Revenue Procedure 2021-5
Internal Revenue Service
2021-1 I.R.B. 250
   
   
   
 26 C.F.R. 601.201: Rulings and determination letters.      
     
 Rev. Proc. 2021-5    
   
                          
       
       
     
 SECTION 1. WHAT IS    
  This revenue procedure sets forth procedures for issuing determination letters on issues under   
 THE PURPOSE OF THIS    
the jurisdiction of the Director, Exempt Organizations (EO) Rulings and Agreements. Specifically,   
 REVENUE PROCEDURE?    
it explains the procedures for issuing determination letters on tax-exempt status (in response to ap-   
     
plications for recognition of exemption from Federal income tax under § 501 or § 521 other than   
     
those subject to Rev. Proc. 2021-4, this Bulletin (relating to pension, profit-sharing, stock bonus,   
     
annuity, and employee stock ownership plans)), private foundation status, and other determina-   
     
tions related to tax-exempt organizations. These procedures also apply to revocation or modifica-   
     
tion of determination letters. This revenue procedure also provides guidance on the exhaustion of   
     
administrative remedies for purposes of declaratory judgment under § 7428. Finally, this revenue   
     
procedure provides guidance on applicable user fees for requesting determination letters.   
     
     
 Description of terms used in.01 For purposes of this revenue procedure-   
 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 & Gov-   
     
ernment 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 Ser-   
     
vice that is primarily responsible for processing requests for determination letters.   
     
     
     
  (4) The term "Internal Revenue Service Independent Office of Appeals" (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   
     
the Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes)   
     
pursuant to the procedures prescribed in Rev. Proc. 2021-2, 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 deter-   
     
mination 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.   
     
     
 Updated annually.02 This revenue procedure is updated annually, but may be modified  or amplified during the   
     
year.   
     
     
 SECTION 2. NATURE    
     
 OF CHANGES TO REV.    
     
 PROC. 2020-5 AND    
     
 RELATED REVENUE    
     
 PROCEDURES AND    
     
 FORMS    
     
     
     
 What changes have been.  01 This revenue procedure updates Rev. Proc. 2020-5, which deals with procedures for issuing   
 made to Rev. Proc. 2020-5?    
Exempt Organization determination letters. Notable changes to Rev. Proc. 2020-5 that appear in   
     
this year's update include -   
     
     
     
  (1) Edits were made throughout to reflect Rev. Proc. 2020-8, which provided information and   
     
procedures on the electronic Form 1023.   
     
     
  (2) Section 2.03(1) was added to clarify that Form 3115, Application for Change in Accounting    
     
 Method, is not a request for a determination and to explain how a tax-exempt organization may   
     
change its method of accounting.   
     
     
     
  (3) Section 2.04 was updated to announce that an electronic version of Form 1024-A, Appli-    
     
 cation for Recognition of Exemption Under Section 501(c)(4) of the Internal Revenue Code, is   
     
expected to be released in 2021.   
     
     
     
  (4) Section 3.02(11) was added to reflect Notice 2020-36, 2020-21 I.R.B. 840, which provides   
     
that the Service will not accept any requests for group exemption letters until publication of the fi-   
     
nal revenue procedure described in the Notice or other guidance in the Internal Revenue Bulletin.   
     
     
     
  (5) Section 6.08 was revised to provide clarification on relief under Treas. Reg. §§ 301.9100-1   
     
through -3. Section 6.08(3) now provides that 9100 relief will not be granted if either (1) granting   
     
the request for relief would result in the organization's tax-exempt status being automatically re-   
     
voked under § 6033(j)(1) effective before the date of application (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. In addition, section 6.08(4) now provides that Treas. Reg.   
     
§ 301.9100-3 does not apply to an organization that is not required to apply for recognition of ex-   
     
emption in order to be tax-exempt, and that the Service will not consider a request for relief under   
     
Treas. Reg. § 301.9100-3 from such an organization.   
     
     
     
  (6) Section 9.12 was added to note that additional guidance may be provided in the future to   
     
clarify the Independent Office of Appeals' role in matters covered by this revenue procedure.   
     
     
     
  (7) Section 16 was updated to explain that this revenue procedure supersedes Rev. Proc. 2020-8.   
     
     
     
  (8) The OMB control numbers in Section 18 were updated.   
     
     
     
  (9) Editorial changes were made throughout including minor non-substantive changes, dates,   
     
and cross-references. Citations to other revenue procedures were changed to reflect the appropri-   
     
ate annual revenue procedures.   
     
     
 Related revenue procedures.02 This revenue procedure supplements the following revenue procedures-   
     
     
     
  (1) Rev. Proc. 80-27, 1980-1 C.B. 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 C.B. 709, which provides information for religious and apostolic   
     
organizations seeking recognition of exemption under § 501(d).   
     
     
     
  (3) Rev. Proc. 2015-17, 2015-7 I.R.B. 599, which provides information regarding procedures   
     
for organizations described in § 501(c)(29).   
     
     
     
  (4) Rev. Proc. 2014-11, 2014-3 I.R.B. 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 I.R.B. 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 I.R.B. 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.   
     
     
 Related forms that are not a.03 Forms that are not requests for a determination. Certain organizations are required to   
 request for a determination    
submit the following forms, but such forms are not requests for a determination and, thus, are not   
 letter    
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 in-   
     
come 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 ( see, e.g., Rev. Proc. 2015-13, 2015-5 I.R.B. 419, as modified and clarified (or any succes -   
     
sor)). 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 gen-   
     
erally 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 solely due to owing a section 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 and Section 9 of Rev. Proc. 2021-1 for procedures applicable to taxpayers, includ-   
     
ing tax-exempt organizations, for requesting changes in method of accounting.   
     
     
     
  (2) Form 8871, Political Organization Notice of Section 527 Status. A political party, a cam-   
     
paign 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 electron-   
     
ically filing Form 8871, Political Organization Notice of Section 527 Status. See  irs.gov ("Tax   
     
Information for Political Organizations").   
     
     
     
  (3) Form 8976, Notice of Intent to Operate Under Section 501(c)(4). An organization de-   
     
scribed 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 accompanying   
     
user fee. See  irs.gov ("Electronically Submit Your Form 8976, Notice of Intent to Operate Under   
     
Section 501(c)(4)").   
     
     
 Related revenue procedure.04 An electronic version of Form 1024-A is expected to be released in 2021. A revenue proce-   
 expected to be published    
dure is expected to be published to provide information on and procedures for the new electronic   
 after Rev. Proc. 2021-5    
Form 1024-A, including the applicable transition period.   
     
 SECTION 3.    
     
 UNDER WHAT    
     
 CIRCUMSTANCES DOES    
     
 EO DETERMINATIONS    
     
 ISSUE DETERMINATION    
     
 LETTERS?    
     
