department of the treasury internal_revenue_service te_ge eo examinations commerce street mc 4920dal dallas tx tax_exempt_and_government_entities_division release number release date date date taxpayer_identification_number person to contact employee identification_number employee telephone number uil certified mail - return receipt requested dear this is a final adverse determination_letter as to your exempt status under sec_501 of the internal_revenue_code your exemption from federal_income_tax under sec_501 of the code is hereby revoked effective january 20xx our adverse determination was made for the following reasons organizations described in sec_501 of the code and exempt under sec_501 of the code must be both organized and operated exclusively for exempt purposes you have failed to produce documents or otherwise establish that you are operated exclusively for exempt purposes and that no part of your net_earnings inures to the benefit of private shareholders or individuals the internal_revenue_service was unable to examine your records regarding your receipts expenditures or activities as required by sec_6001 and sec_6033 of the code and revrul_59_95 1959_1_cb_627 contributions to your organization are no longer deductible under sec_170 of the internal_revenue_code you are required to file federal_income_tax returns on form_1120 if you have not already filed these returns and the agent has not provided you instructions for converting your previously filed form_990 to form_1120 you should file these income_tax returns with the appropriate service_center for the tax_year ending december 20xx and for all tax years thereafter in accordance with the instructions of the return processing of income_tax returns and assessments of any taxes due will not be delayed should a petition for declaratory_judgment be filed under sec_7428 of the internal_revenue_code if you decide to contest this determination you may file an action for declaratory_judgment under the provisions of sec_7428 of the code in one of the following three venues united_states tax_court the united_states court of federal claims or the united_states district_court for the district of columbia a petition or complaint in one of these three courts must be filed before the 91st day after the date this determination was mailed to you if you wish to seek review of our determination please contact the clerk of the respective court for rules and the appropriate forms regarding filing petitions for declaratory_judgment by referring to the enclosed publication please note that the united_states tax_court is the only one of these courts where a declaratory_judgment action can be pursued without the services of a lawyer you may write to the courts at the following addresses united_states tax_court second street nw washington dc us court of federal claims madison place nw washington dc u s district_court for the district of columbia constitution ave n w washington dc the taxpayer_advocate_service tas is an independent organization within the irs that can help protect your taxpayer rights tas can offer you help if your tax problem is causing a hardship or you’ve tried but haven’t been able to resolve your problem with the irs if you qualify for tas assistance which is always free tas will do everything possible to help you visit taxpayeradvocate irs gov or call if you have any questions please contact the person whose name and telephone number are shown in the heading of this letter sincerely yours for maria hooke director exempt_organizations examinations enclosures publication ca department of the treasury internal_revenue_service tax_exempt_and_government_entities_division irs exempt_organizations examinations date date taxpayer_identification_number form tax_year s ended person to contact id number contact numbers phone number fax number manager's name id number manager's contact number phone number response due_date certified mail - return receipt requested dear why you are receiving this letter we propose to revoke your status as an organization described in sec_501 of the internal_revenue_code code enclosed is our report of examination explaining the proposed action what you need to do if you agree if you agree with our proposal please sign the enclosed form_6018 consent to proposed action - sec_7428 and return it to the contact person at the address listed above unless you have already provided us a signed form we'll issue a final revocation letter determining that you aren't an organization described in sec_501 after we issue the final revocation letter we’ll announce that your organization is no longer eligible for contributions deductible under sec_170 of the code if we don't hear from you if you don't respond to this proposal within calendar days from the date of this letter we'll issue a final revocation letter failing to respond to this proposal will adversely impact your legal standing to seek a declaratory_judgment because you failed to exhaust your administrative remedies effect of revocation status if you receive a final revocation letter you'll be required to file federal_income_tax returns for the tax_year s shown above as well as for subsequent tax years what you need to do if you disagree with the proposed revocation if you disagree with our proposed revocation you may request a meeting or telephone conference with the supervisor of the irs contact identified in the heading of this letter you also may file a protest with the letter rev catalog number 34809f irs appeals_office by submitting a written request to the contact person at the address listed above within calendar days from the date of this letter the appeals_office is independent of the exempt_organizations division and resolves most disputes informally for your protest to be valid it must contain certain specific information including a statement of the facts the applicable law and arguments in support of your position for specific information needed for a valid protest please refer to page one of the enclosed publication how to appeal an irs decision on tax-exempt status and page six of the enclosed publication the examination process publication also includes information on your rights as a taxpayer and the irs collection process please note that fast track mediation referred to in publication generally doesn’t apply after we issue this letter you also may request that we refer this matter for technical_advice as explained in publication please contact the individual identified on the first page of this letter if you are considering requesting technical_advice if we issue a determination_letter to you based on a technical_advice_memorandum issued by the exempt_organizations rulings and agreements office no further irs administrative appeal will be available to you contacting the taxpayer_advocate office is a taxpayer right you have the right to contact the office_of_the_taxpayer_advocate their assistance isn’t a substitute for established irs procedures such as the formal appeals process the taxpayer_advocate can't reverse a legally correct_tax determination or extend the time you have fixed by law to file a petition in a united_states court they can however see that a tax matter that hasn't been resolved through normal channels gets prompt and proper handling you may call toll-free and ask for taxpayer_advocate assistance if you prefer you may contact your local taxpayer_advocate at internal_revenue_service office_of_the_taxpayer_advocate for additional information if you have any questions please call the contact person at the telephone number shown in the heading of this letter if you write please provide a telephone number and the most convenient time to call if we need to contact you thank you for your cooperation sincerely margaret von lienen director eo examinations enclosures report of examination form_6018 publication publication letter rev catalog number 34809f a form 886a department of the treasury - internal revenue schedule no or exhibit service explanation of items name of taxpayer year period ended december 20xx issue whether described within internal_revenue_code sec_501 is operating for exempt purposes facts form_1023 - application_for recognition of exemption under sec_501 internal_revenue_code c of the on february 20xx hereinafter or organization filed form_1023 with the internal_revenue_service hereinafter irs or the service the application described their primary mission to operate for the advancement of charitable religious educational and scientific purposes through various projects examples were the following e disseminating educational materials in several areas - - - providing informational materials for the injured and disable with regard to their varying options under the current legal