internal_revenue_service department of the treasury number release date index number washington dc person to contact telephone number refer reply to cc intl br1-plr-116679-00 date date ty legend a date b country c date d year e dear this is in response to a letter dated date and a supplemental letter dated date submitted by a’s and a’s authorized representative requesting a ruling under sec_877 of the internal_revenue_code_of_1986 code that a’s loss of u s lawful permanent residence did not have for one of its principal purposes the avoidance of u s taxes under subtitle a or subtitle b of the code the information submitted for consideration is substantially as set forth below the ruling contained in this letter is 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 a was born on date b in country c a came to the united_states and became a lawful permanent resident in year e a relinquished his lawful permanent residence plr-116679-00 expatriated on date d on the date a submitted his ruling_request his net_worth exceeded the applicable_threshold set forth in sec_877 of the code sec_877 generally provides that a citizen who loses u s citizenship or a u s long- term resident who ceases to be taxed as a lawful permanent resident individuals who expatriate within the 10-year period immediately preceding the close of the taxable_year will be taxed on u s source income as modified by sec_877 for such taxable_year unless such loss did not have for one if its principal purposes the avoidance of u s taxes sec_2107 and sec_2501 provide special estate and gift_tax regimes respectively for individuals who expatriate with a principal purpose to avoid u s taxes a former citizen or former long-term_resident will be treated as having expatriated with a principal purpose to avoid u s taxes for purposes of sec_877 sec_2107 and sec_2501 if the individual’s average income_tax_liability or the individual’s net_worth on the date of expatriation exceed certain thresholds see sec_877 sec_2107 and sec_2501 a former u s citizen or former long-term_resident whose net_worth or average tax_liability exceeds these thresholds however will not be presumed to have a principal purpose of tax_avoidance if that former citizen or former long-term_resident is described within certain statutory categories and submits a request for a ruling within one year of the date of loss of u s citizenship for the secretary’s determination as to whether such loss had for one of its principal purposes the avoidance of u s taxes see sec_877 sec_2107 and sec_2501 under notice_98_34 1998_27_irb_30 modifying notice_97_19 1997_1_cb_394 an eligible former citizen or long-term_resident will not be presumed to have a principal purpose of tax_avoidance if that former citizen or long-term_resident submits a complete and good_faith request for a ruling as to whether such loss had for one of its principal purposes the avoidance of u s taxes notice_98_34 requires that certain information be submitted with a request for a ruling that an individual’s expatriation did not have for one of its principal purposes the avoidance of u s taxes a is eligible to request a ruling under sec_877 because he became at birth a citizen of country c and continues to be a citizen of country c in addition a’s parents and spouse were also born in country c a submitted all the information required by notice_98_34 including any additional information requested by the service after review of the submission plr-116679-00 accordingly based solely on the information submitted and the representations made it is concluded that a has made a complete and good_faith submission in accordance with sec_877 and notice_98_34 and therefore a will not be presumed to have expatriated with a principal purpose of tax_avoidance it is further concluded that a will not be treated under sec_877 as having as one of her principal purposes of expatriating the avoidance of u s taxes because the information submitted clearly established the lack of a principal purpose to avoid taxes under subtitle a or b of the code this ruling is directed only to the taxpayer s requesting it sec_6110 of the code provides that it may not be used or cited as precedent a copy of this letter must be attached to any income_tax return to which it is relevant in accordance with the power_of_attorney on file with this office a copy of this letter is being sent to the taxpayer sincerely ______________________________ w e williams senior technical reviewer branch no associate chief_counsel international cc


internal_revenue_service number release date index numbers --------------------------------- ------------------------------------------------------ ------------------------ --------------------------------- ------------------------------------- --------------------------------------- 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-122166-09 date date legend x d1 d2 country dear ---------------- ------------------------------------------------------ ------------------------ --------------------------- ---------------- --------------- this is in response to a letter dated date submitted on behalf of x requesting an extension of time under sec_301_9100-3 of the procedure and administration regulations to file an election under sec_301_7701-3 to be treated as a disregarded_entity for federal tax purposes facts according to the information submitted x was formed on d1 under the laws of country x intended to be treated as a disregarded_entity for federal tax purposes effective d2 however x inadvertently failed to timely file form_8832 entity classification election to be treated as a disregarded_entity for federal tax purposes effective d2 plr-122166-09 law and analysis 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 an eligible_entity with a single owner can elect to be classified as an association or to be disregarded as an entity separate from its owner sec_301_7701-3 provides guidance on the classification of a foreign eligible_entity for federal tax purposes generally a foreign eligible_entity is treated as an association if all members have limited_liability unless the entity makes an election to be treated otherwise a foreign eligible_entity with a single owner having limited_liability may elect to be treated as a disregarded_entity pursuant to the rules of sec_301_7701-3 sec_301_7701-3 and iii provides that an entity classification election must be filed on form_8832 and can be effective up to days prior to the date the form is filed or up to months after the date the form is filed sec_301_7701-3 provides that an election under sec_301_7701-3 must be signed by - a each member of the electing entity who is an owner at the time the election is filed or b any officer manager or member of the electing entity who is authorized under local law or the entity’s organizational documents to make the election and who represents to having such authorization under penalties of perjury sec_301_7701-3 provides that if a purchasing_corporation makes an election under sec_338 regarding an acquired subsidiary an election under sec_301 c i for the acquired subsidiary can be effective no earlier than the day after the acquisition_date within the meaning of sec_338 under sec_301_9100-1 the commissioner may grant a reasonable extension of time to make a regulatory election or a statutory election but no more than six months except in the case of a taxpayer who is abroad under all subtitles of the internal_revenue_code except subtitles e g h and i section b defines the term regulatory election as including an election whose due_date is prescribed by a regulation published in the federal_register sec_301_9100-1 through provide the standards that the commissioner will use to determine whether to grant an extension of time to make an election sec_301_9100-1 sec_301_9100-2 provides automatic extensions of time for making certain elections sec_301_9100-3 provides rules for requesting extensions of time for regulatory elections that do not meet the requirements of sec_301_9100-2 plr-122166-09 requests for relief under sec_301_9100-3 will be granted when the taxpayer provides evidence to establish that the taxpayer acted reasonably and in good_faith and that granting relief will not prejudice the interests of the government conclusion based solely on the facts submitted and the representations made we conclude that the requirements of sec_301_9100-3 have been satisfied as a result x is granted an extension of time of days from the date of this letter to file a properly executed form_8832 effective d2 with the appropriate service_center to elect to be classified as a disregarded_entity a copy of this letter should be attached to the form_8832 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 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 the power_of_attorney on file with this office a copy of this letter is being sent to your authorized representative sincerely curt g wilson curt g wilson associate chief_counsel passthroughs special industries enclosures copy of this letter copy for sec_6110 purposes