     
     
 Matters on which EO.01 EO Determinations issues determination letters on the following matters:   
 Determinations will issue a    
     
 determination letter    
     
     
  (1) Initial qualification for tax-exempt status of organizations described in § 501 or § 521 (in-   
     
cluding 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 pursu-   
     
ant to that provision). See  Rev. Proc. 2018-15 for procedures applicable to an entity changing its   
     
form or state of organization;   
     
     
     
  (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 organi-   
     
zation 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 § 301.9100-1 of the Procedure and Administration Regulations 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 C.B. 418, and Rev. Proc.   
     
96-10, 1996-1 C.B. 577;   
     
     
     
  (11) Determination of foundation status under § 509(a)(3) of non-exempt charitable trusts de-   
     
scribed in § 4947(a)(1); and   
     
     
     
  (12) Government entity voluntary termination of § 501(c)(3) recognition (must include docu-   
     
mentation that the organization is not subject to income tax, other than under § 501(a)).   
     
     
 Circumstances under which.02 The Service may decline to issue a determination letter when appropriate in the interest of   
 determination letters are    
sound tax administration or on other grounds whenever warranted by the facts or circumstances   
 not issued    
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 Associate Chief Counsel described   
     
in Rev. Proc. 2021-1, this Bulletin;   
     
     
     
  (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)   
     
(6) of the Internal Revenue Code whose purpose is directed to the improvement of business con-   
     
ditions 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 U.S.C.S. § 801   
     
et seq.) which is prohibited by Federal law regardless of its legality under the law of the state in   
     
which such activity is conducted;   
     
     
     
  (5) the request is based on alternative plans of proposed transactions or on hypothetical situ-   
     
ations. An application based on proposed activities that satisfies section 6.07(2) (related to rec -   
     
ognizing tax-exempt status in advance of actual operations) is not considered to be based on   
     
hypothetical situations;   
     
     
     
  (6) an organization currently recognized as exempt under § 501(c) seeks a new determination   
     
letter confirming that the organization is still recognized under the same Code section under the   
     
currently extant facts;   
     
     
     
  (7) 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 al-   
     
ready 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 currently extant facts;   
     
     
  (8) an organization currently recognized as described in § 501(c)(3) seeks a determination letter   
     
recognizing the organization as described in a different subsection of § 501(c);   
     
     
     
  (9) an organization currently recognized as exempt under § 501(c) (other than a government   
     
entity as specified in section 3.01(12)) 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 determina-   
     
tion 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 affirma -   
     
tion letter to reflect changes to its name or address as provided in section 3.01(2); or   
     
     
     
  (11) an organization applies for a group exemption letter. Notice 2020-36, 2020-21 I.R.B. 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 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.   
     
2021-1 and Rev. Proc. 2021-3, this Bulletin.   
     
     
 Technical advice may be.03 EO Determinations generally issues determination letters only if the question presented is   
 requested in certain cases    
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. 2021-2, this Bulletin.   
     
 Review of determination.04 Determination letters issued under this revenue procedure are not generally reviewed by any   
 letters    
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.   
     
     
 Determination letter based.05 A determination letter is issued based solely upon the facts, attestations, and representations   
 solely on administrative    
contained in the administrative record.   
 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 al-   
     
leged 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 for additional information.   
     
     
 SECTION 4. WHAT    
     
 ARE THE GENERAL    
     
 INSTRUCTIONS    
     
 FOR REQUESTING    
     
 DETERMINATION    
     
 LETTERS?    
     
     
     
 In general.01 This section explains the general instructions for requesting determination letters. However,   
     
certain procedures do not apply to requests submitted on Form 1023, Application for Recognition    
     
 of Exemption Under Section 501(c)(3) of the Internal Revenue Code,    or Form 1023-EZ, Stream-    
     
 lined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue    
     
 Code, as indicated in this revenue procedure or in the forms and their instructions. In addition to   
     
these general instructions, specific procedures apply to requests submitted by letter (as described   
     
in section 5), applications for recognition of exemption from Federal income tax under § 501 or   
     
§ 521 (as described in section 6), and to requests for determinations submitted on Form 8940,     
     
 Request for Miscellaneous Determination    (as described in section 7).   
     
     
 Format of request.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.   
     
     
 Form 1023 application    
  (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 elec-   
     
tronically 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 com-   
     
pleted 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.   
     
     
 Form 1023-EZ application    
  (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 submit-   
     
ting a completed Form 1023, as described in section 6.06(1).   
     
     
     
  For additional information about the electronic submission process, refer to Form 1023-EZ and   
     
its Instructions.   
     
     
 Form 1024 application    
  (3) Form 1024 application. An organization seeking a determination letter from the Service   
     
recognizing tax-exempt status under § 501(c)(2), (5), (6), (7), (8), (9), (10), (12), (13), (15), (17),   
     
(19), or (25) must submit a completed Form 1024, Application for Recognition of Exemption    
     
 Under Section 501(a), along with Form 8718, User Fee for Exempt Organization Determination    
     
 Letter Request.   
     
     
  Organizations that seek to operate under § 501(c)(9) or (17) must apply for recognition of ex-   
     
emption. 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)).   
     
     
 Form 1024-A application    
  (4) Form 1024-A application. An organization seeking a determination letter from the Service   
     
recognizing tax-exempt status under § 501(c)(4) must submit a completed Form 1024-A, along   
     
with Form 8718 and the accompanying user fee. 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-ex-   
     
empt status under § 501(c)(4) by filing Form 1024-A, but are not required to do so except in cer-   
     
tain 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).   
     
     
 Form 1028 application    
  (5) Form 1028 application. An organization seeking recognition of exemption under § 521   
     
must submit a completed Form 1028, Application for Recognition of Exemption Under Section    
     
 521 of the Internal Revenue Code,    along with Form 8718.   
     
     
 Form 8940 request    
  (6) Form 8940 request for miscellaneous determination. The Form 8940, Request for Mis-    
 for miscellaneous    
 cellaneous Determination,    is used for the following determination letter requests:   
 determination    
     
     
  (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) Exemption 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; and   
     
     
     
  (i) Termination of private foundation status under § 507(b)(1)(B)--60-month period ended.   
     
     
 Letter request    
  (7) Letter request.    
     
     
  (a) Letter applications. (i) An organization seeking recognition of exemption under § 501(c)   
     
(11), (14), (16), (18), (21), (22), (23), (26), (27), (28), or (29), or under § 501(d), must submit a   
     
letter application along with Form 8718.   
     
     
     
  (ii) 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 applica-   
     
tion along with Form 8718.   
     
     
     
    (b) Other letter requests. Any determination letter request which is not required to be submit-   
     
ted on a form may be submitted by letter.   
     
     
 Language requirements.03 All requests must be submitted in English. All documents submitted in support of such re-   
     
quests must be in English or accompanied by an accurate and complete English translation.   
     
     
 Signature on request.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 de-   
     
termination 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, 1023-EZ, or 8940 on behalf of an organiza-    
     
 tion. In the case of a request for a determination letter made by filing Form 1023, Form 1023-EZ,   
     
or Form 8940, an officer, director, trustee, or other official who is authorized to sign for the orga-   
     
nization 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, or Form 8940. See  the instructions to   
     
the applicable form for more information on who may sign the application on behalf of an orga-   
     
nization.   
     
