning of § 1504) or a predecessor;

(b) the taxpayer, a related taxpayer, a predecessor, or any authorized representatives previously submitted the same or similar issue to the Service or the Office of Associate Chief Counsel but withdrew the request before a letter ruling or determination letter was issued;

(c) the taxpayer, a related taxpayer, or a predecessor previously submitted a request involving the same or a similar issue that is currently pending with the Service or the Office of Associate Chief Counsel; or

(d) at the same time as this request, the taxpayer or a related taxpayer is presently submitting another request involving the same or a similar issue to the Service or the Office of Associate Chief Counsel.

If the statement is affirmative for (a), (b), (c), or (d) of this section 5.02(4), the statement must give the date the request was submitted, the date the request was withdrawn or ruled on, if applicable, and other details of the Service's or Office of Associate Chief Counsel’s consideration of the issue.

(5) The request must include a statement of whether the law in connection with the request is uncertain and whether the issue is adequately addressed by relevant authorities.

(a) Statement of supporting authorities. If the taxpayer advocates a particular conclusion, an explanation of the grounds for that conclusion and the relevant authorities to support it must also be included. Even if not advocating a particular tax treatment of a proposed transaction, the taxpayer must still furnish views on the tax results of the proposed transaction and a statement of relevant authorities to support those views.

(b) Statement of contrary authorities. The taxpayer is also encouraged to inform the Service about, and discuss the implications of, any authority believed to be contrary to the position advanced, such as legislation (or pending legislation), tax treaties, court decisions, regulations, revenue rulings, revenue procedures, notices, or announcements. If the taxpayer determines that there are no contrary authorities, a statement in the request to this effect would be helpful. If the taxpayer does not furnish either contrary authorities or a statement that none exists, the Service in complex cases or those presenting difficult or novel issues may request submission of contrary authorities or a statement that none exists. Failure to comply with this request may result in the Service's refusal to issue a determination letter.

Identifying and discussing contrary authorities will generally enable Service personnel to understand the issue and relevant authorities more quickly. When Service personnel receive the request, they will have before them the taxpayer's thinking on the effect and applicability of contrary authorities. This information should make research easier and lead to earlier action by the Service. If the taxpayer does not disclose and distinguish significant contrary authorities, the Service may need to request additional information, which will delay action on the request.

.01 This section sets forth procedures for applying for and issuing determination letters in response to applications for recognition of exemption under §§ 501 or 521, other than those subject to Rev. Proc. 2024-4 (relating to pension, profit-sharing, stock bonus, annuity, and employee stock ownership plans).

.02 An organization that is identified or designated as a terrorist organization within the meaning of § 501(p)(2) is not eligible to apply for recognition of exemption.

.03 An organization seeking recognition of exemption under §§ 501 or 521 is required to submit the appropriate completed application form or the appropriate completed letter request. In the case of a numbered application form, the current version of the form must be submitted. The current version of the form can be found on www.irs.gov (“Forms & Instructions”).

.04 An organization applying for recognition of exemption must pay the user fee with its Form 1023, Form 1023-EZ, Form 1024, or Form 1024-A through www.pay.gov when submitting its form. For other applications for recognition of exemption, an organization must attach a completed Form 8718, User Fee for Exempt Organization Determination Letter Request, to its application.

.05

(1) Eligibility for Form 1023-EZ application. An organization that is an eligible organization may use Form 1023-EZ to apply for recognition of exemption under § 501(c)(3), unless the organization is designated in section 6.05(2) of this revenue procedure as an organization that is ineligible to submit Form 1023-EZ. An organization is an eligible organization if the organization satisfies all of the following criteria—

(a) The organization has projected annual gross receipts of $50,000 or less in the current taxable year and the next two years;

(b) The organization had annual gross receipts of $50,000 or less in each of the past three years for which the organization was in existence; and

(c) The organization has total assets the fair market value of which does not exceed $250,000. For purposes of this eligibility requirement, a good faith estimate of the fair market value of the organization’s assets is sufficient.