system educating young people character advocating that physical force should be limited to self-defense providing the structural relationship necessary for student and teacher mentor relationships based on the realization that character and effective skills may best be learned by observation and evaluation building philosophy by pursuant to e disseminating informational materials in several areas - - - providing a registry of environmentally polluted sites as well as providing an overview of the different issues and concerns regarding manmade pollution and its effects on human health and the environment providing information and examples of circumstances where the lives of innocent victims are transformed by wrongful accusations or false light portrayals the significant impact of false allegations on the lives of the innocent will be examined providing information and education about resolving potentially serious health problems which may be aggravated by long term exposure to stress in a letter dated june 20xx sec_501 c of the internal_revenue_code was recognized as an organization described in form 886-a crev department of the treasury - internal_revenue_service page -1- form 886a department of the treasury - internal revenue schedule no or exhibit service explanation of items name of taxpayer year period ended december 20xx since their recognition organization has been filing form 990-n postcard organization status is active as a not for profit corporation in the examination in a letter dated august 20xx selected for examination for tax_year ended december 20xx was notified that organization had been in the first communication with the organization on september 20xx representative stated that organization had not had any activities and or financial transactions since its formation organization hasn’t been operating their activities have not been provided and organization does not have any bank account or financial documentation this information was confirmed during a meeting with the representative on september 20xx law sec_501 of the code exempts from federal_income_tax organizations organized and operated exclusively for charitable educational and other exempt purposes provided that no part of the organization’s net_earnings inures to the benefit of any private_shareholder_or_individual sec_1_501_c_3_-1 of the regulations provides that in order to be exempt as an organization described in sec_501 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 if an organization fails to meet either the organizational_test or the operational_test it is not exempt sec_1_501_c_3_-1 of the regulations provides that an organization will not be regarded as operated exclusively for exempt purposes if more than an insubstantial part of its activities is not in furtherance of exempt purposes taxpayer’s position the exempt organization’s position has not been determined government's position sec_1_501_c_3_-1 of the regulations stated that in order to be exempt as an organization described in sec_501 of the code the organization must be one that is both organized form 886-a rev department of the treasury - internal_revenue_service page -2- form 886a department of the treasury - internal revenue name of taxpayer service explanation of items schedule no or exhibit year period ended december 20xx and operated exclusively for one or more of the purposes specified in that section if an organization fails to meet either the organizational_test or the operational_test it is not exempt failed to establish their compliance with the operational_test in order to maintain their c exemption conclusion it is the irs's position that the organization does not qualify as exempt from federal_income_tax under sec_501 of the internal_revenue_code form 886-a crev department of the treasury - internal_revenue_service page -3-


internal_revenue_service department of the treasury number release date index number washington dc person to contact telephone number refer reply to cc psi b04-plr-144448-02 date january re legend year year date date date date date date date date date date date date grantor_trust son daughter daughter law firm law firm a b c d e f g h i plr-144448-02 dear this is in response to your letter dated date requesting an extension of time under sec_301_9100-3 of the procedure and administration regulations to make an allocation of the generation-skipping_transfer gst tax exemption the facts and representations submitted are summarized as follows grantor established trust an irrevocable_trust for the benefit of grantor’s children and descendants on date trust was drafted by law firm article first of trust provides that the trustees shall divide trust into three shares one for each of grantor’s children son daughter and daughter article second provides that each share would be administered as a separate trust for each child of grantor as follows income or principal may be paid to any one or more of the child and the child’s issue for any purpose at the discretion of the disinterested trustee any net_income not so paid may be added to principal at any time trust shall terminate twenty years after the death of the last to die of grantor’s children and grandchildren who were living on the date that trust was established the remaining principal and any balance of net_income will be distributed by right of representation to the child’s then living issue or if none by right of representation to grantor’s then living issue on the termination_date if at any time prior to the termination_date neither the child nor any issue of the child is then living the then remaining principal and any balance of net_income is to be added in equal shares to the other children’s trusts then being administered on date grantor made a gift of dollar_figurea in securities to each child’s trust law firm prepared the gift_tax_return form_709 and filed the form on date on date grantor made a gift of dollar_figureb in securities to each child’s trust law firm prepared the gift_tax_return and filed the form on date on date grantor made a gift of dollar_figurec in securities to each child’s trust law firm prepared the gift_tax_return and filed the form on date on each return law firm inadvertently failed to allocate any of grantor’s gst tax exemption to the transfers on date and date in year son acting on behalf of grantor under a power_of_attorney transferred dollar_figured of grantor’s cash and dollar_figuree of securities owned by the grantor outright to each of grantor’s children and grandchildren on date grantor died the executor of grantor’s estate hired law firm to settle grantor’s estate and to prepare grantor’s estate_tax_return form_706 and the form_709 for the gifts made on dates in the course of preparing those tax plr-144448-02 returns law firm discovered law firm 2’s failure to allocate gst_exemption on the earlier gift_tax returns pursuant to the advice of law firm the decedent’s executor filed a form_709 reporting the gifts made on dates and allocated gst tax exemption to the gifts made on date to the extent these outright gifts exceeded the gift_tax annual exclusion under sec_2503 of the internal_revenue_code in addition pursuant to the advice of law firm on the form_706 filed for grantor’s estate the executor made a late allocation of grantor’s remaining gst_exemption to son’s trust and daughter 1’s trust based on the foregoing facts and representations you request an extension of time under sec_2642 and sec_301_9100-1 and sec_301_9100-3 to make the following allocations of gst_exemption allocation of dollar_figurea of gst_exemption to each of son’s trust daughter 1's trust and daughter 2's trust with respect to grantor’s date transfer to those trusts allocation of dollar_figureb of gst_exemption to each of son’s trust daughter 1's trust and daughter 2's trust with respect to grantor’s date transfer to those trusts allocation of dollar_figuref of gst_exemption to each of son’s trust daughter 1's trust and daughter 2's trust with respect to grantor’s date transfer to those trusts sec_2601 imposes a tax on every generation-skipping_transfer gst within the meaning of subchapter_b a gst is defined under a as a taxable_distribution a taxable_termination and a direct_skip sec_2602 provides that the amount of the gst tax is determined by multiplying the taxable_amount by the applicable_rate sec_2641 provides that the term applicable_rate means with respect to any gst transfer the product of the maximum_federal_estate_tax_rate and the inclusion_ratio with respect to the transfer under sec_2642 the inclusion_ratio with respect to any property transferred in a generation-skipping_transfer is generally defined as the excess of over the applicable_fraction the applicable_fraction as defined in