Source: https://legacy.morningside.edu/?pageID=39&docID=%3C!--GLaw-PLR4-ID--%3E
Timestamp: 2020-07-13 22:32:01
Document Index: 323710310

Matched Legal Cases: ['§ 501', '§ 1', '§ 1', '§ 1', '§ 1', '§ 1', '§ 1', '§ 6001']

The EO was incorporated as a not for profit corporation under the laws of * * * the State of and was organized to promote unity and patriotism and * * *. The EO was recognized as an I.R.C. § 501(c)(3) organization and classified as a non-private foundation under section 509(a)(2) per Letter 1045 dated February 5, 20XX. The Internal Revenue Service, (hereafter Service) conducted a correspondence audit commencing with the mailing of Letter 3606 and Information Document Request, (hereafter IDR) 01 on March 19, 20XX.
Treasury Regulation § 1.501(c)(3)-1(a)(1) provides that to be exempt as an organization described in section 501(c)(3) of the Code, the organization must be one that is both organized and operated exclusively for one or more of the purposes specified in that section. These purposes include religious, charitable, scientific, testing for public safety, literary, educational, or prevention of cruelty to children or animals. Treas. Reg § 1.501(c)(3)-1(d)(i).
Treasury Regulations § 1.501(c)(3)-1(c)(1) provides that, an organization will be regarded as "operated exclusively" for one or more exempt purposes only if it engages primarily in activities which accomplish one or more of such exempt purposes specified in section 501(c)(3). An organization will not be so regarded if more than an insubstantial part of its activities is not in furtherance of an exempt purpose.
Treasury Regulation § 1.6001-1(c) states that in addition to such permanent books and records as are required by paragraph (a) of this section with respect to the tax imposed by section 511 on unrelated business income of certain exempt organizations, every organization exempt from tax under section 501(a) shall keep such permanent books of account or records, including inventories, as are sufficient to show specifically the items of gross income, receipts and disbursements. Such organizations shall also keep such books and records as are required to substantiate the information required by section 6033. See section 6033 and §§ 1.6033-1 through -3. Treasury Regulations § 1.6001-1(e) states that the books or records required by this section shall always be kept available for inspection by authorized Internal Revenue Service officers or employees and shall be retained if the contents thereof may be material in the administration of any Internal Revenue law.
In accordance with the above cited provisions of the Code and Regulations under IRC § 6001 and 6033, organizations recognized as exempt from federal income tax must meet certain reporting requirements. These requirements relate to the filing of a complete and accurate annual information (and other required federal tax forms) and the retention of records sufficient to determine whether such entity is operated for the purposes for which it was granted tax-exempt status.