(2) Ineligibility for Form 1023-EZ application. The following organizations are not eligible to submit Form 1023-EZ and must use Form 1023 to apply for recognition of exemption under § 501(c)(3)—

(a) Organizations formed under the laws of a foreign country (United States territories and possessions are not considered foreign countries);

(b) Organizations that do not have a mailing address in the United States (territories and possessions are considered the United States for this purpose);

(c) Organizations that are successors to, or controlled by, an entity suspended under § 501(p) (suspension of tax-exempt status of terrorist organizations);

(d) Organizations that are not corporations, unincorporated associations, or trusts, such as a limited liability corporation (LLC);

(e) Organizations that are formed as for-profit entities or are successors to for-profit entities;

(f) Organizations whose tax-exempt status were previously revoked or that are successors to an organization whose tax-exempt status was previously revoked (other than an organization the tax-exempt status of which was automatically revoked for failure to file a Form 990 series return or notice for three consecutive years under § 6033(j));

(g) Churches or conventions or associations of churches described in § 170(b)(1)(A)(i);

(h) Schools, colleges, or universities described in § 170(b)(1)(A)(ii);

(i) Hospitals or medical research organizations described in §§ 170(b)(1)(A)(iii) or 501(r)(2)(A)(i) (cooperative hospital service organizations described in § 501(e));

(j) Cooperative service organizations of operating educational organizations described in § 501(f);

(k) Qualified charitable risk pools described in § 501(n);

(l) Supporting organizations described in § 509(a)(3);

(m) Organizations that have as a substantial purpose providing assistance to individuals through credit counseling activities such as budgeting, personal finance, financial literacy, mortgage foreclosure assistance, or other consumer credit areas;

(n) Organizations that invest, or intend to invest, five percent or more of their total assets in securities or funds that are not publicly traded;

(o) Organizations that participate, or intend to participate, in partnerships (including entities or arrangements treated as partnerships for Federal tax purposes) in which they share profits and losses with partners other than § 501(c)(3) organizations;

(p) Organizations that sell, or intend to sell, carbon credits or carbon offsets;

(q) Health Maintenance Organizations (HMOs);

(r) Accountable Care Organizations (ACOs), or organizations that engage in, or intend to engage in, ACO activities (such as participation in the Medicare Shared Savings Program (MSSP) or in activities unrelated to the MSSP described in Notice 2011-20, 2011-16 IRB 652);

(s) Organizations that maintain, or intend to maintain, one or more donor advised funds;

(t) Organizations that are organized and operated exclusively for testing for public safety and that are requesting a foundation classification under § 509(a)(4);

(u) Private operating foundations;

(v) Organizations that are applying for retroactive reinstatement of tax-exempt status under sections 5 or 6 of Rev. Proc. 2014-11, 2014-3 IRB 411, after being automatically revoked (see section 6.05(3) of this revenue procedure for additional information);

(w) Organizations applying for retroactive reinstatement under section 4 of Rev. Proc. 2014-11 after being automatically revoked that are seeking a foundation classification that is different from the classification they had at the time of revocation;

(x) Agricultural research organizations described in § 170(b)(1)(A)(ix); and

(y) Organizations that are currently or were previously exempt under another subsection of § 501(c).

Further information regarding these eligibility requirements may be provided in the Instructions for Form 1023-EZ.