id office uilc cca_2012112812183137 ---------- number release date from ------------------- sent wednesday date pm to --------------- cc ----------- subject re tefra question a sham_partnership is not subject_to tefra if it does not file a partnership return because it does not meet the partnership definition sec_6231 and sec_6233 see the culbertson and tower supreme court cases a legitimate partnership that has a_trust as a pass-thru_partner is subject_to the tefra provisions see rev_rul primco v commissioner the issuance of a notice_of_deficiency based on an indirect method of proof such as bank_deposits or net_worth converts the partnership items and takes the partner out of the tefra provisions sec_301_6231_c_-6


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 b01 plr-126064-17 date date legend x ------------------------- ------------------------------------------- sub -------------------------------------------- -------------------------------------------------- sub -------------------------------------------- ------------------------------------------------------------------ sub -------------------------------------------- ------------------------------------ sub -------------------------------------------- ------------------------------------------------------------------------- sub -------------------------------------------- ------------------------------------- sub -------------------------------------------- -------------------------------------- sub ------------------------- sub -------------------------------------------- --------------------------------------------- trust -------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------- -------- plr-126064-17 --------------------------------------------------------------------- -------------------------- a --------------------------------------------- -------------------------------- b --------------------------------------------- ------------------------------------ c --------------------------------------------- --------------------------------- d --------------------------------------------- ------------------------------- date -------------------------- date -------------------------- date ---------------------- date -------------------------- date ---------------------- date ------------------------ date --------------------- date --------------------- date ------------------- date --------------------------- date ------------------------ date ------------------- date --------------------------- year ------- plr-126064-17 year sec_1 --------------- year sec_2 --------------- year sec_3 --------------- state --------------- dollar_figurea --------------------------------------------------------------- dear ---------------- this responds to a letter dated date and subsequent correspondence submitted on behalf of x by x’s authorized representative requesting relief under sec_1362 of the internal_revenue_code the code and sec_301_9100-3 of the procedure and administration regulations facts according to the information submitted and representations within x was incorporated on date under the laws of state and elected to be treated as an s_corporation effective date on date a was an eligible s_corporation shareholder of x a died on date a’s shares in x were transferred to trust on date x represents that trust was eligible to make an esbt election as of date however as of date the trustee of trust inadvertently failed to timely file an electing_small_business_trust esbt election thereby causing trust to become an ineligible shareholder of x as a result x’s s election terminated effective date x took correction measures and on date the trustee of trust transferred the x shares outright to b c and d all eligible shareholders of x x represents that other than the failure to make a timely esbt election trust has at all times from date until it transferred its x shares on date met the requirements of an esbt under sec_1361 x represents that the failure_to_file the esbt election for trust was discovered in year x represents that trust will file consistently as if a valid esbt election is in place for year x represents it did not file consistently as if a valid esbt election was in place for year sec_1 x shall make a payment of dollar_figurea for year sec_2 x represents that it will file amended returns for year sec_3 effective date x elected to treat sub sub sub sub and sub as qualified subchapter_s subsidiaries qsubs x represents that at all relevant times on and plr-126064-17 after date x has owned all of the outstanding_stock of sub sub sub sub and sub x represents that it has treated sub sub sub sub and sub as qsubs effective date and thereafter and that x has filed tax returns for all relevant tax years consistent with the treatment of sub sub sub sub and sub as qsubs x also made qsub elections for sub effective date and sub effective date x represents that at all relevant times on and after date x has owned all of the outstanding_stock of sub and that at all relevant times on and after date x has owned all of the outstanding_stock of sub x represents that it has treated sub and sub as qsubs effective date and date respectively and thereafter and that x has filed tax returns for all relevant tax years consistent with the treatment of sub and sub as qsubs x represents that as of date sub sub sub sub and sub were merged into x x represents that as of date sub was dissolved and that as of date sub was dissolved sub was incorporated under the laws of state on date x represents that at all times on and after date x has owned all of the outstanding_stock of sub and intended to elect to treat sub as a qsub effective date however due to inadvertence x failed to file form_8869 qualified_subchapter_s_subsidiary election x represents that at all times on and after date x has treated sub as a qsub and that x has filed tax returns for all relevant tax years consistent with the treatment of sub as a qsub x represents that the failure_to_file the qsub election for the sub was discovered in year x represents that on date all of its stock was sold in a transaction in which the parties made an election under sec_338 as a result sub 3’s qsub status terminated date x represents that the circumstances resulting in the failure to make the qsub and esbt elections were inadvertent and not motivated by tax_avoidance or retroactive tax planning in addition x represents that the termination of its s_corporation_election was inadvertent and was not motivated by tax_avoidance or retroactive tax planning x further represents that x has filed its income_tax returns consistent with having a valid s election in effect for all taxable years since x elected to be an s_corporation x represents that other than the failure to make a valid qsub election and a valid esbt election x has qualified as a small_business_corporation at all times since its election on date lastly x and its shareholders agree to make any adjustments required as a condition of obtaining relief under sec_1362 that may be required by the secretary plr-126064-17 law and analysis sec_1361 provides that an s_corporation is a small_business_corporation for which an election under sec_1362 is in effect sec_1361 provides that the terms small_business_corporation means a domestic_corporation which is not an ineligible_corporation and which does not a have more than shareholders b have as a shareholder a person other than an estate a_trust described in sec_1361 or an organization described in sec_1361 who is not an individual c have a nonresident_alien as a shareholder and d have more than class of stock sec_1361 generally provides that a qsub shall not be treated as a separate corporation and all assets liabilities and items of income deduction and credit of a qsub shall be treated as assets liabilities and such items as the case may be of the s_corporation sec_1361 defines a qsub as a domestic_corporation which is not an ineligible_corporation if percent of the stock of the corporation is owned by the s_corporation and the s_corporation elects to treat the corporation as a qualified_subchapter_s_subsidiary sec_1362 provides that an election under sec_1362 shall be terminated whenever at any time on or after the 1st day of the 1st taxable_year for which the corporation is an s_corporation such corporation ceases to be a small_business_corporation sec_1361 of the code provides that for purposes of sec_1361 a_trust all of which is treated under subpart e of part i of subchapter_j of this chapter as owned by an individual who is a citizen or resident_of_the_united_states may be an s_corporation shareholder sec_1361 provides that for purposes of sec_1361 an esbt is a permissible shareholder sec_1361 provides that an election under sec_1361 e shall be made by the trustee any such election shall apply to the taxable_year of the trust for which made and all subsequent taxable years of such trust unless revoked with the consent of the secretary sec_1_1361-1 provides that the trustee of an esbt must make the esbt election by signing and filing with the service_center