sec_2642 is a fraction the numerator of which is the amount of gst_exemption under sec_2631 allocated to the trust or to property transferred in a direct_skip and the denominator is the value of the property transferred to the trust or involved in the direct_skip sec_2631 provides that for purposes of determining the inclusion_ratio every individual shall be allowed a gst_exemption of dollar_figure adjusted for inflation under sec_2631 which may be allocated by such individual or his executor to any property with respect to which such individual is the transferor sec_2631 provides that any allocation under sec_2631 once made shall be irrevocable plr-144448-02 application of revproc_98_61 1998_2_cb_811 to the facts of this case results in a generation-skipping_transfer_tax_exemption for year under sec_2631 of dollar_figureg sec_2632 provides that any allocation by an individual of his gst_exemption under sec_2631 may be made at any time on or before the date prescribed for filing the estate_tax_return for such individual’s estate determined with regard to extensions regardless of whether such a return is required to be filed sec_26_2632-1 of the generation-skipping_transfer_tax regulations provides that an allocation of gst_exemption to property transferred during the transferor’s lifetime other than in a direct_skip is made on form_709 sec_2642 provides that except as provided in sec_2642 if the allocation of gst_exemption to any transfers of property is made on a gift_tax_return filed on or before the date prescribed by sec_6075 for such transfer or is deemed to be made under sec_2632 or c - a the value of such property for purposes of sec_2642 shall be its value as finally determined for purposes of chapter within the meaning of sec_2001 or in the case of an allocation deemed to have been made at the close of an estate_tax_inclusion_period its value at the time of the close of the estate_tax_inclusion_period and b such allocation shall be effective on and after the date of such transfer or in the case of an allocation deemed to have been made at the close of an estate_tax_inclusion_period on and after the close of such estate_tax_inclusion_period sec_2642 provides generally that the secretary shall by regulation prescribe such circumstances and procedures under which extensions of time will be granted to make an allocation of gst_exemption described in sec_2642 or and an election under sec_2632 or c such regulations shall include procedures for requesting comparable relief with respect to transfers made before the date of the enactment of this paragraph sec_2642 provides that in determining whether to grant relief the secretary shall take into account all relevant circumstances including evidence of intent contained in the trust instrument or instrument of transfer and such other factors as the secretary deems relevant for purposes of determining whether to grant relief under this paragraph the time for making the allocation or election shall be treated as if not expressly prescribed by statute notice_2001_50 2001_34_irb_189 provides that under sec_2642 the time for allocating the gst_exemption to lifetime transfers and transfers at death the time for electing out of the automatic allocation rules and the time for electing to treat any trust as a generation-skipping_trust are to be treated as if not expressly prescribed by statute the notice further provides that taxpayers may seek an extension of time to make an allocation described in sec_2642 or b or an plr-144448-02 election described in sec_2632 or c under the provisions of sec_301_9100-3 under sec_301_9100-1 the commissioner may grant a reasonable extension of time under the rules set forth in sec_301_9100-3 to make a regulatory election or a statutory election but no more than months except in the case of a taxpayer who is abroad under all subtitles of the code except subtitles e g h and i under sec_301_9100-1 a regulatory election includes an election whose due_date is prescribed by a notice published in the internal_revenue_bulletin in accordance with sec_2642 and notice_2001_50 taxpayers may seek an extension of time to make an allocation described in sec_2642 or b or an election described in sec_2632 or c under the provisions of sec_301_9100-3 requests for relief under sec_301_9100-3 will be granted when the taxpayer provides the evidence to establish to the satisfaction of the commissioner that the taxpayer acted reasonably and in good_faith and that granting relief will not prejudice the interests of the government sec_301_9100-3 provides that a taxpayer is deemed to have acted reasonably and in good_faith if the taxpayer reasonably relied on a qualified_tax professional including a tax professional employed by the taxpayer and the tax professional failed to make or advise the taxpayer to make the election based on the facts submitted and the representations made we conclude that the requirements of sec_301_9100-3 have been satisfied therefore the estate of grantor is granted an extension of time of sixty days from the date of this letter to make allocations of her gst_exemption as follows allocation of dollar_figurea of gst_exemption to each of son’s trust daughter 1's trust and daughter 2's trust with respect to grantor’s date transfer to those trusts allocation of dollar_figureb of gst_exemption to each of son’s trust daughter 1's trust and daughter 2's trust with respect to grantor’s date transfer to those trusts allocation of dollar_figuref of gst_exemption to each of son’s trust daughter 1's trust and daughter 2's trust with respect to grantor’s date transfer to those trusts the allocations should be made on supplemental form sec_709 filed with the internal_revenue_service center cincinnati ohio a copy of this letter should be attached to each supplemental form_709 copies are enclosed for this purpose these allocations will be effective as of the date of each gift in view of the relief granted herein the grantor is deemed to have used dollar_figureh of her available gst_exemption prior to the transfers on date and date accordingly the allocation of gst_exemption made by the grantor’s executor with respect to the gifts on dates on the form_709 reporting those transfers is void except for dollar_figurei dollar_figureg exemption for year less dollar_figureh that will be allocated pursuant to the relief granted above plr-144448-02 the allocation made by decedent’s executor on the form_706 with respect to son’s trust and daughter 1’s trust is void in accordance with the power_of_attorney on file with this office a copy of this letter is being sent to the taxpayer except as expressly provided herein no opinion is expressed or implied concerning the tax consequences of any aspect of any transaction or item discussed or referenced in this letter the rulings contained in this letter are based upon information and representations submitted by the taxpayer and accompanied by a penalty of perjury statement executed by an appropriate party while this office has not verified any of the material submitted in support of the request for rulings it is subject_to verification on examination this ruling is directed only to the taxpayer s requesting it sec_6110 provides that it may not be used or cited as precedent sincerely heather c maloy associate chief_counsel passthroughs and special industries enclosures copy for sec_6110 purposes copy of this letter


department of the treasury washington dc person to contact ------------------------ id no --------------- telephone number --------------------- refer reply to cc fip b01 plr-111571-10 date date internal_revenue_service number release date index number -------------------- ------------------- ---------------------------------- ------------------------------------------- ----------------------------- -------------- ------------------------------------ legend fund ----------------------------------------------------------- ------------------------------------ fund ----------------------------------------------------------- ---------------------------------------------------------- ------------------------------------- fund ----------------------------------------------------------- ---------------------------------------------------------- -------------------------------------- fund ----------------------------------------------------------- ---------------------------------------------------------- -------------------------------------- fund ----------------------------------------------------------- ---------------------------------------------------------- ------------------------------------------------ fund ----------------------------------------------------------- ---------------------------------------------------------- ----------------------------------------- trust