(3) Form 1023 and Form 1023-EZ applications for reinstatement after automatic revocation. Organizations that claim tax-exempt status under § 501(c) generally must file annual Form 990 series returns or notices, even if they have not yet received their determination letter recognizing their tax-exempt status. If an organization fails to file required Form 990 series returns or notices for three consecutive years, its tax-exempt status will be automatically revoked by operation of § 6033(j). Such an organization may apply for reinstatement of its tax-exempt status, and such recognition may be granted retroactively, as provided in Rev. Proc. 2014-11. Consistent with the eligibility requirements for using Form 1023-EZ that are set forth in section 6.05(1)-(2) of this revenue procedure, only an organization requesting reinstatement of § 501(c)(3) status under section 4 (streamlined retroactive reinstatement of tax-exempt status for small organizations within 15 months of revocation) or section 7 (reinstatement of tax-exempt status from postmark date) of Rev. Proc. 2014-11 may apply using Form 1023-EZ (other than an organization also seeking a foundation status change as explained in section 6.05(2)(w) of Rev. Proc. 2014-11). An organization requesting reinstatement of § 501(c)(3) status under section 5 (retroactive reinstatement of tax-exempt status within 15 months of revocation) or section 6 (retroactive reinstatement more than 15 months after revocation) of Rev. Proc. 2014-11 must apply using Form 1023.

.06

(1) A completed application (other than a Form 1023-EZ), including a letter application, is one that—

(a) is signed or, in the case of a Form 1023, Form 1024, or Form 1024-A, is electronically signed by an authorized individual under penalties of perjury (see sections 4.04 and 4.06 of this revenue procedure);

(b) includes the organization’s correct EIN;

(c) (i) for organizations other than those described in § 501(c)(3) or (4), includes a statement of receipts and expenditures and a balance sheet for the current year and the three preceding years (or the years the organization was in existence, if less than four years), and if the organization has not yet commenced operations or has not completed one accounting period, a proposed budget for two full accounting periods and a current statement of assets and liabilities;

(ii) for organizations described in § 501(c)(3) or (4), see Form 1023 and Instructions for Form 1023 or Form 1024-A and Instructions for Form 1024-A, respectively;

(d) includes a detailed narrative statement of proposed activities, including each of the fundraising activities of a § 501(c)(3) organization, and a narrative description of anticipated receipts and contemplated expenditures;

(e) includes a copy of the organizing or enabling document that is signed by a principal officer or two members in the case of an unincorporated association, or is accompanied by a written declaration signed by an authorized individual certifying that the document is a complete and accurate copy of the original or otherwise satisfies the requirements of a “conformed copy,” as outlined in Rev. Proc. 68-14, 1968-1 CB 768;

(f) if the organizing or enabling document is in the form of articles of incorporation, includes evidence that it was filed with, and approved by, an appropriate state official (e.g., stamped “Filed” and dated by the Secretary of State); alternatively, a copy of the articles of incorporation may be submitted if accompanied by a written declaration signed by an authorized individual that the copy is a complete and accurate copy of the original copy that was filed with and approved by the state; if a copy is submitted, the written declaration must include the date the articles were filed with the state;

(g) if the organization has adopted bylaws or similar governing rules, includes a current copy; the bylaws need not be signed if submitted as an attachment to the application for recognition of exemption; otherwise, the bylaws must be verified as current by an authorized individual (see section 4.04 of this revenue procedure); and

(h) is accompanied by the correct user fee (and Form 8718, when applicable).

(2) A Form 1023-EZ submitted online at www.pay.gov by an eligible organization is complete if it—

(a) includes responses for each required line item of the form, including an accurate date of organization and an attestation that the organization has completed the Form 1023-EZ eligibility worksheet, as in effect on the date of submission, is eligible to apply for tax-exempt status using Form 1023-EZ, and has read the Instructions for Form 1023-EZ and understands the requirements to be exempt under § 501(c)(3) as expressed therein;

(b) includes the organization’s correct EIN;

(c) is electronically signed, under penalties of perjury, by an individual authorized to sign for the organization (as specified in sections 4.04 and 4.06 of this revenue procedure and the Instructions for Form 1023-EZ); and

(d) is accompanied by the correct user fee.

A Form 1023-EZ will not be considered complete if the organization’s name and EIN do not match the records in the Service’s Business Master File. Furthermore, a Form 1023-EZ submitted by an organization that is not an eligible organization within the meaning of section 6.05 of this revenue procedure will not be considered complete.