     
     
  (2) Individual or  representative authorized to sign Form 1024. In the case of a request for a   
     
determination letter made by filing Form 1024, an officer, a trustee who is authorized to sign, or   
     
a representative authorized by a power of attorney ( see  section 4.05 of this revenue procedure),   
     
must sign the application.   
     
     
     
  (3) Individual or representative authorized to sign Form 1024-A. In the case of a request   
     
for a determination letter made by filing Form 1024-A, an officer, a director, a trustee who is   
     
authorized to sign, or a representative authorized by a power of attorney ( see  section 4.05 of this   
     
revenue procedure), must sign the application.   
     
     
     
  (4) Authorized representatives for all other requests. Except as provided in section 4.04(1),   
     
and (2), and (3) to sign the request, or to appear before the Service in connection with the request,   
     
the authorized representative must be listed in Appendix B.   
     
     
 Power of attorney.05 Power of attorney and declaration of representative. Any representative authorized by   
 and declaration of    
a power of attorney, whether or not enrolled to practice, must comply with the conference and   
 representative    
practice requirements of the Statement of Procedural Rules (26 C.F.R. §§ 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 autho-   
     
rized 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.   
     
     
 Penalty of perjury.06   
 statement    
     
     
  (1) Penalty of perjury statement requirements for requests for determination letters made    
     
 on Form 1023, 1023-EZ, 1024, 1024-A, or 8940.    The signature of an individual described in sec-   
     
tion 4.04(1), (2), or (3) of this revenue procedure meets the penalty of perjury statement signature   
     
requirements for requests on Form 1023, 1023-EZ, 1024, 1024-A, or 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 (regard-   
     
less 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 modifica -   
     
  tion 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) 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), (3), or (4) will not meet the penalty of   
     
perjury statement requirements (except as otherwise provided in Appendix B). See  the instruc-   
     
tions 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 determi-   
     
nation 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.   
     
     
 Applicable user fee.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.   
     
     
 Where will copies of the.08 The original of the determination letter will be sent to the taxpayer and a copy of the deter-   
 determination letter be    
mination letter will be sent to up to two authorized representatives listed on Form 2848 as appoint-   
 sent?    
ed to receive notices and communications.   
     
 Expedited processing.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. Except for a request on the electronically   
     
submitted Form 1023, 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."   
     
     
     
  In the case of the electronically submitted Form 1023, 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.   
     
     
     
  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) (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 emer-   
     
gencies 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 or-   
     
der, 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, tax-   
     
payers 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.   
     
     
 Non-acceptance for.10 The Service will not accept for processing any request that is substantially incomplete.   
 processing    
     
     
  (1) Requests other than Form 1023-EZ. An application other than Form 1023-EZ that is miss-   
     
ing any item of information listed in section 6.06(1) 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.   
     
An organization may then submit a new request, including the missing information, with a new   
     
user fee.   
     
     
 How to check on status of.11 The taxpayer or the taxpayer's authorized representative should refer to irs.gov ("Where's   
 request    
My Exemption Application?") 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.   
     
     
 SECTION5. WHAT    
     
 ARE THE SPECIFIC    
     
 PROCEDURES FOR    
     
 REQUESTING A    
     
 DETERMINATION    
     
 LETTER BY LETTER?    
     
     
     
 In general.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 submit-   
     
ted by letter. For example, an organization seeking to be described in § 501(d) would submit a   
     
letter application in accordance with this section 5, other applicable sections of this revenue pro-   
     
cedure, and Rev. Proc. 72-5, 1972-1 C.B. 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.   
     
     
 Certain information.02   
 required    
     
     
 Statement of facts    
  (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).   
     
     
 Documents    
  (2) Copies of all organizing documents, bylaws, contracts, wills, deeds, agreements, in-    
     
 struments, 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 submit-   
     
ted with the request. Each document, other than the request, should be labeled alphabetically and   
     
attached to the request in alphabetical order.   
     
     
 Analysis of material facts    
  (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.   
     
     
 Same or similar issue    
  (4) Statement regarding whether same or similar issue was previously ruled on or request-    
 previously submitted or    
 ed, or is currently pending. The request must also state whether, to the best of the knowledge of   
 currently pending    
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 affili -   
     
ated 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 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.   
     
     
 Statement of authorities    
  (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 Ser-   
     
vice 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 un-   
     
derstand 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.   
     
     
 SECTION 6. WHAT    
     
 ARE THE SPECIFIC    
     
 PROCEDURES FOR    
     
 APPLICATIONS FOR    
     
 RECOGNITION OF    
     
 EXEMPTION UNDER    
     
 § 501 OR § 521?    
     
     
 In general.01 This section sets forth procedures for applying for and issuing determination letters in re-   
     
sponse to applications for recognition of exemption under § 501 or § 521 other than those subject   
     
to Rev. Proc. 2021-4, this Bulletin (relating to pension, profit-sharing, stock bonus, annuity, and   
     
employee stock ownership plans).   
     
     
 Terrorist organizations.02 An organization that is identified or designated as a terrorist organization within the mean-   
 not eligible to apply for    
ing of § 501(p)(2) is not eligible to apply for recognition of exemption.   
 recognition of exemption    
     
     
 Format of application.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 irs.gov ("Forms & Instructions").   
     
     
 Form 8718.04 An organization applying for recognition of exemption must attach a completed Form 8718,   
     
 User Fee for Exempt Organization Determination Letter Request, to its application, unless the   
     
organization is submitting Form 1023 or Form 1023-EZ. Form 8718 is an attachment related to   
     
user fees that is not, itself, a determination letter application.   
     
     
 Form 1023-EZ applications.05 (1) Eligibility for Form 1023-EZ application. An organization that is an eligible organiza-   
     
tion 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) as an organization that is ineligible to submit Form   
     
1023-EZ. An organization is an eligible organization if the organization meets 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 2 years;   
     
     
     
    (b) The organization had annual gross receipts of $50,000 or less in each of the past 3 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 posses-   
sions 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 that were previously revoked or that are successors to a previously revoked   
organization (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 fore-   
closure 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 en-   
     
gage 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 I.R.B. 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 I.R.B. 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,   
     
2014-3 I.R.B. 411, 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 Instruc-   
     
tions for Form 1023-EZ.   
     
     
 Form 1023 and Form    
  (3)  Form 1023 and Form 1023-EZ  applications for reinstatement after automatic revoca-    
 1023-EZ applications    
 tion.   Organizations that claim tax-exempt status under § 501(c) generally must file annual Form   
 for reinstatement after    
990 series returns or notices, even if they have not yet received their determination letter recog-   
 automatic revocation    
nizing 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 un-   
     
der 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 seek-   
     
ing a foundation status change as explained in section 6.05(2)(w)). 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.   
     
 What are the requirements.06   
 for a completed    
     
 application?    
     