where the s_corporation files its income_tax return a statement that meets the requirements of sec_1_1361-1 plr-126064-17 sec_1_1361-1 provides that the trustee of an esbt must file the esbt election within the time requirements prescribed in sec_1_1361-1 for filing a qsst election generally within the 16-day-and-2-month period beginning on the day that the stock is transferred to the trust sec_1_1361-3 prescribes the time and manner for making an election to be classified as a qsub sec_1362 provides in relevant part that if an election under sec_1362 by any corporation was not effective for the taxable_year for which made determined without regard to sec_1362 by reason of a failure to meet the requirements of sec_1361 the secretary determines that the circumstances resulting in such ineffectiveness or termination were inadvertent no later than a reasonable period of time after discovery of the circumstances resulting in such ineffectiveness or termination steps were taken so that the corporation for which the termination occurred is a small_business_corporation and the corporation for which the termination occurred and each person who was a shareholder in such corporation at any time during the period specified pursuant to sec_1362 agrees to make the adjustments consistent with the treatment of such corporation as an s_corporation as may be required by the secretary with respect to such period then notwithstanding the circumstances resulting in such ineffectiveness or termination such corporation shall be treated as an s_corporation during the period specified by the secretary sec_301_9100-1 provides that the commissioner may grant a reasonable extension of time 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_9100-1 defines the term regulatory election as an election whose due_date is prescribed by a regulation published in the federal_register or a revenue_ruling revenue_procedure notice or announcement published in the internal_revenue_bulletin sec_301_9100-2 provides the rules governing automatic extensions of time for making certain elections sec_301_9100-3 provides 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 under sec_301_9100-3 a request for relief will be granted when the taxpayer provides evidence to establish to the satisfaction of the commissioner that the taxpayer acted reasonably and in good_faith and granting relief will not prejudice the interests of the government plr-126064-17 conclusion based solely on the facts submitted and the representations made we conclude that the failure of trust to make an esbt election effective date caused an inadvertent termination of x’s s_corporation_election within the meaning of sec_1362 on date pursuant to the provisions of sec_1362 x will be treated as continuing to be an s_corporation beginning on and after date unless x's s_corporation_election is otherwise terminated under sec_1362 this letter_ruling is subject_to the following conditions no later than days from the date of this letter an adjustment payment in the amount of dollar_figurea for year sec_2 and a copy of this letter_ruling must be sent to the following address internal_revenue_service cincinnati service_center west rivercenter blvd covington ky stop terri lackey manual deposit an election to treat trust as an esbt effective date must be made with the appropriate service_center a copy of this letter should be attached to the esbt election and x and each of its shareholders must file any original and amended returns for all open taxable years consistent with the relief granted in this letter if these conditions are not met then this ruling is null and void furthermore if these conditions are not met x must send notification that its s election has terminated to the service_center with which x’s s election was filed furthermore based solely on the facts submitted and representations made we conclude that the requirements of have been satisfied accordingly x is granted an extension of time of days from the date of this letter to elect to treat sub as a qsub effective date the election should be made by filing form_8869 with the appropriate service_center and a copy of this letter should be attached to the election finally sub sub sub sub and sub will be treated as qsubs effective date and thereafter provided sub sub sub sub and sub are otherwise eligible to be treated as qsubs sub will be treated as a qsub effective date sub will be treated as a qsub effective date and sub will be treated as a qsub effective date5 provided sub sub and sub are otherwise eligible to be treated as qsubs except as specifically ruled upon above we express or imply no opinion concerning the federal tax consequences of the facts of this case under any other provision of the code specifically we express or imply no opinion regarding x’s eligibility to be an s_corporation this ruling is directed only to the taxpayer who requested it according to sec_6110 this ruling may not be used or cited as precedent plr-126064-17 pursuant to the power_of_attorney on file with this office we are sending a copy of this letter to your authorized representatives sincerely wendy l kribell wendy l kribell assistant to the branch chief branch office of the associate chief_counsel passthroughs special industries enclosures copy of this letter copy of this letter for sec_6110 purposes


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 intl b02 plr-125289-14 date date ty ------- legend taxpayers ------------------------- ------------------------------ ------------------ ------------------------- company a country y -------------------------------------------- --------- date date year ---------------------- ----------------- ------- dear ---------------------------- this is in response to a letter dated date requesting an extension of time under sec_301_9100-3 to elect the provisions of sec_911 of the internal_revenue_code code for year the rulings contained in this letter are based upon information and representations submitted by taxpayers 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 plr-125289-14 taxpa yers husband and wife are married and filed their income_tax return jointly wife is a physical therapist who was hired by company a to provide health care in country y from date to date taxpayers failed to file form_2555 foreign_earned_income or form 2555-ez foreign_earned_income_exclusion to claim the sec_911 foreign_earned_income_exclusion and did not make a sec_911 election within the time prescribed by sec_1_911-7 sec_911 of the code allows qualified citizens and residents of the united_states living abroad to elect to exclude from gross_income the foreign_earned_income and housing cost amounts of such individuals sec_1_911-7 sets forth the procedural rules for making a valid sec_911 election the election must be made on form_2555 or on a comparable form and must be filed with the income_tax return or with an amended_return with respect to the timing of the election sec_1 a i provides that a valid sec_911 election must be made a with an income_tax return that is timely filed including any extensions of time to file b with a later return filed within the period prescribed in sec_6511 amending a timely filed income_tax return c with an original return filed within one year after the due_date of the return determined without regard to any extension of time to file or d with an income_tax return filed after the period described in paragraphs a i a b or c of this section provided - the taxpayer owes no federal_income_tax after taking into account the exclusion and files form_1040 with form_2555 or a comparable form attached either before or after the internal_revenue_service discovers that the taxpayer failed to elect the exclusion or the taxpayer owes federal_income_tax after taking into account the exclusion and files form_1040 with form_2555 or a comparable form attached before the internal_revenue_service discovers that the taxpayer failed to elect the exclusion sec_301_9100-1 provides that the commissioner has discretion to grant a taxpayer a reasonable extension of time under the rules set forth in sec_301_9100-3 to make a regulatory election under all subtitles of the code except subtitles e g h and i plr-125289-14 sec_301_9100-1 provides that an election includes an application_for relief in respect of tax and defines a regulatory election as an election whose due_date is prescribed by a regulation a revenue_ruling revenue_procedure notice or announcement sec_301_9100-3 provides that requests for relief 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 sec_301_9100-3 provides that except as provided in paragraph b i through iii a taxpayer is deemed to have acted reasonably and in good_faith if the taxpayer i ii iii iv v requests relief under this section before the failure to make the regulatory election is discovered by the internal_revenue_service failed to make the election because of intervening events beyond the taxpayer's control failed to make the election because after exercising reasonable diligence taking into account the taxpayer's experience and the complexity of the return or issue the taxpayer was unaware of the necessity for the election reasonably relied on the written advice of the irs or 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 in this case sec_1_911-7 fixes the time to make the election under sec_911 therefore the commissioner has discretionary authority under sec_301_9100-1 to grant taxpayer an extension of time provided that taxpayers satisfy the standards set forth under sec_301_9100-3 based solely on the information and representations set forth above we conclude that taxpayers satisfy sec_301_9100-3 accordingly taxpayers are granted an extension of time until days from the date of this ruling letter to elect the foreign_earned_income_exclusion for year and subsequent tax years taxpayers should attach a copy of this letter_ruling to their federal_income_tax return for the relevant year plr-125289-14 this ruling is directed only to taxpayers who requested it sec_6110 provides that it may not be used or cited as precedent pursuant to a power_of_attorney on file in this office a copy of this ruling letter is being furnished to your authorized representative sincerely jeffery g mitchell branch chief branch international