.07

(1) A favorable determination letter will be issued to an organization if its completed application, including attestations and supporting documents, along with any additional information requested by the Service and provided by the organization, establishes that it satisfies the particular requirements of the section under which exemption from Federal income tax is claimed.

(2) (a) For all applications other than a Form 1023-EZ, tax-exempt status may be recognized in advance of the organization’s operations if the proposed activities are described in sufficient detail to permit a conclusion that the organization will clearly meet the particular requirements for tax-exempt status pursuant to the section of the Code under which tax-exempt status is claimed.

(i) A mere restatement of exempt purposes or a statement that proposed activities will be in furtherance of such purposes will not satisfy this requirement.

(ii) The organization must fully describe all of the activities in which it expects to engage, including the standards, criteria, procedures, or other means adopted or planned for carrying out the activities, the anticipated sources of receipts, and the nature of contemplated expenditures.

(iii) Where the organization cannot demonstrate to the satisfaction of the Service that it qualifies for tax-exempt status pursuant to the section of the Code under which tax-exempt status is claimed, the Service will generally issue a proposed adverse determination letter. See section 9 of this revenue procedure.

(b) For Form 1023-EZ applications, tax-exempt status may be recognized in advance of the organization’s operations if the attestations contained in the organization’s completed Form 1023-EZ (along with any additional information requested by the Service and provided by the organization) establish that it satisfies the requirements for tax-exempt status under § 501(c)(3).

(3) Even though an application is complete, the Service may request additional information before issuing a determination letter. The failure to respond to a request for additional information may result in the closure of the application without a determination letter being issued and without a refund of the user fee. If the failure to respond to a request for additional information results in the Service issuing a proposed adverse determination letter to the organization, the proposed adverse determination letter will inform the organization of its opportunity to protest/appeal the decision and request a conference. See section 9 of this revenue procedure for the applicable appeal/protest procedures.

(a) In the case of an application under § 501(c)(3), 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).

(b) The Service will select a statistically valid random sample of Form 1023-EZ applications for pre-determination reviews, which will result in requests for additional information.

.08

(1) In general. A determination letter recognizing tax-exempt status of an organization described in § 501(c), other than § 501(c)(29), is effective as of the date of formation of an organization if: (1) its purposes and activities prior to the date of the determination letter have been consistent with the requirements for tax-exempt status; and (2) it has filed an application for recognition of exemption within 27 months from the end of the month in which it was organized.

(2) When an application is not submitted within 27 months of formation. An organization that otherwise meets the requirements for tax-exempt status and the issuance of a determination letter but does not meet the requirements for recognition from date of formation will be recognized from the postmark date of its application or the submission date of its Form 1023, Form 1023-EZ, Form 1024, or Form 1024-A, as applicable.

(3) Application of Treas. Reg. § 301.9100-3: Organizations required to apply for tax-exempt status under §§ 505, 508, and 501(c)(29) and the regulations thereunder. Unlike other tax-exempt organizations, an organization described in § 501(c)(3), (9), or (17) generally is required to apply for recognition of exemption within 27 months from the end of the month in which it was organized in order to be recognized and treated as tax-exempt effective as of the date of formation. See §§ 505 and 508, Treas. Reg. §§ 1.505(c)-1T, 1.508-1(a), and 301.9100-2(a)(2)(iii) and (iv). A similar rule applies to organizations described in § 501(c)(29). See § 501(c)(29), Treas. Reg. § 1.501(c)(29)-1, and Rev. Proc. 2015-17, 2015-7 IRB 599. In its application for recognition of exemption under § 501(c)(3), (9), (17), or (29), an organization that has not filed its application within the required time period may request relief under Treas. Reg. § 301.9100-3 in order to be recognized and treated as tax-exempt effective as of a date earlier than the date of application, and EO Determinations may grant such relief if the requirements for relief are met. An organization applying for recognition of exemption under § 501(c)(3) after 27 months from formation may not use Form 1023-EZ if it requests an effective date earlier than the submission date, but instead must file a Form 1023. An organization will not be granted relief under Treas. Reg. § 301.9100-3 if either (1) granting the request for relief would result in the organization’s tax-exempt status being automatically revoked under § 6033(j)(1) effective before the application date (without regard to the provisions of § 6033(j)(3) and guidance issued thereunder), or (2) the period of limitations on assessment under § 6501(a) for any taxable year for which the organization claims tax-exempt status has expired prior to the date of application.