     
     
 Requirements for a    
  (1) A completed application (other than a Form 1023-EZ), including a letter application, is one   
 completed application    
that:   
 other than a Form 1023-EZ    
     
 application    
     
     
  (a) is signed or, in the case of a Form 1023, 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), includes a statement of re-   
     
ceipts 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), see  Form 1023 and Instructions for Form 1023;   
     
     
     
  (d) includes a detailed narrative statement of proposed activities, including each of the fund-   
     
raising 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 dec-   
     
laration signed by an authorized individual certifying that the document is a complete and accurate   
     
copy of the original or otherwise meets the requirements of a "conformed copy" as outlined in   
     
Rev. Proc. 68-14, 1968-1 C.B. 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);   
     
     
     
  (h) is accompanied by the correct user fee (and Form 8718, when applicable).   
     
     
 Requirements for a    
  (2) A Form 1023-EZ submitted online at www.pay.gov by an eligible organization is complete   
 completed Form 1023-EZ    
if it:   
 application    
     
     
     
  (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 Instruc-   
     
tions 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.   
     
     
 What are the standards.07   
 for issuing a determination    
     
 letter on tax-exempt status?    
     
     
     
 Tax-exempt status must be    
  (1) A favorable determination letter will be issued to an organization if its completed appli-   
 established in application,    
cation, including attestations and supporting documents, along with any additional information   
 including attestation and    
requested by the Service and provided by the organization, establishes that it meets the particular   
 supporting documents    
requirements of the section under which exemption from Federal income tax is claimed.   
     
     
 Tax-exempt status may be    
  (2) (a) For all applications other than a Form 1023-EZ, tax-exempt status may be recognized   
 recognized in advance of    
in advance of the organization's operations if the proposed activities are described in sufficient   
 actual operations    
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, in-   
     
cluding 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 qual-   
     
ifies 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 organiza-   
     
tion) establish that it meets the requirements for tax-exempt status under § 501(c)(3).   
     
 Even if application is    
  (3) Even though an application is complete, the Service may request additional information   
 complete, additional    
before issuing a determination letter. The failure to respond to a request for additional information   
 information may be    
may result in the closure of the application without a determination letter being issued and without   
 required    
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 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.   
     
     
 Effective date of tax-exempt.08   
 status    
     
     
  (1) In general. A determination letter recognizing tax-exempt status of an organization de-   
     
scribed in § 501(c), other than § 501(c)(29), is effective as of the date of formation of an orga-   
     
nization 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 recog-   
     
nized from the postmark date of its application or the submission date of its Form 1023 or Form   
     
1023-EZ, as applicable.   
     
     
     
  (3) Application of Treas. Reg. § 301.9100-3:  Organizations required to apply for tax-ex-    
     
 empt status under §§ 505, 508, and 501(c)(29) and the regulations thereunder.    Unlike oth-   
     
er 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 I.R.B. 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 organiza-   
     
tion 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 amend-   
     
ments 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 nonsubstantive amendment, tax-exempt   
     
status will ordinarily be recognized as of the date of formation if it meets the requirements in sec-   
     
tion 6.08(1) of this revenue procedure. Examples of nonsubstantive amendments include correc-   
     
tion 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.   
     
     
 SECTION 7. WHAT    
     
 ARE THE SPECIFIC    
     
 PROCEDURES FOR    
     
 DETERMINATION    
     
 LETTER REQUESTS ON    
     
 FORM 8940?    
     
     
     
 In general.01 This section explains the specific procedures for requesting a determination letter by sub-   
     
mitting Form 8940, including requests for a determination letter on foundation status.   
     
     
 Requests made on Form.02 A request described in section 4.02(5) must be submitted on Form 8940 (except where oth-   
 8940    
erwise permitted, including when such request is made as part of an application for recognition   
     
of exemption), along with all information, documentation, and other materials required by Form   
     
8940 and the instructions thereto, as well as the appropriate user fee provided in Appendix A. For   
     
complete information about filing requirements and the submission process, refer to Form 8940   
     
and the Instructions for Form 8940.   
     
     
 Initial classification of.03 All § 501(c)(3) organizations are classified as private foundations under § 509(a) unless   
 private foundation status    
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, 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 organiza-   
     
tion's determination letter on tax-exempt status.   
     
     
 Under what circumstances.04 (1) Requests to change from one public charity classification to another public charity    
 must an organization    
 classification. On its Form 990, Return of Organization Exempt From Income Tax Under section    
 request a determination    
 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except private foundations), a public   
 of foundation status, and    
charity indicates the paragraph of § 509(a), and subparagraph of § 170(b)(1)(A), if applicable,   
 when is such a request    
under which it qualifies as a public charity. Because of changes in its activities or operations, this   
 optional?    
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 organiza-   
     
tion 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 lon-   
     
ger qualifies as a public charity under § 509(a)(1)-(4), then it becomes a private foundation, and as   
     
such, 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 erro-   
     
neously 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 de-   
     
termination 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.   
     
     
 Not applicable to notices.05   
 submitted by private    
     
 foundations regarding    
     
 terminations under § 507 or    
  (1) The procedures in this revenue procedure do not apply to the notice an organization must   
 changes of status pursuant    
submit in seeking to terminate its private foundation status under § 507.   
 to examination    
     
     
  (2) The procedures in this revenue procedure also do not apply to the examination of an organi-   
     
zation which results in changes to its foundation status.   
     
     
 SECTION 8.    
     
 WITHDRAWAL OF    
     
 A REQUEST FOR    
     
 DETERMINATION    
     
 LETTER    
     
     
     
 Request may be withdrawn.01 A taxpayer may withdraw a request for a determination letter at any time before the deter-   
 prior to issuance of a    
mination letter is issued by the Service. An authorized individual must make such a request in   
 determination letter    
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, 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 appli-   
     
cation 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.     
     
     
 Section 7428 implications of.02 The withdrawal of an application under § 501(c) or (d) is not a failure to make a determi-     
 withdrawal of application    
nation within the meaning of § 7428(a)(2) or an exhaustion of administrative remedies within the   
 under § 501(c) or (d)    
meaning of § 7428(b)(2).     
     
     
 SECTION 9.    
     
 PROCEDURES    
     
 FOR ADVERSE    
     
 DETERMINATION    
     
 LETTERS    
     
     
     
 In general.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.     
     
     
 Types of requests that may.02 The following types of determination letter requests will provide an organization with an   
 receive Independent Office    
opportunity to protest/appeal a proposed adverse determination:     
 of Appeals consideration    
     
     
  (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);   
     
and     
     
     
     
  (3) the classification of the organization as a private operating foundation under § 4942(j)(3).     
     
     
 Contents of proposed.03 If EO Determinations reaches the conclusion that the organization does not meet the re-     
 adverse determination    
quirements for a favorable determination letter and the letter is a type for which an opportunity   
 letter for requests with    
for protest/appeal is available under section 9.02, the Service will issue a proposed adverse deter-     
 appeals rights    
mination 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 con-     
     
ference with the Independent Office of Appeals.     
     
     
     
  The non-acceptance under section 4.10 of a request for a determination letter is not a proposed   
     
adverse determination.     
     