department of the treasury internal_revenue_service washington d c tax_exempt_and_government_entities_division contact person identification_number contact number employer_identification_number form required to be filed tax years number release date date date uil dear this is our final_determination that you do not qualify for exemption from federal_income_tax as an organization described in sec_501 c recently we sent you a letter in response to your application that proposed an adverse determination the letter explained the facts law and rationale and gave you days to file a protest we acknowledge your letter dated march withdrawing your protest in accordance with rev_proc i r b section accordingly pursuant to revproc_2014_09 i r b section the proposed adverse determination is now final because you do not qualify for exemption as an organization described in code sec_501 c donors may not deduct contributions to you under code sec_170 you must file federal_income_tax returns on the form and for the years listed above within days of this letter unless you request an extension of time to file file the returns in accordance with their instructions and do not send them to this office failure_to_file the returns timely may result in a penalty we will make this letter and our proposed adverse determination_letter available for public inspection under code sec_6110 after deleting certain identifying information please read the enclosed notice notice of intention to disclose and review the two attached letters that show our proposed deletions if you disagree with our proposed deletions follow the instructions in notice if you agree with our deletions you do not need to take any further action if you have any questions about this letter please contact the person whose name and telephone number are shown in the heading of this letter if you have any questions about your federal_income_tax status and responsibilities please contact irs customer service pincite-829-1040 or the irs customer service number for businesses the irs customer service number for people with hearing impairments is sincerely tamera ripperda director exempt_organizations enclosure notice redacted proposed adverse determination_letter redacted final adverse determination_letter department of the treasury internal_revenue_service washington d c contact person identification_number contact number fax number employer_identification_number tax_exempt_and_government_entities_division date date list uniform issue legend state founder founder affiliates com anl continent amount com anl organization amount amount dear we have considered your application and supporting documents for recognition of exemption from federal_income_tax under internal_revenue_code i r c sec_501 based on the information provided we have concluded that you do not qualify for exemption under sec_501 c the basis for our conclusion is set forth below you were formed as a charitable corporation under the laws of state your articles of incorporation state that you are organized exclusively for charitable and educational_purposes within the meaning of sec_501 c specifically you are organized to alleviate poverty in the developing world by empowering communities to improve the lives of their members through the implementation of programs which yield economic social and environmental change you were formed by founder and founder to raise funds in order to invest in affiliates and companl a for-profit manufacturer and seller of fuel-efficient stoves in continent that was also founded by founder and founder you stated that you formed to finance the operations and for-profit activities of companl and affiliates while also receiving a charitable deduction by donating to you as opposed to directly investing in company additionally you stated that you sought exemption to receive a possible grant of amount from founder company will pay for all of your operating costs for the foreseeable future your primary activity is making investments in company and company 's wholly-owned for profit affiliates to facilitate the purchase of fuel-efficient stoves for resale in continent company manufactures and sells fuel-efficient stoves at cost or slightly below cost to affiliates in continent the for-profit affiliates then sell the stoves and other similar goods at below cost to local charter organizations which are franchisees of company the charter organizations then sell the stoves at cost plus to end users who are individuals living in continent or to wholesale customers such as cooperative organizations associations and retailers who then sell or donate the stoves to the end users you state that you will not provide stoves to end users because you believe that people value things more if they pay for things themselves in addition you engage for-profit entity company to train individuals to sell company 's products in continent further you will make contributions to a nonprofit organization organization to develop training materials for the individuals you will pay organization for recruiting and training women as a door to door sales force to sell company 's products while organization will provide a detailed training on sales and financial management to empower women to start a business selling company products initially the stoves participants are not obligated to sell the stoves you will not develop training materials yourself or conduct trainings of individuals yourself founder and founder are members of both your board_of directors and the governing body of company founder and founder are also the managing members of company and its affiliates as well as co-founders and officers of company founder has an amount ownership_interest in company and an ownership_interest in one of company 's affiliates founder has an amount interest in company sec_501 a exempts from federal income_taxation organizations described in sec_501 c sec_501 c describes organizations that are organized and operated exclusively for religious charitable educational_purposes and other exempt purposes no part of the net_earnings of which inures to the benefit of any private_shareholder_or_individual sec_1 c -1 a states that in order to qualify under sec_501 c of the code an organization must be both organized and operated exclusively for one or more exempt purposes if an organization fails to meet either the organizational or operational_test it is not exempt sec_1 c -1 c states 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 sec_501 c an organization will not be so regarded if more than an insubstantial part of its activities is not in furtherance of an exempt_purpose sec_1 c -1 c provides that an organization is not operated exclusively for one or more exempt purposes if its net_earnings inure in whole or in part to the benefit of private shareholders or individuals sec_1 c -1 d ii states that an organization is not operated exclusively for one or more exempt purposes unless it serves a public rather than a private interest it must not be operated for the benefit of designated individuals or the persons who created it thus to meet the requirement of this subdivision it is necessary for an organization to establish that it is not organized or operated for the benefit of private interests such as designated individuals the creator or his family shareholders of the organization or persons controlled directly or indirectly by such private interests sec_1 c -1 d defines the term charitable as including the promotion of social welfare by organizations designed to relieve the poor and distressed or the underprivileged to lessen neighborhood tensions to eliminate prejudice and discrimination or to combat community deterioration sec_1 c -1 d provides that the term educational relates to the instruction or training of the individual for the purpose of improving or developing his