(4) Application of Treas. Reg. § 301.9100-3: Organizations not required to apply for tax-exempt status under §§ 505, 508, or 501(c)(29) and the regulations thereunder. Treas. Reg. § 301.9100-3 does not apply to an organization that is not required to apply for recognition of exemption in order to be tax-exempt, and the Service will not consider a request for relief under Treas. Reg. § 301.9100-3 from such an organization.

(5) When the Service requires the organization to make amendments.

(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 electronically submitted on Form 8940 at www.pay.gov (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. Form 8940 must be electronically signed by an authorized individual under penalties of perjury (see sections 4.04 and 4.06 of this revenue procedure). 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 § 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).

.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.

.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. 2024-2.

.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.

.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), 501(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.

.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 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).

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

.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.

.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 tax-exempt 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.

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

.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.

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

(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 § 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, 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 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 Letter 437, Notice of Intention to Disclose, and redacted copies of the final and proposed adverse determination letters. Letter 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 Letter 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 Letter 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 Letter 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.

.07 The Service may disclose to state officials the name, address, and identification number of any organization that has applied for recognition of exemption under § 501(c)(3). The Service does not consider an organization the application of which is not accepted under section 4.10 of this revenue procedure to have applied for recognition of exemption.

.01 Section 7528 directs the Secretary of the Treasury or delegate (Secretary) to establish a program requiring the payment of user fees for requests to the Service for determination letters and similar requests.

The fees charged under the program: (1) are to vary according to categories or subcategories established by the Secretary; (2) are to be determined after taking into account the average time for, and difficulty of, complying with requests in each category and subcategory; and (3) are payable in advance.

Section 7528(b)(2) directs the Secretary to provide for exemptions and reduced fees under the program as the Secretary determines to be appropriate, but the average fee applicable to each category must not be less than the amount specified in § 7528(b)(3).

.02 In general, user fees apply to all requests for determination letters described in this revenue procedure.

Requests to which a user fee applies must be accompanied by the appropriate fee as determined from the fee schedule provided in Appendix A of this revenue procedure. The fee may be refunded in limited circumstances as set forth in section 14.09 of this revenue procedure.

.03 Actions that do not require the payment of a user fee include—

(1) Elections pertaining to automatic extensions of time under Treas. Reg. § 301.9100-1;

(2) Confirmation of tax-exempt status (affirmation letter) (to replace lost tax-exempt status letter and to reflect name and address changes); and

(3) Notice of intent to terminate private foundation status under § 507(b)(1)(B) without a request for an advance ruling.

.04 Departments, agencies, or instrumentalities of the United States that certify that they are seeking a determination letter on behalf of a program or activity funded by Federal appropriations are exempt from the user fee requirements. The fact that a user fee is not charged under § 7528 has no bearing on whether an applicant is treated as an agency or instrumentality of the United States for purposes of any other provision of the Code.

In addition, Canadian registered charities do not pay a user fee. See Appendix A.

.05

(1) Requests involving several fee categories. Requests submitted as part of an initial application (e.g., foundation classification; exemption from Form 990 filing requirements) are considered part of the initial application and aren’t subject to an additional user fee.