     
 Protest/appeal of a.04 To protest/appeal a proposed adverse determination letter described in section 9.02, the   
 proposed adverse    
organization must submit a statement of the facts, law and arguments in support of its position   
 determination letter on    
within 30 days from the date of the proposed adverse determination letter. The organization must   
 certain issues    
also state whether it is requesting a conference with the Independent Office of Appeals.     
     
     
 Final adverse determination.05 If an organization does not submit a timely protest/appeal of a proposed adverse determina-     
 letter where no protest/    
tion letter on an issue described in section 9.02, a final adverse determination letter will be issued   
 appeal is submitted    
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 a request for a determination letter is not a final ad-   
     
verse determination.   
     
     
 Review of protest by EO.06 If an organization submits a protest/appeal of a proposed adverse determination letter de-   
 Determinations    
scribed in section9.02, EO Determinations will review the protest, and, if it determines that the   
     
organization meets 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 for-   
     
ward 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, which may require the   
     
issuance of a new proposed denial, prior to sending the case to the Independent Office of Appeals.   
     
     
 Consideration by the.07 The Independent Office of Appeals will consider the organization's protest/appeal submit-   
 Independent Office of    
tedin response to a proposed adverse determination letter described in section 9.02. If the Inde-   
 Appeals    
pendent Office of Appeals agrees with the proposed adverse determination, it will either issue a fi -   
     
nal 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 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. 2021-2, this Bulletin.   
     
     
 Effect of new information.08 If the organization submits new information as part of a protest, or during consideration by   
 raised in protest/appeal    
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.   
     
     
 An appeal or protest may.09 An organization may withdraw its protest/appeal before the Service issues a final adverse   
 be withdrawn    
determination letter. Upon receipt of the withdrawal request, the Service will complete the pro-   
     
cessing 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 reme-   
     
dies within the meaning of § 7428(b)(2).   
     
     
 Appeal and conference.10 The opportunity to appeal a proposed adverse determination letter and the conference rights   
 rights not applicable in    
describedabove are not applicable to matters where delay would be prejudicial to the interests   
 certain situations    
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 Gov-   
     
ernment).   
 Adverse determination    
     
 letter on an issue that will.11 If EO Determinations reaches the conclusion that the organization does not meet the re-   
 not receive consideration by    
quirements for a favorable determination on an issue that is not described in section 9.02 (e.g.,   
 the Independent Office of    
advance approval that a potential grant or contribution constitutes an "unusual grant"; exemption   
 Appeals    
from Form 990 filing requirements), the Service generally will advise the organization of its ad-   
     
verse 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.   
     
     
 Possible future updates.12 As part of the implementation of the Taxpayer First Act, Pub. L. 116-25 (2019), the Service   
 related to review by the    
and the Independent Office of Appeals continue to review current policies and procedures and   
 Independent Office of    
prior administrative pronouncements. As a result of this review, there may be additional updates   
 Appeals    
to this revenue procedure or other forms of guidance.   
     
     
 SECTION 10.    
     
 DECLARATORY    
     
 JUDGMENT    
     
 PROVISIONS OF § 7428    
     
     
     
 Actual controversy.01 Generally, a declaratory judgment proceeding under § 7428 can be filed in the United States   
 involving certain issues    
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) which 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 founda-   
     
tion (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 de-   
     
scribed 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 § 501(d) and exempt from tax under § 501(a).   
     
     
 Final determination to.02 A final determination to which § 7428 applies is a determination letter, sent by certified or   
 which § 7428 applies    
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).   
     
 Failure to make a.03 If the Service declines to issue a determination letter under section 3.02 of this revenue   
 determination to which    
procedure to an organization seeking a determination described in section 10.01 of this revenue   
 § 7428 applies    
procedure, the organization may be able to pursue a declaratory judgment under § 7428, provided   
     
that it has exhausted its administrative remedies.   
     
     
 Section 7428 does not apply.04 (1) The non-acceptance for processing of a request under section 4.10 of this revenue pro-   
 to the non-acceptance or    
cedure is not a final determination, or a failure to make a determination, to which § 7428 applies.   
 withdrawal of a request    
     
     
  (2) The withdrawal of an application pursuant to section 8 is not a failure to make a determina-   
     
tion within the meaning of § 7428(b)(2).   
     
     
 Exhaustion of.05 Before filing a declaratory judgment action, an organization must exhaust its administrative   
 administrative remedies    
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), the filing of 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, a completed Form 8940; or   
     
     
     
  (c) For an organization seeking to be described in § 501(c) (other than paragraph (3)) or in   
     
§ 501(d), a completed appropriate Form or letter request (within the meaning of section 6.06(1)).   
     
     
     
  (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, the timely submission of all additional information requested by the Ser-   
     
vice 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) Exhaustion of 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 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.   
     
     
 Not earlier than 270 days.06 An organization will in no event be deemed to have exhausted its administrative remedies   
 after seeking determination    
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, 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. 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).   
     
     
 Service must have.07 The steps described in section 10.05 will not be considered completed until the Service has   
 reasonable time to act on an    
had a reasonable time to act upon a protest/appeal.   
 appeal or protest    
     
     
 SECTION 11.    
     
 FAVORABLE    
     
 DETERMINATION    
     
 LETTERS    
     
     
     
 Reliance on determination.01 A taxpayer ordinarily may rely on a favorable determination letter received from the Ser-   
 letter    
vice, regardless of the format of request submitted, subject to the conditions and limitations de-   
     
scribed in this section.   
     
     
 Limitations on reliance.02   
     
     
     
  (1) Will not apply to another taxpayer. A taxpayer may not rely on, use, or cite as precedent   
     
a determination letter issued to another taxpayer. See  § 6110(k)(3).   
     
     
     
  (2) Material change in facts. A determination letter may not be relied upon by the organization   
     
submitting the request if there is a material change in facts. For a determination letter on tax-ex-   
     
empt 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 orga-   
     
nization submitting the request if it was based on any omission or inaccurate material information   
     
submitted by the organization. Inaccurate material information includes an incorrect representa-   
     
tion or attestation as to the organization's organizational documents, the organization's exempt   
     
purpose, the organization's conduct of prohibited and restricted activities, or the organization's   
     
eligibility to file Form 1023-EZ. See  section 12.01 of this revenue procedure.   
     
     
     
  (4) Change in law. A change in law may affect reliance. See  section 12.01 of this revenue   
     
procedure.   
     
     
 Post-determination review.03   
     
     
     
  (1) Determination letters may be post-reviewed. Determination letters may be reviewed by   
     
EO Determinations Quality Assurance to assure uniform application of the statutes, tax treaties,   
     
regulations, court opinions, or guidance published in the Internal Revenue Bulletin.   
     
     
  (2) Procedures for addressing determination letters reviewed and found to have been is-    
     
 sued in error. If upon post-determination review EO Determinations Quality Assurance con-   
     
cludes, 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 Exam-   
     
inations for consideration.   
     