trust --------------------- ------------------------------------------------ plr-111571-10 state date date date index a b c d e f -------------------- ------------------ ------------------------- ------------------- ------------------------------------------------------------------ ---------- ----------------------------- ---- -- -------------------- ------------------------------------------ g -------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- - --------- dear ------------- this responds to the request dated date and supplemental correspondence dated date submitted by your authorized representative on behalf of the funds funds request that the internal_revenue_service rule that income earned from investments in the commodity-linked note described in this letter constitutes qualifying_income to the funds under sec_851 of the internal_revenue_code_of_1986 as amended the code facts fund fund fund fund fund and fund each a fund and collectively the funds qualify and are treated as regulated_investment_companies rics under sec_851 of the code each fund is a series of an open-end management investment_company registered under the investment_company act of u s c 80a-1 et seq as amended the act fund sec_1 and plr-111571-10 are series of trust a business_trust organized under the laws of state fund is a series of trust also a business_trust organized under the laws of state the funds are accrual_method taxpayers whose annual_accounting_period ends on date the funds intend to invest in commodity-linked notes having the following terms and conditions the note the note will be issued to a fund at a face value of dollar_figurea its payout formula will be determined with reference to index the term of the note will be b each fund as holder of a note will have the right to put the note to the issuer at the calculated redemption price based upon the closing index value as of the end of the next business_day after notification to the issuer or as of the same day closing value if notice is made by ten o’clock in the morning new york time in addition if the index value falls to a level that is equal to or more than c below the initial reference value on any day the note will knockout and automatically redeem at the calculated redemption price based upon the closing index as of the end of the next business_day if the note has not been knocked out by date the note will be automatically redeemed at maturity on date at the calculated redemption price based upon the closing index as of date the repayment obligation upon early redemption knockout or at maturity is calculated under a formula that provides for an amount equal to the face_amount of the note multiplied by a leveraged adjusted change in the index value the note will use a leverage factor of d the adjusted change in the index value is reached by taking the percentage of the increase or decrease of the beginning value of index compared to the ending value of index for the applicable_period and subtracting an issuer fee in the amount of e and an interest rate of f in addition to the amount received under the formula a payout upon redemption knockout or at maturity will include any unpaid coupon payments at the coupon rate of g the funds make the following representations with respect to the note the issuer of the note will receive payment from each fund for the note substantially contemporaneously with the delivery of the note to the fund once issued the funds will not need to make any additional payments to the issuer of the note the issuer of the note is not subject by the terms of the note to mark-to- market margining requirements of the commodities exchange act u s c as amended the cea and the note is not marketed as a contract of sale of a commodity for future delivery or option for future delivery on such a contract subject_to the cea plr-111571-10 law and analysis sec_851 provides that a corporation shall not be considered a ric for any taxable_year unless it meets an income test under this test at least percent of its gross_income must be derived from certain enumerated sources sec_851 defines qualifying_income in relevant part as - dividends interest payments_with_respect_to_securities_loans as defined in sec_512 and gains from the sale_or_other_disposition of stock_or_securities as defined in sec_2 of the act or foreign_currencies or other income including but not limited to gains from options futures or forward contracts derived with respect to the ric’s business of investing in such stock securities or currencies sec_2 of the act defines the term security as - any note stock treasury_stock security future bond debenture evidence_of_indebtedness certificate of interest or participation in any profit-sharing agreement collateral-trust certificate preorganization certificate or subscription transferable share investment contract voting-trust certificate certificate of deposit for a security fractional undivided_interest in oil gas or other mineral rights any put call straddle option or privilege on any security including a certificate of deposit or on any group or index of securities including any interest therein or based on the value thereof or any put call straddle option or privilege entered into on a national securities exchange relating to foreign_currency or in general any interest or instrument commonly known as a security or any certificate of interest or participation in temporary or interim certificate for receipt for guarantee of or warrant or right to subscribe to or purchase any of the foregoing sec_2 of the cea provides that the cea is not applicable to a hybrid instrument that is predominantly a security sec_2 of the cea provides that a hybrid instrument shall be considered to be predominantly a security if - a the issuer of the hybrid instrument receives payment in full of the purchase_price of the hybrid instrument substantially contemporaneously with the delivery of the hybrid instrument b the purchaser or holder of the hybrid instrument is not required to make any payment to the issuer in addition to the purchase_price paid under subparagraph a whether as margin settlement payment or otherwise during the life of the hybrid instrument or at maturity plr-111571-10 c the issuer of the hybrid instrument is not subject by the terms of the instrument to mark-to-market margining requirements and d the hybrid instrument is not marketed as a contract of sale of a commodity for future delivery or option on such a contract subject_to the cea sec_2 of the cea provides that for purposes of sec_2 of the cea mark-to-market margining requirements do not include the obligation of an issuer of a secured debt_instrument to increase the amount of collateral held in pledge for the benefit of the purchaser of the secured debt_instrument to secure the repayment obligations of the issuer under the secured debt_instrument conclusion based on the facts as represented we rule that income and gain arising from the note constitutes qualifying_income to the funds under sec_851 of the code this ruling is directed only to the taxpayers who requested it and is limited to the facts as represented by the taxpayers sec_6110 provides that this letter may not be used or cited as precedent in accordance with the power_of_attorney on file with this office a copy of this letter is being sent to your authorized representative sincerely diana imholtz diana imholtz chief branch office of associate chief_counsel financial institutions and products