(2) Multiple requests on a single Form 8940. A separate Form 8940 and user fee are generally required for each type of request for which an organization has checked a box on Form 8940. However, the following scenarios are considered a single request—

(a) A request for reclassification as a public charity under § 509(a)(3) that checks boxes f and g of Form 8940; or

(b) A request for advance approval of grant making procedures for a program described in both § 4945(g)(1) and (3).

(3) Requests for separate determination letters for several entities. Each entity involved in a request that desires a separate determination letter in its own name (for example, subordinate organizations seeking change of filing requirements) must pay a separate fee. Payment of a separate fee is required regardless of whether the requests may be viewed as related.

.06

(1) Payment of user fees for applications of recognition of exemption on Form 1023, Form 1023-EZ, Form 1024, Form 1024-A, or requests on Form 8940. User fees for applications for recognition of exemption on Form 1023, Form 1023-EZ, Form 1024, Form 1024-A, or requests on Form 8940 must be paid at www.pay.gov.

(2) Payment of user fees for other requests. For requests other than those in section 14.06(1) of this revenue procedure, each request to the Service for a determination letter must be accompanied by a check, payable to the United States Treasury, in the appropriate amount. Taxpayers should not send cash.

The check may be converted to an electronic fund transfer. "Electronic fund transfer" is the term used to refer to the process in which the Service electronically instructs the financial institution holding the funds to transfer funds from the account named on the check to the United States Treasury account, rather than processing the check. By sending a completed, signed check to the Service, the Service is authorized to copy the check and to use the account information from the check to make an electronic fund transfer from the account for the same amount as the check. If the electronic fund transfer cannot be processed for technical reasons, the Service is authorized to process the copy of the check.

The electronic fund transfer from an account will usually occur within 24 hours, which is faster than a check is normally processed. Therefore, it is necessary to ensure there are sufficient funds available in the checking account when the check is sent to the Service. The check will not be returned from the financial institution.

.07 Form 8718 should be attached to applications or requests other than those made on Form 1023, Form 1023-EZ, Form 1024, Form 1024-A, or Form 8940, to transmit a check in the amount of the required user fee.

.08 It will be the general practice of the Service that—

(1) An application for a determination letter containing the correct user fee will generally be accepted for processing even if Form 8718 was not attached.

(2) If a check is for more than the correct amount, the submission will be accepted for processing and the amount of the excess payment will be returned to the requester.

(3) If a check is for less than the correct amount or no check is received, the submission will not be accepted for processing and any user fee that was paid with the request will be refunded. See section 4.10 of this revenue procedure.

.09 In general, the user fee will not be refunded unless the Service does not accept the request for processing or declines to make a determination on all issues for which a determination letter is requested.

(1) Examples in which the user fee will not be refunded:

(a) The request for a determination letter is withdrawn at any time subsequent to its receipt by the Service. For example, no fee will be refunded where the taxpayer has been advised that an adverse ruling is contemplated and the taxpayer subsequently withdraws its submission.

(b) A determination letter is revoked in whole or in part. The fee paid at the time the original determination letter was requested will not be refunded.

(c) The request contains several issues and the Service rules on some, but not all, of the issues. The highest fee applicable to the issues on which the Service rules will not be refunded.

(2) The following situations are examples in which the user fee will be refunded:

(a) The request is not accepted for processing under section 4.10 of this revenue procedure.

(b) The Service declines to rule on the request in accordance with section 3.02 of this revenue procedure.

.10 A taxpayer that believes the user fee charged by the Service for its request for a determination letter is either not applicable or incorrect and wishes to receive a refund of all or part of the amount paid (see section 14.09 of this revenue procedure) may request reconsideration and, if desired, the opportunity for an oral discussion by sending a letter to the Internal Revenue Service at the applicable Post Office Box or other address given in section 15 of this revenue procedure. Both the incoming envelope and the letter requesting such reconsideration should be prominently marked “USER FEE RECONSIDERATION REQUEST.” No user fee is required for these requests. The request should be marked for the attention of “Manager, EO Determinations Quality Assurance.”