     
 SECTION 12..01 In general. A determination letter may be revoked or modified:   
 REVOCATION OR    
     
 MODIFICATION OF    
     
 A DETERMINATION    
  (1) by a notice to the taxpayer to whom the determination letter was issued;   
 LETTER    
     
     
  (2) by enactment of legislation or ratification of a tax treaty;   
     
     
     
  (3) by a decision of the Supreme Court of the United States;   
     
     
     
  (4) by the issuance of temporary or final regulations;   
     
     
     
  (5) by the issuance of a revenue ruling, revenue procedure, or other statement published in the   
     
Internal Revenue Bulletin; or   
     
     
     
  (6) automatically, by operation of § 6033(j), for failure to file a required annual return or notice   
     
for three consecutive years.   
     
     
     
   Note: If an organization no longer qualifies under the Code section for which it originally   
     
applied for recognition of exemption, then the determination letter will be revoked, rather than   
     
modified.   
     
     
 Appeal and conference.02 In the case of a revocation or modification of a determination letter described in section   
 procedures in the case of    
9.02, the procedures to protest/appeal the revocation or modification are generally the same as set   
 revocation or modification    
out in section 9 of this revenue procedure. However, organizations revoked under § 6033(j) will   
 of tax-exempt status letter    
not have an opportunity for consideration by the Independent Office of Appeals.   
     
     
 Revocation or modification.03 The revocation or modification of a determination letter may be retroactive if:   
 of a determination letter    
     
 may be retroactive    
     
     
  (1) there has been a change in the applicable law;   
     
     
     
  (2) the organization omitted or misstated material information. A misstatement of material in-   
     
formation 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 re-   
     
stricted 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 pro-   
     
hibited 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 mod-   
     
ified and explain the reasons why it is being revoked or modified retroactively.   
     
     
 Organization may request.04 An organization may seek relief from retroactive revocation or modification of a determi-   
 that retroactivity be limited    
nation letter under § 7805(b). A request for relief under § 7805(b) must be in writing and must be   
 under § 7805(b)    
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 declar-   
     
atory 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 re-   
     
quest 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.   
     
     
 Effective date of revocation.05 Effective date of revocation or modification.   
 or modification of a    
     
 determination letter on tax-    
     
 exempt status    
  (1) Where 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) Where there is a material change in facts, inconsistent with the conclusion of a determina-   
     
tion 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 po-   
     
sition, 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.   
     
     
 SECTION 13.    
     
 DISCLOSURE OF    
     
 APPLICATIONS AND    
     
 DETERMINATION    
     
 LETTERS INCLUDING    
     
 THAT OF FOUNDATION    
     
 STATUS    
     
     
 Determination letter will.01 Sections 6104 and 6110 provide rules for the disclosure of requests, including forms, sup-   
 be disclosed under § 6104    
porting documents, and determination letters issued in response to requests.   
 or § 6110 depending on    
     
 the type of request and the    
     
 type of determination letter    
  (1)  A favorable determination letter issued in response to an application for recognition    
 issued    
 of exemption from Federal income tax under §§ 501 or 521, as well as certain determination    
     
 letters regarding foundation status are disclosed under § 6104.   Determination letters that an   
     
applicant organization is exempt from Federal income tax and letters or documents issued by the   
     
Service that an organization is or is not a private foundation, or described in §§ 509(a), 4940(d)   
     
(2), 4942(j)(3), or 4943(f) are disclosed under § 6104.   
     
     
     
  (2) Other determination letters are disclosed under § 6110. Any determination letter that is   
     
not disclosed under § 6104 is disclosed under § 6110. This includes proposed and final denial of   
     
tax-exempt status when such denial becomes final, advance approval of grant making procedures   
     
described in § 4545(g), advance approval of certain set-asides described in § 4942(g)(2), advance   
     
approval of voter registration activities described in § 4945(f), and advance approval of an unusu-   
     
al grant per Rev. Proc. 2018-32, 2018-23 I.R.B. 739.   
     
     
     
  (3) Whether other determination letters are disclosed under § 6104 or § 6110 will vary based on   
     
the type of determination.   
     
     
 Disclosure of applications,.02 If a favorable determination letter is issued in response to an application for recognition   
 supporting documents, and    
of exemption from Federal income tax under § 501 or § 521, the application form, any support-   
 favorable determination    
ing documents, and any determination letter issued in response to the application (including a   
 letters under § 6104    
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 dis-   
     
closed 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) The public can request information available for public inspection under § 6104(a)(1) by   
     
submitting Form 4506-A, Request for Public Inspection or Copy of Exempt or Political Organi-    
     
 zation IRS Form.    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 exemp-   
     
tion, 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.    
     
     
 Disclosure of determination.03 The Service is required to make any determination letter that is not disclosed under § 6104,   
 letters under § 6110    
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 pro-   
     
posed adverse determination letter and the final adverse determination letter will be released pur-   
     
suant 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 unusu-   
     
al grant per Rev. Proc. 2018-32, 2018-23 I.R.B. 739, 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.   
     
     
 Taxpayer may protest.04 If the determination letter is being disclosed under § 6110, the determination letter will   
 disclosure under § 6110 of    
enclose Notice 437, Notice of Intention to Disclose,  and redacted copies of the final and proposed   
 certain information in a    
adverse determination letters. Notice 437 provides procedures to follow and instructions if the   
 determination letter    
organization disagrees with the deletions proposed by the Service.   
     
     
     
  Within 20 calendar days after the Service receives the response to the Notice 437, the Service   
     
will mail to the taxpayer its final administrative conclusion regarding the deletions to be made.   
     
The taxpayer does not have the right to a conference to resolve any disagreements concerning ma-   
     
terial 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.   
     
     
 Taxpayer may request delay.05 After receiving the Notice 437, but within 60 calendar days after the date of notice, the   
 of public inspection under    
taxpayer may send a request for delay of public inspection under either § 6110(g)(3) or (4). The   
 § 6110    
request for delay must be sent to the Service office indicated on the Notice 437. The request for   
     
delay under § 6110(g)(4) must contain a statement from which the Commissioner of Internal Rev-   
     
enue 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.   
     
     
 Disclosure to state officials.06 The Service may notify the appropriate state officials of a refusal to recognize an organiza-   
 when the Service refuses to    
tion as tax-exempt under § 501(c)(3). See  § 6104(c). The notice to the state officials may include   
 recognize tax-exempt status    
a copy of a proposed or final adverse determination letter the Service issued to the organization.   
 under § 501(c)(3)    
In addition, upon request by the appropriate state official, the Service may make available for in-   
     
spection 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 to be a   
     
refusal to recognize an organization as tax-exempt.   
     
 Disclosure to state officials.07 The Service may disclose to state officials the name, address, and identification number of   
 of information about    
any organization that has applied for recognition of exemption under § 501(c)(3). The Service   
 § 501(c)(3) applicants    
does not consider an organization the application of which is not accepted under section 4.10 to   
     
have applied for recognition of exemption.   
     
     
 SECTION 14. WHAT    
     
 ARE THE USER FEE    
     
 REQUIREMENTS FOR    
     
 DETERMINATION    
     
 LETTERS?    
     