department of the treasury internal_revenue_service washington d c ter rata may tax_exempt_and_government_entities_division uniform issue list xxx xxx xxx legend taxpayer a taxpayer b amount amount date date date financial advisor g financial_institution b financial_institution a financial_institution cc financial_institution d fund z ira p xxx xxx page ira q ira r ira s ira t ira u account x dear xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx this is in response to your request submitted on your behalf by your authorized representative dated date as supplemented by correspondence dated date and date in which you request a waiver of the 60-day rollover requirement contained in sec_408 of the internal_revenue_code the code’ the following facts and representations have been submitted under penalty of perjury in support of the ruling requested taxpayer a age received a distribution of amount from ira p on date taxpayer a asserts that his failure to accomplish a rollover of amount within the 60-day period prescribed by sec_408 of the code was due to his reliance on erroneous advice provided by financial advisor g taxpayer a further represents that amount has not been used for any other purpose taxpayer b age received a distribution of amount from ira q on date taxpayer b asserts that her failure to accomplish a rollover of amount within the 60-day period prescribed by sec_408 of the code was due to her reliance on erroneous advice provided by financial advisor g taxpayer b further represents that amount has not been used for any other purpose taxpayer a decided to change his investment in ira p similarly taxpayer b decided to change her investment in ira q financial advisor g presented a loan investment opportunity to taxpayer a and taxpayer b on date taxpayer a moved amount out of ira p at financial_institution a in order to take advantage of this loan investment xxx page opportunity through self-directed_ira r at financial_institution b on date taxpayer b moved amount out of ira q at financial_institution a in order to take advantage of this loan investment opportunity through self-directed_ira s at financial_institution b taxpayer a entrusted the transfer of amount to financial advisor g taxpayer b entrusted the transfer of amount to financial advisor g instead of depositing amount into ira r then investing in the loan investment opportunity with fund z financial advisor g and a representative of fund z deposited the distributed assets of ira p directly into fund z’s account x a non-ira account with financial_institution c similarly instead of depositing amount into ira s then investing in the loan investment opportunity with fund z financial advisor g and a representative of fund z deposited the distributed assets of ira q directly into fund z's account x then financial representative g and the representative of fund z used the deposited amounts in account x to purchase investment notes from fund z directly self-directed_ira r would not accept the investment notes of fund z financial_institution b required that any assets within self-directed_ira r be purchased with funds already within ira r similarly self-directed_ira s would not accept the investment notes from fund z financial_institution b required that any assets within self-directed_ira s be purchased with fund already within ira s by the time financial advisor g realized his error the 60-day period to complete the tax-free rollovers had expired financial advisor g’s erroneous advice resulted in taxpayer a failing to deposit the distributed_amount into ira r within days of the distribution from ira p financial advisor g’s erroneous advice also resulted in taxpayer b failing to deposit the distributed_amount into ira s within days of the distribution from ira q financial advisor g acknowledged in writing that he provided erroneous advice because he misunderstood the procedures for acquiring the investment notes of fund z and placing them within a self-directed_ira upon discovery that amount was not invested in ira s taxpayer b arranged to deposit amount into self-directed_ira u at financial_institution d on date taxpayer b deposited amount into ira u at financial_institution d based on the above facts and representations you request a ruling that the internal_revenue_service service waive the 60-day rollover requirement contained in sec_408 of the code with respect to the distributions of amount and amount upon discovery that amount was not invested in ira r taxpayer a arranged to deposit amount into self-directed_ira t at financial_institution d on date taxpayer a deposited amount into ira t at financial_institution d bo xxx page sec_408 of the code provides that except as otherwise provided in sec_408 any amount_paid or distributed out of an ira shall be included in gross_income by the payee or distributee as the case may be in the manner provided under sec_72 of the code sec_408 of the code defines and provides the rules applicable to ira_rollovers sec_408 of the code provides that sec_408 of the code does not apply to any amount_paid or distributed out of an ira to the individual for whose benefit the ira is maintained if- i the entire amount received including money and any other_property is paid into an ira for the benefit of such individual not later than the 60th day after the day on which the individual receives the payment or distribution or ii the entire amount received including money and any other_property is paid into an eligible_retirement_plan other than an ira for the benefit of such individual not later than the 60th day after the date on which the payment or distribution is received except that the maximum amount which may be paid into such plan may not exceed the portion of the amount received which is includible in gross_income determined without regard to sec_408 sec_408 of the code provides that sec_408 does not apply to any amount described in sec_408 received by an individual from an ira if at any time during the 1-year period ending on the day of such receipt such individual received any other amount described in sec_408 from an ira which was not includible in gross_income because of the application of sec_408 sec_408 of the code provides a similar 60-day rollover period for partial rollovers sec_408 of the code provides that the secretary may waive the 60-day requirement under sec_408 and sec_408 of the code where the failure to waive such requirement would be against equity or good conscience including casualty disaster or other events beyond the reasonable control of the individual subject_to such requirement only distributions that occurred after date are eligible for the waiver under sec_408 of the code revproc_2003_16 2003_4_irb_359 date provides that in determining whether to grant a waiver of the 60-day rollover requirement pursuant to sec_408 of the code the service will consider all relevant facts and circumstances including errors committed by a financial_institution inability to complete a rollover due to death disability hospitalization incarceration restrictions xxx page imposed by a foreign_country or postal error the use of the amount distributed for example in the case of payment by check whether the check was cashed and the time elapsed since the distribution occurred the information presented and documentation submitted by taxpayer a is consistent with his assertion that his failure to accomplish a timely rollover of amount was caused by his reliance on erroneous advice provided by financial advisor g resulting in his failure to deposit amount into ira r within days of being distributed from ira p the information presented and documentation submitted by taxpayer b with her assertion that her failure to accomplish a timely rollover of amount was caused by her reliance on erroneous advice provided by financial advisor g resulting in her failure to deposit amount into ira s within days of being distributed from ira q is consistent therefore pursuant to sec_408 of the code the service hereby waives the 60-day rollover requirement with respect to the distribution of amount from ira p provided all other requirements of sec_408 of the code except the 60-day requirement were met with respect to the contribution of amount into ira t such contribution will be considered a rollover_contribution within the meaning of sec_408 of the code in addition pursuant to sec_408 of the code the service hereby waives the 60-day rollover requirement with respect to the distribution of amount from ira q provided all other requirements of sec_408 of the code except the 60-day requirement were met with respect to the contribution of amount into ira u such contribution will be considered a rollover_contribution within the meaning of sec_408 of the code no opinion is expressed as to the tax treatment of the transactions described herein under the provisions of any other section of either the code or regulations which may be applicable thereto this letter is directed only to the taxpayers who requested it sec_6110 of the code provides that it may not be used or cited as precedent a copy of this letter_ruling has been sent to your authorized representative pursuant to a power_of_attorney on file in this office xxx page if you wish to inquire about this ruling please contact xxx at xxx xxx xxxx please address all correspondence to se t ep ra t2 sincerely yours dnz la of w donz employee_plans technical group manager lejohn enclosures deleted copy of ruling letter notice of intention to disclose cc xxx xxx xxx