capabilities or the instruction of the public on subject useful to the individual and beneficial to the community the regulation also provides four examples of educational organizations sec_1 c -1 e provides that an organization may meet the requirements of sec_501 c even though it operates a trade_or_business as a substantial part of its activities unless its primary purpose is carrying on of a trade_or_business that does not further charitable purposes revrul_67_149 1967_1_cb_133 concerns an organization formed for the purpose of providing financial assistance to several different types of organizations which are exempt under sec_501 c it carries on no operations other than to receive contributions and incidental investment_income and to make distributions of income to such exempt_organizations at periodic intervals the ruling holds that the organization is exempt under sec_501 c revrul_68_489 1968_2_cb_210 holds that an organization will not jeopardize its exemption under sec_501 c of the code even tl lough it distributes funds to nonexempt organizations provided it retains control and discretion over use of the funds for sec_501 c purposes in this ruling an organization exempt from federal_income_tax under sec_501 c distributed part of its funds to organizations not themselves exempt under sec_501 c the exempt_organization ensures use of the funds for sec_501 c purposes by limiting distributions to specific projects that are in furtherance of its own exempt purposes it retains control and discretion as to the use of the funds and maintains records establishing that the funds were used for sec_501 c purposes in 326_us_279 the supreme court held that the presence of a single non-exempt purpose if substantial in nature will destroy the exemption regardless of the number or importance of truly exempt purposes the court found that a trade_association had an underlying commercial motive that distinguished its educational program from that carried out by a university and therefore the association did not qualify for exemption in 92_tc_1053 the organization operated for the benefit of private interests a nonexempt purpose because more than an insubstantial part of the organization's activities furthered this nonexempt purpose the organization failed to establish that it operated exclusively for exempt purposes within the meaning of sec_501 c when an organization operates for the benefit of private interests such as designated individuals the creator or his family or persons directly or indirectly controlled by such private interests the organization by definition does not operate exclusively for exempt purposes rationale based on the facts presented in your application and supporting documents we conclude that you are not operated for exempt purposes accordingly you do not qualify for exemption as an organization described in sec_501 c of the code your application and supporting documentation must demonstrate that your organization meets the operational_test under sec_1 c -1 a of the regulations exempt_organizations must operate exclusively for exempt purposes lr c sec_501 c the term exclusively has been interpreted to mean primarily sec_1_501_c_3_-1 a single substantial non exempt_purpose is sufficient to prevent exemption better business bureau v u s u s pincite if an organization fails the operational_test it cannot qualify as an exempt_organization under sec_501 c of the code you were established to fund the operations of a for-profit company engaged in the manufacture and sale of fuel efficient stoves and other products to its affiliates who sell to persons in continent at or below cost further part of your net_earnings inures to the benefit of private individuals and your operations serve private interests these are substantial non-exempt purposes and as such you do not qualify for exemption your activity of investing in a for-profit company that sells products to its for-profit affiliates is not charitable within the meaning of the code and regulations sec_1 c -1 d you have not shown how facilitating the sale of products to persons in continent alleviates poverty or serves any other charitable purpose within the meaning of sec_501 c in fact you specifically say that you reject the common understanding of charity because people do not appreciate things given to them and rather seek to establish a workforce to sell company and affiliates' goods further you do not turn over substantially_all of your income to organizations described in sec_501 c like the organization described in rev_rul you also do not provide funds to non-exempt organizations in a manner similar to revrul_68_489 whereby the organization disbursed some of its income to non-exempt entities but restricted the use to purposes described in sec_501 c your activity of funding training for individuals to learn to sell company 's products is not charitable or educational within the meaning of the code and regulations sec_1 c -1 d and sec_1 c -1 d you will fund training for individuals to become entrepreneurs and sell primarily company 's products in continent the programs carried on by organization and company serve the substantial non-exempt purpose of promoting company 's goods to increase output in continent these activities do not serve primarily educational_purposes within the meaning of sec_1_501_c_3_-1 even if these activities qualified as exempt activity they are insubstantial when compared to your substantial nonexempt activity of investing in for-profit companies since your investment activity represent more than an insubstantial amount of your overall activities and this activity is neither charitable nor educational you do not operate exclusively for exempt purposes see better business bureau u s pincite the primary purpose for your formation was to secure grants to invest in company which is a for-profit company started by founder and founder your investments in company will increase the overall grants going to company which would substantially benefit company and thereby company 's members officers and directors including founder and founder additionally as founder and founder are minority owners of company and affiliates any private benefit received by company will in turn inure to the benefit of founder and founder g since founder and founder are your founders and serve as your officers and directors this benefit constitutes inurement that is strictly prohibited under sec_501 c as you operate for the benefit of private interests you by definition do not operate exclusively for exempt purposes see american campaign academy v commissioner pincite6 because you provide a substantial private benefit to private individuals and for-profit companies that is not incidental to furthering any exempt_purpose you have a substantial nonexempt purpose which destroys the exemption regardless of the number or importance of truly exempt purposes see better business bureau v u s u s pincite conclusion based on the information provided we are not able to conclude that you are operated exclusively for exempt purposes despite any charitable purposes your activities may achieve you cannot qualify for tax exemption because more than an insubstantial part of your activities are not in furtherance of exempt purposes you have the right to file a protest if you believe this determination is incorrect to protest you must submit a statement of your views and fully explain your reasoning you must submit the statement signed by one of your officers within days from the date of this letter we will consider your statement and decide if the information affects our determination you also have a right to request a conference to discuss your protest this request should be made when you file your protest statement an attorney certified_public_accountant or an individual enrolled to practice before the internal_revenue_service irs may represent you if you want representation during the conference procedures you must file a proper power_of_attorney form_2848 power ofattorney and declaration of representative if you have not already done so for more information about representation see publication practice_before_the_irs and power_of_attorney all forms and publications mentioned in this letter can be found at www irs gov forms and publications if you do not file a protest within days you will not be able to file a suit for declaratory_judgment in court because the irs will consider the failure to protest as a failure to exhaust available administrative remedies sec_7428 provides in part that a declaratory_judgment or decree shall not be issued in any proceeding unless the tax_court the united_states court of federal claims or the district_court of the united_states for the district of columbia determines that the organization involved has exhausted all of the administrative remedies available to it within the irs if you do not intend to protest this determination you do not need to take any further action if we do not hear from you within days we will issue a final adverse determination_letter that letter will provide information about filing tax returns and other matters please send your protest statement form_2848 and any supporting documents to this address internal_revenue_service tege constitution ave n w washington d c you may also fax your statement using the fax number shown in the heading of this letter if you fax your statement please call the person identified in the heading of this letter to confirm that he or she received your fax if you have any questions please contact the person whose name and telephone number are shown in the heading of this letter sincerely kenneth c corbin acting director exempt_organizations