     
     
 Legislation authorizing user.01 Section 7528 directs the Secretary of the Treasury or delegate (Secretary) to establish a   
 fees    
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 pay -   
     
able 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 cat-   
     
egory must not be less than the amount specified in § 7528(b)(3).   
     
     
 Requests to which user fees.02 In general, user fees apply to all requests for determination letters described in this revenue   
 apply    
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.   
     
     
 Requests and other actions.03 Actions which do not require the payment of a user fee include the following:   
 to which user fees do not    
     
 apply    
     
     
  (1) Elections pertaining to automatic extensions of time under Treas. Reg. § 301.9100-1; and   
     
     
     
  (2) Confirmation of tax-exempt status (affirmation letter) (to replace lost tax-exempt status   
     
letter, and to reflect name and address changes).   
     
     
 Exemption from the user.04 Departments, agencies, or instrumentalities of the United States that certify that they are   
 fee requirements    
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.   
     
     
 Requests involving multiple.05   
 fee categories, issues, or    
     
 entities    
     
     
     
  (1) Requests involving several fee categories. Requests submitted as part of an initial applica-   
     
tion (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) is considered a single request.     
     
     
     
  (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 or-   
     
ganizations 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.   
     
     
 Method of payment.06   
     
     
     
  (1) Payment of user fees for applications of recognition of exemption on Form 1023 or    
     
 Form 1023-EZ.    User fees for applications for recognition of exemption on Form 1023 or Form   
     
1023-EZ must be paid through www.pay.gov.   
     
     
     
  (2) Payment of user fees for all other requests. Except as provided in section 14.06(1), 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 institu -   
     
tion holding the funds to transfer funds from the account named on the check to the U.S. 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 elec-   
     
tronic 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.   
     
     
 Transmittal forms.07 Form 8718 is intended to be used as an attachment to applications other than Form 1023 or   
     
Form 1023-EZ for the attachment of the applicable user fee check.   
     
     
 Effect of nonpayment.08 It will be the general practice of the Service that:   
 or payment of incorrect    
     
 amount    
     
     
  (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 process-   
     
ing 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.     
     
     
 Refunds of user fees.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.     
     
     
 Request for reconsideration.10 A taxpayer that believes the user fee charged by the Service for its request for a determi-     
 of user fee    
nation 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 re-   
     
quests. The request should be marked for the attention of "Manager, EO Determinations Quality   
     
Assurance."     
     
     
 SECTION 15..01     
 MAILING ADDRESS    
     
 FOR REQUESTING    
     
 DETERMINATION    
  (1) The following types of requests and applications handled by the EO Determinations Office   
 LETTERS    
should be sent to the Internal Revenue Service Center, at the address in section 15.01(2):     
     
     
  (a) applications for recognition of exemption on Form 1024, Form 1024-A, and Form 1028;   
     
     
     
  (b) requests for determination letters submitted on Form 8940; and   
     
     
     
  (c) requests submitted by letter.   
     
     
     
  (2) The address is:   
     
     
     
  Internal Revenue Service   
     
  P.O. Box 12192   
     
  TE/GE Stop 31A Team 105   
     
  Covington, KY 41012-0192.02 Applications for recognition of exemption on Form 1023 and Form 1023-EZ are handled by   
     
the EO Determinations Office, but must be submitted electronically online at www.pay.gov. Paper   
     
submissions of Form 1023 and Form 1023-EZ will not be accepted..03 Determinations and requests not subject to a user fee (including a Form 1023 that a Cana-   
     
dian registered charity as referenced in Appendix A submits in order to be listed in the Tax Ex-   
     
empt Organization Search database for organizations eligible to receive tax-deductible charitable   
     
contributions (Pub. 78 data) or to determine public charity status) should be sent to the Internal   
     
Revenue Service at the address shown below:   
     
     
     
  Internal Revenue Service   
     
  P.O. Box 2508   
     
  Cincinnati, OH 45201.04 Requests shipped by Express Mail or a private delivery service for all of the above should   
     
be sent to:   
     
     
     
    Internal Revenue Service   
     
  7940 Kentucky Drive TE/GE   
     
  Mail Stop 31A Team 105   
     
  Florence, KY 41042   
     
     
 SECTION 16. EFFECT    
  Revenue Procedures 2020-5 and 2020-8 are superseded.   
 OF THIS REVENUE    
     
 PROCEDURE ON OTHER    
     
 DOCUMENTS    
     
     
     
 SECTION 17. EFFECTIVE    
  This Revenue Procedure is effective January 4, 2021.     
 DATE    
     
     
 SECTION 18.    
  The collections of information contained in this revenue procedure have been reviewed and   
 PAPERWORK    
approved by the Office of Management and Budget in accordance with the Paperwork Reduction   
 REDUCTION ACT    
Act (44 U.S.C. § 3507) under multiple control numbers.   
     
     
     
  The collection of information on Forms 1023 and 1023-EZ have been reviewed and approved   
     
under control number 1545-0047. The collection of information on Forms 1024 and 1024-A have   
     
been reviewed and approved under control number 1545-0047. The collection of information on   
     
Form 1028 has been reviewed and approved under control number 1545-0047. The collection of   
     
information on these forms is required if an organization wants to be recognized as tax-exempt by   
     
the Service. The Service needs the information to determine whether the organization meets the   
     
legal requirements for tax-exempt status.   
     
     
     
  The collection of information for Form 8940 has been approved and reviewed under control   
     
number 1545-2211. This information is required to evaluate and process the request for a deter-   
     
mination letter.   
     
     
     
  The collection of information on Form 2848 has been reviewed and approved under control   
     
number 1545-0150. It is used to authorize someone to act for the respondent in tax matters. It   
     
grants all powers that the taxpayer has except signing a return and cashing refund checks. Data   
     
is used to identify authorized representatives and to ensure that confidential information is not   
     
divulged to unauthorized persons.   
     
     
     
  The collection of information on Form 8718 has been reviewed and approved under control   
     
number 1545-0047. The Omnibus Reconciliation Act of 1990, Pub. L. 101-508 (1990), requires   
     
payment of a "user fee" with each application for a tax-exempt organization determination letter.   
     
Because of this requirement, the Form 8718 was created to provide filers the means to enclose   
     
their payment and indicate what type of request they are making.   
     
     
     
  The collections of information are voluntary, to obtain a benefit. The likely respondents are   
     
tax-exempt organizations and their authorized representatives.   
     
     
     
  An agency may not conduct or sponsor, and a person is not required to respond to, a collection   
     
of information unless the collection of information displays a valid OMB number.   
     
     
     
  Books and records relating to the collection of information must be retained as long as their   
     
contents may become material in the administration of any internal revenue law. Generally, tax   
     
returns and tax return information are confidential, as required by § 6103.   
     
     
 DRAFTING    
  The principal author of this Revenue Procedure is Julia Parnell of the Office of Associate Chief   
 INFORMATION    
Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes). For additional in -   
     
formation, please contact Ms. Parnell at 202-317-4086 (not a toll-free call).   
     