department of the treasury internal_revenue_service te_ge eo examinations commerce street ms dal dallas tx tax_exempt_and_government_entities_division date number release date legend org organization name uil org address xx date address address taxpayer_identification_number person to contact id number contact numbers internal_revenue_code sec_501 certified mail return receipt required last date for filing a petition with the tax_court dear this is a final adverse determination as to your exempt status under sec_501 of the internal_revenue_code our adverse determination was made for the following reasons failure to provide records of the organization and failure to meet the reporting requirements under sec_6001 and sec_6033 of the internal_revenue_code exemption from income_tax is a matter of legislative grace and taxpayers have the burden of establishing their entitlement to exemptions sec_6033 requires organizations exempt from tax to keep such records and render such statements as are required by such rules and regulations as the secretary may prescribe sec_1_6033-2 h requires organizations exempt from tax to submit such additional information as may inquiring into the be required by the internal_revenue_service for the purpose of organization’s exempt status despite numerous requests to you to provide information to conduct an examination of your form_990 for the year ended 20xx no requested information has been provided to us in addition public records show that one or more states have revoked your authority to transact business and conduct affairs in their jurisdiction based on the above we are revoking your organization's exemption from federal_income_tax under sec_501 of the internal_revenue_code effective january 20xx you are required to file form_1120 u s_corporation income_tax return these returns should be filed with the appropriate service_center for the year ending december 20xx and all years thereafter processing of income_tax returns and assessment of any taxes due will not be delayed should a petition for declaratory_judgment be filed under sec_7428 of the internal_revenue_code if you decide to contest this determination in court you must initiate a suit for declaratory_judgment in the united_states tax_court the united_states claim court or the district_court of the united_states for the district of columbia before the day after the date this determination was mailed to you contact the clerk of the appropriate court for the rules for initiating suits for declaratory_judgment you also have the right to contact the office_of_the_taxpayer_advocate however you should first contact the person whose name and telephone number are shown above since this person can access your tax information and can help you get answers you can call or if you prefer you may and ask for taxpayer_advocate assistance contact the local taxpayer_advocate at taxpayer_advocate assistance cannot be used as a substitute for established irs procedures formal appeals processes etc the taxpayer_advocate is not able to reverse legal or technically correct_tax determinations nor extend the time fixed by law that you the taxpayer_advocate can have to file however see that a tax matter that may not have been resolved through normal channels gets prompt and proper handling a petition in the united_states tax_court if you have any questions please contact the person whose name and telephone number are shown in the heading of this letter sincerely yours marsha a ramirez director eo examinations tax_exempt_and_government_entities_division org address department of the treasury internal_revenue_service michigan ave 10th fi detroit mi attn adam standen eo date taxpayer_identification_number form tax_year s ended person to contact id number contact numbers telephone fax certified mail - return receipt requested dear we have enclosed a copy of our report of examination explaining why we believe revocation of your exempt status under sec_501 of the internal_revenue_code code is necessary if you accept our findings take no further action we will issue a final revocation letter if you do not agree with our proposed revocation you must submit to us a written request for appeals_office consideration within days from the date of this letter to protest our decision your protest should include a statement of the facts the applicable law and arguments in support of your position an appeals officer will review your case the appeals_office is independent of the director eo examinations the appeals_office resolves most disputes informally and promptly the enclosed publication the examination process and publication exempt_organizations appeal procedures for unagreed issues explain how to appeal an internal_revenue_service irs decision publication also includes information on your rights as a taxpayer and the irs collection process you may also request that we refer this matter for technical_advice as explained in publication if we issue a determination_letter to you based on technical_advice no further administrative appeal is available to you within the irs regarding the issue that was the subject of the technical_advice letter catalog number 34809f if we do not hear from you within days from the date of this letter we will process your case based on the recommendations shown in the report of examination if you do not protest this proposed determination within days from the date of this letter the irs will consider it to be a failure to exhaust your available administrative remedies sec_7428 of the code provides in part a declaratory_judgment or decree under this section shall not be issued in any proceeding unless the tax_court the claims_court or the district_court of the united_states for the district of columbia determines that the organization involved has exhausted its administrative remedies within the internal_revenue_service we will then issue a final revocation letter we will also notify the appropriate state officials of the revocation in accordance with sec_6104 of the code you have the right to contact the office_of_the_taxpayer_advocate taxpayer_advocate assistance is not a substitute for established irs procedures such as the formal appeals process the taxpayer_advocate cannot reverse a legally correct_tax determination or extend the time fixed by law that you have to file a petition in a united_states court the taxpayer_advocate can however see that a tax matter that may not have been resolved through normal channels gets prompt and proper handling you may call toll-free and ask for taxpayer_advocate assistance if you prefer you may contact your local taxpayer_advocate at if you have any questions please call the contact person at the telephone number shown in the heading of this letter the most convenient time to call if we need to contact you if you write please provide a telephone number and thank you for your cooperation sincerely marsha a ramirez director eo examinations enclosures publication publication report of examination letter catalog number 34809f department of the treasury - internal_revenue_service form_8 a name of taxpayer schedule no or exhibit year period ended december explanation of items org 20xx legend org organization name xx date facts the above-named organization was granted exemption under sec_501 in july 19xx its activities include providing residential treatment to women who are addicted to various substances the organization has not filed form_990 since year ended december 20xx based on our audit of its books_and_records for year ended december 20xx the organization’s gross _ receipts exceed dollar_figure annually law sec_6033 states that every organization_exempt_from_taxation under sec_501 shall file an annual return stating specifically the items of gross_income receipts and disbursements and such other information for the purpose of carrying out the internal revenue laws as the secretary may by forms or regulations prescribe and shall keep such records render under oath such statements make such other returns and comply with such rules and regulations as the secretary may from time to time prescribe revrul_59_95 cumulative bulletin page prescribes that failure to comply with the provisions of sec_6033 of the code may result in the termination of the exempt status of an organization on the grounds that the organization has not established that it is observing the conditions required for the continuation of its tax-exempt status government ’s position as indicated above the organization has not filed forms since year ended december 20xx forms for years ended december 20xx through december 20xx were requested in a written information_document_request on march 20xx the 30-day_letter proposing revocation was issued on june 20xx as of this date we have not yet received the returns since the 30-day period allowed by the proposed revocation report has expired we are now closing the case as an unagreed revocation without protest as indicated in sec_6033 every organization_exempt_from_taxation under sec_501 shall file an annual return further as indicated in revrul_59_95 failure to comply with the provisions of sec_6033 of the code may result in the termination of the exempt status of an organization form 886-a cev department of the treasury - internal_revenue_service page -1- form_886 a name of taxpayer explanation of items department of the treasury - internal_revenue_service org schedule no or exhibit year period ended december 20xx legend org organization name xx date since the organization has not complied with sec_6033 by filing forms we are proposing revocation of its tax exemption under sec_501 taxpayer’s position the taxpayer has not responded in writing to the 30-day_letter proposing revocation conclusion we are proposing revocation of the organization’s tax exemption for failure_to_file forms form 886-a rev department of the treasury - internal_revenue_service page -2-