number release date id office uilc cca_2009010515522337 -------------- from ------------------- sent monday january pm to -------------------- cc ----------------------------- subject re tefra determination if the llc partner has elected to be taxed as a c_corporation and no tefra election was made the partnership falls under the small_partnership_exception to tefra under sec_6231 since both partners are c corporations an llc partner will automatically default into a disregarded_entity de however unless it files an election to be taxed as a c_corporation using form_8832 status of the llc partner will cause the partnership to automatically be subject_to the tefra partnership provisions since it will have a pass-thru_entity the llc de as a partner see revrul_2004_32 if no form_8832 has been filed then the de


department of the treasury internal_revenue_service washington d c tax_exempt_and_government_entities_division dec significant index number tt e_p na t2 rekkekkekekreeeerkekekerere hrekkekckekrikeeeeekrererrerrekreeeeeeee rekkekeekekererkerekreek kkk ekerekereikkeererreererkek in re request for waiver of the minimum_funding_standard for the keekkkeekrerekrereekek krerkrererreeerererereee plan no el n rh _akkhereee company ae ke kkekkekrkekkekekekrekerereererekrerereee plan - hearkekeekemkekeekrerek eere ere ekeieeeeekererekrerereeeekrerere dear krkkkekkekekekekeke this letter constitutes notice that a waiver of the required minimum_funding contribution for the plan for the plan_year ending date has been approved subject_to the conditions listed below this letter supersedes the ruling letter dated date this waiver is for the remaining unpaid required minimum contribution for the above listed plan_year all waiver amortization payments representing this waiver still must be paid as stated in sec_412 of the code collateral acceptable to pbgc is provided to the plans for the full amount of the funding waiver for the plan_year by the later of a days from the date of the irs ruling letter granting the waiver final ruling letter and b the earlier of i the date pbgc notifies the service in writing that this condition has not been met and ii days from the date of the final ruling letter starting with the contribution due on date company makes the required quarterly contributions to the plan in a timely fashion while the plan is subject_to a waiver of the minimum_funding_standard for this purpose the total amount of each quarterly contribution will be determined in accordance with sec_430 and sec_430 of the code and can be comprised of several installments made prior to the respective due_date of the quarterly contribution company makes contributions to the plan in amounts sufficient to meet the minimum_funding requirements for the plan for the plan years ending date through by date through respectively under sec_412 of the code company is restricted from amending the plan to increase benefits or plan liabilities while any portion of the waived_funding_deficiency remains unamortized company provides proof of payment of all contributions described above in a timely manner to the service using the fax numbers or addresses below irs - ep classification krkekkekrererekekererk krkkkrkekekerererererere krekkkekrekkeekekereeek krekkkekekereekeraeerkekeke fax a krkkkkkkkeekkrekkerer pension_benefit_guaranty_corporation kekkkeke rekkekkkekekrrekekkkkk kekekkkerereekekerekekreer tdebetekickickk fax if any one of these conditions is not satisfied the waivers are retroactively null and void this conditional waiver has been granted in accordance with sec_412 of the internal_revenue_code and sec_303 of the employee_retirement_income_security_act_of_1974 erisa the company is a privately-held manufacturer of parts and components for sale primarily to the automotive industry it has suffered a temporary substantial business hardship due to a decline in sales it has also made significant investments in new product development which temporarily reduced company’s net_income and cash flows the company has demonstrated that it has executed a strategy to increase sales and reduce expenses to improve its financial health likely generate increasing profits in future years in addition the company believes and its financial projections illustrate that its revenues and cash flows will improve adequately to satisfy the plan’s funding obligation in the near future its financial projections show that it will your attention is called to sec_412 of the code and sec_302 of erisa which describe the consequences that would result in the event the plan is amended to increase benefits change the rate in the accrual_of_benefits or to change the rate of vesting while any portion of the waived_funding_deficiency remains unamortized please note that any amendment to a profit sharing plan or any other retirement plans covering employees covered by this plan maintained by the company to increase or any_action by the company or its authorized agents or designees such as a board_of directors or board_of trustees that has the effect of increasing the liabilities of those plans would be considered an amendment for purposes of sec_412 of the code and sec_302 of erisa similarly the establishment of a new profit sharing plan or any other retirement_plan by the company covering employees covered by this plan would be considered an amendment for purposes of sec_412 of the code and sec_302 of erisa this ruling is directed only to the taxpayer that requested it sec_6110 of the code provides that it may not be used or cited by others as precedent when filing form_5500 for the plan_year ending date the date of this letter should be entered on schedule sb actuarial information for this reason we suggest that you furnish a copy of this letter to the enrolled_actuary who is responsible for the completion of the schedule sb we have sent a copy of this letter to the manager ep classification in baltimore maryland and to the manager ep compliance unit in chicago illinois if you require further assistance in this matter please contact at - reeke sincerely woes bo vt william hulteng manager employee_plans technical cc kkeekeekekreerkereereeererke manager ep classification baltimore maryland manager ep compliance unit chicago illinois department of the treasury internal_revenue_service washington d c tax_exempt_and_government_entities_division dec significant index number rekkekrkekrkeerkeeekekrkkeekek krkeekrerekrkreerkerkeekekkerrekke kkk hekekekekekekeekekekekekekkkek khkkekrekkeekekrekekerkeeekkekake ' a tep za tx in re request for waiver of the minimum_funding_standard for the rhekekrerekkeeeereeekrk kukekerkeeekerkeekererik plan no e n rrr _akkkkkekek company ae kekrkkkekkekkekkeeekreeeereekreekekerereraeere plan rrr arhkkhkekrekikekrerkkie eere kerr eeeeeeeee ere rreerererereereereree dear kekkereerekeerere this letter constitutes notice that a waiver of the required minimum_funding contribution for the plan for the plan_year ending date has been approved subject_to the conditions listed below this letter supersedes the ruling letter dated date this waiver is for the remaining unpaid required minimum contribution for the above listed plan_year all waiver amortization payments representing this waiver still must be paid as stated in sec_412 of the code _ collateral acceptable to pbgc is provided to the plans for the full amount of the funding waiver for the plan_year by the later of a days from the date of the irs ruling letter granting the waiver final ruling letter and b the earlier of i the date pbgc notifies the service in writing that this condition has not been met and ii days from the date of the final ruling letter starting with the contribution due on date company makes the required quarterly contributions to the plan in a timely fashion while the plan is subject_to a waiver of the minimum_funding_standard for this purpose the total amount of each quarterly contribution will be determined in accordance with sec_430 and sec_430 of the code and can be comprised of several installments made prior to the respective due_date of the quarterly contribution company makes contributions to the pian in amounts sufficient to meet the minimum_funding requirements for the plan for the plan years ending date through by date through respectively under sec_412 of the code company is restricted from amending the plan to increase benefits or plan liabilities while any portion of the waived d funding deficiency remains unamortized