     
 APPENDIX A    
     
 Schedule of User Fees    
     
  This table summarizes the various types of Exempt Organization determination letter user fees.   
     
     
     
ISSUE   
USER FEE   
     
(1) Application for recognition of exemption under § 501(c)(3) submitted on Form 1023-EZ   
     
$275   
(2) All other applications for recognition of exemption under § 501 except for those included in (1) and under   
     
§ 521(other than pension, profit-sharing, and stock bonus plans described in § 401).   
     
$600   
(3) Group exemption letters   
     
$2,500   
   Note:    An additional user fee under (1) or (2) above is also required when a central organization submits   
     
  an initial application for recognition of exemption with its request for a group exemption letter. As ex-    
     
   plained in    Section 3.02(11) of this revenue procedure, the Service is not currently accepting requests for   
     
  group exemption letters.   
     
     
(4) Canadian registered charities   
     
None   
   Note: In accordance with the income tax treaty between the United States and Canada, and pursuant to a   
     
  mutual arrangement between the competent authorities of the two countries, Canadian registered charities   
     
  are automatically recognized as exempt under § 501(c)(3) without filing an application for recognition   
     
  of exemption. For details, see  Notice 99-47, 1999-2 C.B. 391. Therefore, no user fee is required when   
     
  a Canadian registered charity submits a written request to be listed in Tax Exempt Organization Search   
     
  database for organizations eligible to receive tax-deductible charitable contributions (Pub. 78 data), or for   
     
  a determination on its private foundation status. For additional information about the submission process,   
     
  refer to the Form 1023 Instructions.   
     
     
(5) Affirmation Letter - Confirmation of tax-exempt status (to replace lost tax-exempt status letter, and to   
     
reflect name and address changes)   
     
None   
(6) Reclassification of private foundation status, including   
     
     
  -  operating foundation status described in § 4942(j)(3) and exempt operating foundation status de-   
     
  scribed in § 4940(d);   
     
     
  -  a determination that a public charity is described in § 509(a)(3)(i), (ii), or (iii), including whether or   
     
  not a Type III supporting organization is functionally integrated;   
     
     
  -  reclassification of foundation status, including voluntary requests from public charities for private   
     
  foundation status and voluntary requests from public charities, including requests from subordinate   
     
  organizations, to change from one public charity status to another public charity status; or   
     
     
  -  final public charity classification determination for organizations whose advance ruling periods   
     
  expired prior to June 9, 2008 without providing the required information (Form 8940).   
     
$500   
(7) Regulations § 301.9100 relief in connection with applications for recognition of exemption   
     
None   
(8) Section 507 terminations  advance or final ruling under § 507(b)(1)(B) (Form 8940)   
     
$500   
(9) Section 4942(g)(2) set asides - advance approval (Form 8940)   
     
$2,500   
(10) Section 4945 advance approval of organization's grant making procedures (Form 8940)   
     
$2,500   
(11) Section 4945(f) advance approval of voter registration activities (Form 8940)   
     
$2,500   
(12) Section 6033 annual information return filing requirements (including a subordinate organization's   
     
change of filing requirements) (Form 8940)   
     
$500   
(13) Unusual grants to certain organizations under §§ 170(b)(1)(A)(vi) and 509(a)(2) (Form 8940)   
     
$500   
(14) User Fee for determination letters under the jurisdiction of the Determinations Office not otherwise   
     
described or covered in this Appendix.   
$500   
     
     
 APPENDIX B    
       
 Authorized Representatives    
       
  To sign a request for a determination letter or to appear before the Service in connection with the request, the representative must   
be:   
     
     
     
 Attorney    
(a) An attorney who is a member in good standing of the bar of the highest court of any state, possession, ter-   
     
ritory, commonwealth, or the District of Columbia and who is not currently under suspension or disbarment   
     
from practice before the Service. He or she must file a written declaration with the Service on Form 2848   
     
showing current qualification as an attorney and current authorization to represent the taxpayer.   
     
 Certified public    
(b) A certified public accountant who is qualified to practice in any state, possession, territory, commonwealth,   
 accountant    
or the District of Columbia and who is not currently under suspension or disbarment from practice before the   
     
Service. He or she must file a written declaration with the Service on Form 2848 showing current qualification   
     
as a certified public accountant and current authorization to represent the taxpayer.   
     
 Enrolled agent    
(c) An enrolled agent, other than an attorney or certified public accountant, that is currently enrolled to practice   
     
before the Service and is not currently under suspension or disbarment from practice before the Service, in-   
     
cluding a person enrolled to practice only for employee plans matters. He or she must file a written declaration   
     
with the Service on Form 2848 showing current enrollment and authorization to represent the taxpayer. Either   
     
the enrollment number or the expiration date of the enrollment card must be included in the declaration. For   
     
the rules on who may practice before the Service, see  Treasury Department Circular No. 230.   
     
 A person with a    
(d) Any other person, including a foreign representative, who has received a "Letter of Authorization" from   
 "Letter of Authori-    
the Director, Office of Professional Responsibility under section 10.7(d) of Treasury Department Circular No.   
 zation"    
230. He or she must file a written declaration with the Service on Form 2848 (or equivalent power of attorney   
     
and declaration of representative) showing authorization to represent the taxpayer with a copy of the "Letter   
     
of Authorization" attached.   
     
     
A person may make a written request for a "Letter of Authorization" to: Director, Office of Professional Re-   
     
sponsibility, Internal Revenue Service, 1111 Constitution Avenue N.W., Washington, DC 20224. Circular No.   
     
230 section 10.7(d) ("Special appearances") authorizes the Commissioner, or delegate, to allow an individual   
     
who is not otherwise eligible to practice before the Service to represent another person in a particular matter.   
     
 Employee, general    
(e) A regular full-time employee representing his or her employer, a general partner representing his or her   
 partner, bona fide    
partnership, a bona fide officer representing his or her corporation, association, or organized group, a trustee,   
 officer, administra-    
receiver, guardian, personal representative, administrator, or executor representing a trust, receivership, guard-   
 tor, trustee, etc.    
ianship, or estate, or an individual representing his or her immediate family. He or she may be required to file a   
     
written declaration with the Service on Form 2848 showing authorization to represent the taxpayer. See  Form   
     
2848 for more information. A preparer of a return (other than a person referred to in paragraph (a), (b), or (c) of   
     
this Appendix B) who is not a full-time employee, general partner, a bona fide officer, an administrator, trustee,   
     
etc., or an individual representing his or her immediate family may not represent a taxpayer in connection with   
     
a determination letter or a technical advice request. See  section 10.7(c) of Treasury Department Circular No.   
     
230.   
     
 Foreign represen-    
(f) A foreign representative (other than a person referred to in paragraph (a), (b), or (c) of this Appendix B) is   
 tative    
not authorized to practice before the Service and, therefore, must withdraw from representing a taxpayer in   
     
a request for a determination letter. In this situation, the nonresident alien or foreign entity must submit the   
     
request for a determination letter on the individual's or entity's own behalf or through a person referred to in   
     
paragraph (a), (b), or (c) of this Appendix B.