t c summary opinion united_states tax_court luis bivieca petitioner v commissioner of internal revenue respondent docket no 26281-06s filed date luis bivieca pro_se shawna a early for respondent thornton judge this case was heard pursuant to the provisions of sec_7463 of the internal_revenue_code in effect when the petition was filed pursuant to sec_7463 the decision to be entered is not reviewable by any other court and unless otherwise indicated section references are to the internal_revenue_code_of_1986 in effect for the year in issue and rule references are to the tax_court rules_of_practice and procedure this opinion shall not be treated as precedent for any other case respondent determined a dollar_figure deficiency in petitioner’s federal_income_tax the issues for decision are whether petitioner is entitled to dependency_exemption deductions for two of his girlfriend’s children whether petitioner is entitled to the child_tax_credit whether petitioner is entitled to head_of_household filing_status whether petitioner is entitled to the child_care_credit and whether petitioner is entitled to the earned_income_credit background the parties have stipulated some facts which we incorporate herein when he petitioned this court petitioner resided in new york in petitioner was unmarried he worked as a building superintendent in new york city as part of his compensation he was provided with an apartment in the building petitioner’s girlfriend maria valdez ms valdez had four children including j p and d f who were age sec_3 and respectively in the children were not petitioner’s biological adopted or foster children the court uses initials when referring to a minor child see rule a petitioner filed his federal_income_tax return as a head_of_household reporting dollar_figure of adjusted_gross_income he claimed j p and d f erroneously described as foster children as dependents and also claimed the child_tax_credit the child_care_credit and the earned_income_credit in the notice_of_deficiency respondent disallowed both of petitioner’s claimed dependency_exemptions the child_tax_credit the child_care_credit and the earned_income_credit respondent determined petitioner’s filing_status to be single rather than head_of_household discussion the burden_of_proof is on petitioner to show that he is entitled to the claimed dependency_exemptions and other tax benefits at issue in this case see rule a dependency_exemption a taxpayer is entitled to claim a dependency_exemption only if the claimed dependent is a qualifying_child or a qualifying_relative as defined under sec_152 and d sec_152 a qualifying_child is defined as the taxpayer’s child brother sister stepbrother or stepsister or a descendant of any of them sec_152 and the term child include sec_3 petitioner has not claimed or shown that he meets the requirements under sec_7491 to shift the burden_of_proof to respondent as to any factual issue relating to his liability for tax a legally adopted individual and a foster_child placed in the care of the taxpayer by an authorized_placement_agency or court order sec_152 neither j p nor d f is a qualifying_child because neither is related to petitioner and neither is an adopted or foster_child an individual who is not a qualifying_child may still under certain conditions qualify as a dependent if he or she is a qualifying_relative sec_152 under sec_152 a qualifying_relative is an individual a who bears a qualifying relationship to the taxpayer b whose gross_income for the year is less than the sec_151 exemption_amount dollar_figure for c who receives over one-half of his support from the taxpayer for the taxable_year and d who is not a qualifying_child of the taxpayer or of any other taxpayer for the taxable_year sec_152 lists eight types of qualifying relationships seven of which involve various familial relationships that do not cover petitioner’s claimed dependents sec_152 a - g the eighth type of qualifying relationship applies to an individual other than the taxpayer’s spouse who has the same principal_place_of_abode as the taxpayer and is a member of the taxpayer’s household for the taxable_year sec_152 in order for an individual to be considered a member of a taxpayer’s household the taxpayer must maintain the household and both the taxpayer and the individual must occupy the household for the entire taxable_year sec_1_152-1 income_tax regs a taxpayer maintains a household when he or she furnishes more than one-half of the expenses for the household see sec_2 revrul_64_41 c b part petitioner alleges that in ms valdez and her children were evicted from their bronx apartment and came to live with him in his manhattan apartment where he claims they lived throughout the limited documentary_evidence that petitioner presented does not corroborate this claim for instance although petitioner offered into evidence d f ’s proof of school registration it is for the year rather than and shows d f as residing at a bronx address this and other deficiencies in the record and inconsistencies in petitioner’s testimony leave us unpersuaded that petitioner and the claimed dependents had the same principal_place_of_abode for all of moreover petitioner maintained no receipts or records of any payments made on j p ’s or d f ’s behalf petitioner has not established the amount of support if any he paid on behalf of j p and d f or that his contributions constituted over one-half of their support respondent’s determination on this issue is sustained child_tax_credit sec_24 generally allows a tax_credit for each qualifying_child of a taxpayer as defined under sec_152 who is under years of age sec_24 c as discussed above neither j p nor d f is a qualifying_child of petitioner petitioner is not entitled to the child_tax_credit head_of_household filing_status sec_1 grants a special tax_rate for any individual who qualifies as a head_of_household with exceptions not relevant here the statute generally defines head_of_household as an unmarried individual who maintains as his or her home a household which constitutes for more than one-half of the taxable_year the principal_place_of_abode of either a qualifying_child as defined in sec_152 or a dependent of the taxpayer with respect to whom the taxpayer is allowed a deduction under sec_151 sec_2 as previously discussed neither j p nor d f is a qualifying_child of petitioner and petitioner is not entitled to a dependency_exemption deduction for j p or d f accordingly petitioner is not entitled to head_of_household filing_status for child_care_credit sec_21 and b generally provides for a child_care_credit with respect to employment-related_expenses that are incurred to enable the taxpayer to be gainfully_employed including expenses to care for a qualifying_individual with exceptions not relevant here a qualifying_individual is generally defined as an individual who is either a qualifying_child of the taxpayer within the meaning of sec_152 who has not turned or a dependent of the taxpayer who is physically or mentally incapable of caring for himself or herself and shares the same place of abode with the taxpayer for more than one-half of the taxable_year sec_21 as previously discussed j p and d f are not qualifying children of petitioner within the meaning of sec_152 moreover petitioner does not allege and the record does not indicate that either child is physically or mentally incapable of caring for himself or herself further petitioner failed to establish that he actually incurred or paid employment-related_expenses for the care of the children that enabled him to be employed earned_income_credit sec_32 permits an eligible_individual to claim an earned_income_credit against his income_tax_liability to be an on form_2441 child and dependent care expenses attached to his form_1040 u s individual_income_tax_return for petitioner’s claimed employment-related_expenses consisted of dollar_figure allegedly paid to ms valdez to care for j p and d f inconsistently ms valdez testified that she had no income for eligible_individual an individual must either have a qualifying_child or meet certain other requirements sec_32 for an unmarried individual who has no qualifying_child is ineligible for an earned_income_credit if his or her adjusted_gross_income exceeds dollar_figure revproc_2004_71 sec_3 2004_2_cb_970 because j p and d f bore no familial relationship to petitioner they were not qualifying children see sec_32 moreover because petitioner reported adjusted_gross_income of dollar_figure for he is not otherwise eligible for an earned_income_credit to reflect the foregoing for respondent decision will be entered