company provides proof of payment of all contributions described above ina timely manner to the service using the fax numbers or addresses below irs - ep classification kkkkekkekekrerekeeeker rekkkekeereeeekererkreee kkkkekkekekrerekekkeeker kekekkeekeererrekekereeeer fax a brekkekrekkekrkkeekeke pension_benefit_guaranty_corporation krekkekkk krrkkeerrekkekekrerkrk rake krekrekeeekerekeeeeeeeeekeke fax rkkkkkkkeerkkekee if any one of these conditions is not satisfied the waiver is retroactively null and void this conditional waiver has been granted in accordance with sec_412 of the internal_revenue_code and sec_303 of the employee_retirement_income_security_act_of_1974 erisa the company is a privately-held manufacturer of parts and components for sale primarily to the automotive industry it has suffered a temporary substantial business hardship due to a decline in sales it has also made significant investments in new product development which temporarily reduced company’s net_income and cash flows the company has demonstrated that it has executed a strategy to increase sales and reduce expenses to improve its financial health its financial projections show that it will likely generate increasing profits in future years in addition the company believes and its financial projections illustrate that its revenues and cash flows will improve adequately to satisfy the plan’s funding obligation in the near future your attention is called to sec_412 of the code and sec_302 of erisa which describe the consequences that would result in the event the plan is amended to increase benefits change the rate in the accrual_of_benefits or to change the rate of vesting while any portion of the waived_funding_deficiency remains unamortized please note that any amendment to a profit sharing plan or any other retirement plans covering employees covered by this plan maintained by the company to increase or any_action by the company or its authorized agents or designees such as a board_of directors or board_of trustees that has the effect of increasing the liabilities of those plans would be considered an amendment for purposes of sec_412 of the code and sec_302 of erisa similarly the establishment of a new profit sharing plan or any other retirement_plan by the company covering employees covered by this plan would be considered an amendment for purposes of sec_412 of the code and sec_302 of erisa this ruling is directed only to the taxpayer that requested it sec_6110 of the code provides that it may not be used or cited by others as precedent when filing form_5500 for the plan_year ending date the date of this letter should be entered on schedule sb actuarial information for this reason we suggest that you furnish a copy of this letter to the enrolled_actuary who is responsible for the completion of the schedule sb we have sent a copy of this letter to the manager ep classification in baltimore maryland and to the manager ep compliance unit in chicago illinois if you require further assistance in this matter please contact at - krkekk pv w vp william hulteng manager employee_plans technical cc sincerely hkikkkkeekrererereerereker manager ep classification baltimore maryland manager ep compliance unit chicago illinois


internal_revenue_service number release date index number -------------------------------------- --------------- ------------------------ in re ------------------------ ---------------------------- department of the treasury washington dc third party communication date of communication month dd yyyy person to contact ------------------ id no ------------ telephone number -------------------- refer reply to cc psi b04 plr-104661-05 date date re -------------------------------------- legend taxpayers trust date year x y cpa state - - - - - - - - -------------------------------------- ------------------------------------------------- ------------------------- ------------------ ------- --------------------------------------------------------------------------- ------------------------------------------------------------------------------ -------------------------------------------- -------- dear -------------------------- this is in response to a letter dated date and prior correspondence submitted by your authorized representative requesting an extension of time under sec_301 of the procedure and administration regulations to make an allocation of generation-skipping_transfer gst_exemption taxpayers husband and wife reside in state on date husband established an irrevocable_trust trust for the primary benefit of wife and their children and descendants on date husband contributed_property x to trust and wife contributed_property y cpa prepared and husband and wife filed separate form sec_709 united_states gift and generation-skipping_transfer_tax return for the transfers and elected to split_gifts under sec_2513 however in the preparation of the form sec_709 cpa inadvertently failed to allocate any of husband’s or wife’s gst_exemption to trust on their respective form sec_709 the errors were discovered in a recent review of husband and wife’s estate_planning husband and wife each request i an extension of time to make allocations of their respective gst_exemption to transfers in year and ii that such allocation be based on the value of the property transferred to trust on the date of the transfer so that the inclusion_ratio of trust is zero sec_2601 imposes a tax on every generation-skipping_transfer a generation- skipping transfer is defined under ' a as a taxable_distribution a taxable_termination and a direct_skip sec_2631 as in effect for the tax years at issue provided that for purposes of determining the gst tax every individual shall be allowed a gst_exemption of dollar_figure adjusted for inflation under ' c 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 ' a once made shall be irrevocable sec_2652 and sec_26_2652-1 of the generation-skipping_transfer_tax regulations provide that if under sec_2513 one-half of a gift is treated as made by an individual and one-half is treated as made by the spouse of the individual then for purposes of the gst tax each spouse is treated as the transferor of one-half of the entire value of the property transferred by the donor spouse regardless of the interest the electing spouse is actually deemed to have transferred under sec_2513 sec_2632 provides that any allocation by an individual of his or her gst_exemption under ' a 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 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 ' f if the allocation of the gst_exemption to any transfers of property is made on a gift_tax_return filed on or before the date prescribed by ' b for such transfer the value of such property for purposes of ' a shall be its value as finally determined for purposes of chapter within the meaning of ' f sec_2642 provides 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 ' b or sec_2642 provides that in determining whether to grant relief under this paragraph 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 see notice_2001_50 2001_2_cb_189 sec_301_9100-1 provides that the commissioner has discretion to 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 internal_revenue_code except subtitles e g h and i sec_301_9100-3 provides the standards used to determine whether to grant an extension of time to make an election whose date is prescribed by a regulation and not expressly provided by statute 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 ' g b and notice_2001_50 taxpayers may seek an extension of time to make an allocation described in ' b under the provisions of ' requests for relief under ' 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 ' have been satisfied under sec_26_2652-1 wife is treated for gst purposes as the transferor of one-half of the entire value of the property transferred by husband regardless of the interest wife is actually deemed to have transferred under sec_2513 for gst purposes husband and wife are each treated as the transferor of one-half of the value of the entire property transferred to trust therefore husband is granted an extension of time of days from the date of this letter to make an allocation of husband’s available gst_exemption with respect to husband s transfer to trust in year in addition wife is granted an extension of time of days from the date of this letter to make an allocation of wife’s available gst_exemption with respect to wife’s transfer to trust in year the allocations will be effective as of the respective date of the transfers and the value of the transferred assets to trust as of the respective date of the original transfers to trust will be used in determining the amount of husband’s and wife’s gst_exemption to be allocated to trusts trust’s inclusion_ratio will be determined under sec_2642 and sec_2642 husband and wife should make these allocations on supplemental form sec_709 for year the forms should be filed with the cincinnati service_center at the following address internal_revenue_service cincinnati service_center - stop cincinnati oh a copy of this letter should be attached to the forms 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 tax consequences of the transaction under the cited provisions or under any other provisions of the code except as specifically ruled herein we express or imply no opinion on the federal this ruling is directed only to the taxpayer 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 internal_revenue_service te_ge eo examination commerce dallas texas date tax_exempt_and_government_entities_division number release date legend org organization name xx date address address uil org address person to contact identification_number contact telephone number in reply refer to te_ge review staff ein last date for filing a petition with the tax_court certified mail- return receipt requested dear this is a final adverse determination as to your exempt status under sec_501 of the internal_revenue_code recognition of your exemption from federal_income_tax as an organization described in internal_revenue_code sec_501 is retroactively revoked to january 20xx because you have not established that you are operated exclusively for exempt purposes sec_501 exempts from taxation organization which are organized and operated exclusively for religious charitable or educational_purposes no part of the net earning of which inure to the benefit of any private_shareholder_or_individual no substantial part of the activities of which is carrying on propaganda or otherwise attempting to influence legislation and which do not participate in or intervene in any political campaign on behalf of or in opposition to any candidate for public_office ‘ sec_1_6001-1 of the regulations in conjunction with sec_1_6001-1 provides that every organization exempt from tax under sec_501 of the code must keep such permanent books_or_records to allow the service to establish whether the taxpayer is liable for any_tax liability in addition to the general recordkeeping rules organizations_exempt_from_taxation under sec_501 must also maintain the records required by sec_6033 of the code your exempt status is being revoked because you have failed to demonstrate that you are operating exclusively for a recognized exempt_purpose under sec_501 your exempt status is also being revoked because you have failed to meet the requirements of sec_6033 and the regulations thereunder requiring all c organizations to furnish such additional information as may be required by the internal_revenue_service for ht purpose of inquiring into your tax exempt status we are revoking your exemption from federal_income_tax as an organization described in sec_501 of the internal_revenue_code effective january 20xx 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 these returns should be filed with the appropriate service_center for the year ending december 20xx and for 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 and ask for taxpayer_advocate assistance or you can contact the taxpayer_advocate from the site where the tax_deficiency was determined by calling or writing to internal_revenue_service taxpayer advocates office 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 have to file a petition in the united_states tax_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 we will notify the appropriate state officials of this action as required by sec_6104 of the internal_revenue_code if you have any questions please contact the person whose name and telephone number are shown in the heading of this letter marsha a ramirez director eo examinations sincerely yours tax_exempt_and_government_entities_division org address department of the treasury internal_revenue_service west creek road se t eo ma independence oh 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 form 886-a rev date explanation of items schedule number or exhibit name of taxpayer org legend org organization name year period ended december 20xx tax identification_number date xx issue whether org qualifies for exemption under sec_501 of the internal_revenue_code facts exhibit a provides copies of the internal_revenue_service correspondence requesting that org provide access to its financial books_and_records for the tax period ended december 20xx org failed to respond to the internal_revenue_service correspondence law sec_6001 of the code provides that every person liable for any_tax imposed by the code or for the collection thereof shall keep adequate_records as the secretary_of_the_treasury or_his_delegate may from time to time prescribe sec_6033 of the code provides except as provided in sec_6033 every organization exempt from tax under sec_501 shall file an annual return stating specifically the items of gross_income receipts and disbursements and such other information for the purposes of carrying out the internal revenue laws as the secretary may by forms or regulations prescribe and 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 sec_1_6001-1 of the regulations in conjunction with sec_1_6001-1 provides that every organization exempt from tax under sec_501 of the code and subject_to the tax imposed by sec_511 on its unrelated_business_income must keep such permanent books or accounts or records including inventories as are sufficient to establish the amount of gross_income deduction credits or other matters required to be shown by such person in any return of such tax such organization shall also keep such books_and_records as are required to substantiate the information required by sec_6033 sec_1_6001-1 of the regulations states that the books_or_records required by this section shall be kept at all times available for inspection by authorized internal revenue officers or employees and shall be retained as long as the contents thereof may be material in the administration of any internal revenue law page of form 886-a department of treasury-internal revenue service explanation of items form 886-a rev date name of taxpayer org legend org organization name year period ended december 20xx schedule number or exhibit tax identification_number xx date sec_1_6033-2 of the regulations provides that every organization which is exempt from tax whether or not it is required to file an annual information_return shall submit such additional information as may be required by the internal_revenue_service for the purpose of inquiring into its exempt status and administering the provisions of subchapter_f sec_501 and following chapter of subtitle a of the code sec_6033 and chapter of subtitle d of the code revrul_59_95 1959_1_cb_627 concerns an exempt_organization that was requested to produce a financial statement and statement of its operations for a certain year however its records were so incomplete that the organization was unable to furnish such statements the service held that the failure or inability to file the required information_return or otherwise to comply with the provisions of sec_6033 of the code and the regulations which implement it may result in the termination of the exempt status of an organization previously held exempt on the grounds that the organization has not established that it is observing the conditions required for the continuation of exempt status in accordance with the above cited provisions of the code and regulations under sec_6001 and sec_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 and to determine its liability for any unrelated_business_income_tax taxpayer’s position taxpayer's position has not been provided government’s position org has failed to provide information to support the activities and operations of the organization for the year ended december 20xx org failed to establish it is observing the conditions required for continuation of exempt status the organization was advised of the consequences of failing to provide information on several occasions as well as given an adequate opportunity to provide the requested information as a result of the failure to provide information necessary to verify and substantiate compliance as an sec_501 recognized organization we have determined that org no longer qualifies as an exempt public charity described in sec_501 form 886-a page of department of treasury-internal revenue service explanation of items schedule number or exhibit year period ended december 20xx tax identification_number form 886-a rev date name of taxpayer org legend org organization name xx date we propose a revocation of your exempt status under sec_501 of the internal_revenue_code effective january 20xx conclusion it is the irs's position that the org failed to meet the reporting requirements under sec_6001 and sec_6033 to be recognized as exempt from federal_income_tax under sec_501 of the internal_revenue_code accordingly the organization's exempt status is revoked effective january 20xx a closing conference was offered however not held since the organization has not made contact with the service for all tax periods after january 20xx should the revocation be upheld org is required to file form_1120 department of treasury-internal revenue service form 886-a page of