internal_revenue_service number release date index number ------------------------------------------------------------ ----------------- -------------------------------- ------------------------- ------------------------------------------------------------ ---------------- department of the treasury washington dc third party communication none date of communication not applicable_person to contact ---------------------- id no ------------- telephone number ------------------- refer reply to cc psi plr-101215-08 date date legend ------------------------------------------------------------------------- ----------------------- ---------------------- ----------------- ------------------- ---------------------- x country d1 d2 d3 dear ------------ we received a letter dated date submitted on behalf of x by its authorized representative requesting a ruling under sec_301_7701-3 and sec_301_9100-3 of the procedure and administration regulations specifically the service’s consent is requested to change x’s classification from a partnership to an association_taxable_as_a_corporation effective d3 this letter responds to that request facts x was formed as a limited corporation on d1 under the laws of country x an eligible_entity elected to be a partnership for federal_income_tax purposes effective d2 x represents that as of d3 x had a change_of_ownership of more than fifty percent that would satisfy sec_301_7701-3 plr-101215-08 law sec_301_7701-3 provides that a business_entity that is not classified as a corporation under sec_301_7701-2 or an eligible_entity can elect its classification for federal tax purposes as provided in sec_301_7701-3 sec_301_7701-3 provides that except as provided in sec_301 b unless the entity elects otherwise a foreign eligible_entity is a a partnership if it has two or more members and at least one member does not have limited_liability b an association if all members have limited_liability or c disregarded as an entity separate from its owner if it has a single owner that does not have limited_liability sec_301_7701-3 provides that except as provided in sec_301 c iv and v an eligible_entity may elect to be classified other than as provided in sec_301_7701-3 or to change its classification by filing form_8832 entity classification election with the service_center designated on form_8832 sec_301_7701-3 provides that an election made under sec_301 c i will be effective on the date specified by the entity on form_8832 or on the date filed if no date is specified on the election form the effective date specified on form_8832 can not be more than days prior to the date on which the election is filed and can not be more than months after the date on which the election is filed sec_301_7701-3 provides that if an eligible_entity makes an election under sec_301_7701-3 to change its classification the entity cannot change its classification by election again during the sixty months succeeding the effective date of the election however the commissioner may permit the entity to change its classification by election within sixty months if more than fifty percent of the ownership_interest in the entity as of the effective date of the subsequent election are owned by persons that did not own any interests in the entity on the filing_date or on the effective date of the entity’s prior election sec_301_9100-1 provides that the commissioner in exercising the commissioner's discretion may grant a reasonable extension of time under the rules set forth in sec_301_9100-2 and sec_301_9100-3 to make a regulatory election or a statutory election but no more than months except in the case of a taxpayer who is abroad under all subtitles of the code except subtitles e g h and i sec_301_9100-2 provides the rules governing automatic extensions of time for making certain elections sec_301_9100-3 sets forth the standards the commissioner will use to determine whether to grant an extension of time for regulatory elections that do not meet the requirements of sec_301_9100-2 plr-101215-08 sec_301_9100-3 provides that requests for relief subject_to sec_301_9100-3 will be granted when the taxpayer provides the evidence including affidavits described in sec_301_9100-3 to establish to the satisfaction of the commissioner that the taxpayer acted reasonably and in good_faith and the grant of relief will not prejudice the interests of the government conclusion based on the facts submitted and the representations made we consent to x changing its classification for federal tax purposes less than months after its previous classification change as a result x is granted an extension of time of days from the date of this letter to file form_8832 with the appropriate service_center and to elect to be classified as an association_taxable_as_a_corporation for federal tax purposes effective d3 a copy of this letter should be attached to the form_8832 a copy is enclosed for that purpose except as expressly set forth above we express or imply no opinion concerning the federal tax consequences of the facts discussed above under any other provision of the code this ruling is directed only to the taxpayer requesting it sec_6110 provides that it may not be used or cited as precedent in accordance with a power_of_attorney on file with this office we are sending a copy of this letter to x's authorized representatives sincerely s william p o'shea associate chief_counsel passthroughs special industries enclosures copy of this letter copy for sec_6110 purposes


department of the treasury internal_revenue_service washington dc tax_exempt_and_government_entities_division number release date uil date legend a name of org date1 effective date date2 tax period ended number ein form number tax periods ended date2 person to contact ford allen contact telephone number employee identification_number date3 date of exemption ein number certified mail dear sir or madam contact address internal_revenue_service tege e eo mr fa p o box room baltimore md in a letter dated date3 the service recognized a as a tax-exempt_entity under sec_501 of the internal_revenue_code irc sec_501 of the internal_revenue_code exempts from federal taxation clubs organized and operated exclusively for pleasure recreation and other non-profitable purposes however revrul_75_494 provides that a homeowner’s association may not qualify under sec_501 if the association administers and enforces covenants for preserving the architectural and appearance of the housing development further revrul_72_102 allows a homeowner’s association to qualify for exemption under sec_501 yet revrul_74_99 disallows exemption if the common areas and tp ein facilities that it owns are not allowed to be used and enjoyed by the general_public page based upon the applicable law and facts a no longer meets the requirements for recognition of exemption under sec_501 or any other section of the code this is because the association administers and enforces covenants for preserving the architectural integrity and appearance of the housing development contrary to revrul_75_494 in addition the association cannot qualify for exemption under sec_501 of the code because the housing development’s common areas and facilities more specifically the pool and tennis courts are open only to your members and not to the general_public therefore we are revoking recognition of your organization’s exempt status under sec_501 effective date1 this is a final_determination since you have agreed to our determination by signing form 6018-a on date you do not need to take further action since you will no longer be an exempt_organization you will be required to file federal_income_tax returns on form 1120-h u s income_tax return for homeowners associations for all subsequent years we have received your form 1120-h return for the year ending date2 and will forward it to the appropriate internal_revenue_service center for processing if you have any questions please call or write the contact person whose name and telephone number are shown above if you write please include your telephone number the best time to call you if we need more information and a copy of this letter to help us identify your account thank you for your cooperation cc sincerely r c johnson director eo examinations