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Caution: DRAFT—NOT FOR FILING
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collection through the Federal Register process; for more info, click here.Publication 557
(Rev. January 2022) Contents
Cat. No. 46573C What's New .................. 2
Department
Tax-Exempt
of the Reminders . . . . . . . . . . . . . . . . . . . 2
Treasury
Introduction . . . . . . . . . . . . . . . . . . 3
DRAFT AS OF
Internal
Revenue
Service Status for Your Chapter 1. Application, Approval,
and Appeal Procedures . . . . .... 4
Organization Application Procedures . . . . .
Forms Required . . . . . .
Required Information and
.... 4
.... 4
February 8, 2022
Documents . . . . . . . . . . . 5
Miscellaneous Procedures . . . . 6
Determination Letters . . . . . . . . . . 6
Effective Date of Exemption . . . . 6
Revocation of Exemption . . . . . 7
Appeal Procedures . . . . . . . . . . . . 7
Independent Office of
Appeals Consideration . . . . 7
Administrative Remedies . . . . . 8
Appeal to Courts . . . . . . . . . . 8
Group Exemption Letter . . . . . . . . . 8
Central Organization
Application Procedure . .... 8
Keeping the Group
Exemption Letter in
Force . . . . . . . . . . .... 9
Events Causing Loss of
Group Exemption . . . . . . . 10
Chapter 2. Filing Requirements
and Required Disclosures . . . . . 10
Annual Information Returns . . . . . . 11
Unrelated Business Income Tax
Return . . . . . . . . . . . . . . . . 13
Employment Tax Returns . . . . . . . 13
Political Organization Income
Tax Return . . . . . . . . . . . . . 14
Reporting Requirements for a
Political Organization . . . . . . . 14
Donee Information Return . . . . . . . 16
Information Provided to Donors . . . . 16
Report of Cash Received . . . . . . . 18
Public Inspection of Exemption
Applications, Annual
Returns, and Political
Organization Reporting
Forms . . . . . . . . . . . . . . . . 18
Required Disclosures . . . . . . . . . 20
Solicitation of
Nondeductible
Contributions . . . . . . . . . 20
Sales of Information or
Services Available Free
from Government . . . . . . . 21
Dues Used for Lobbying or
Political Activities . . . . . . . 21
Miscellaneous Rules . . . . . . . . . . 21
Organizational Changes
and Exempt Status . . . . . . 21
Modify or Obtain an NTEE
Code. . . . . . . . . . . . . . 22
Chapter 3. Section 501(c)(3)
Organizations . . . . . . . . . . . . . 22
Get forms and other information faster and easier at: Contributions to 501(c)(3)
• IRS.gov (English) • IRS.gov/Korean (한국어) Organizations . . . . . . . . . . . . 22
• IRS.gov/Spanish (Español) • IRS.gov/Russian (Pусский) Application for Recognition of
• IRS.gov/Chinese (中文) • IRS.gov/Vietnamese (Tiếng Việt) Exemption . . . . . . . . . . . . . . 23
Articles of Organization . . . . . . . . 25
Feb 08, 2022Educational Organizations and Excise Tax on Executive not on paper. Organizations other than pri-
Private Schools . . . . . . . . . . . 26 Compensation . . . . . . . . . . . 66 vate foundations that are required to file
Organizations Providing Excise Tax on Net Investment Form 4720 are encouraged, but not re-
Insurance . . . . . . . . . . . . . . 28 Income of Certain Colleges quired, to file Form 4720 electronically.
Other Section 501(c)(3) and Universities . . . . . . . . . . 66 • Forms 990, 990-EZ, & 990-PF e-filing.
Organizations . . . . . . . . . . . . 28 Form 990, Return of Organization Exempt
Private Foundations and Public Chapter 6. How to Get Tax Help . . . . 66 From Income Tax, and Form 990-PF, Re-
Charities . . . . . . . . . . . . . . . 30 turn of Private Foundation or Section
Organization Reference Chart . . . . . . 69
DRAFT AS OF
Lobbying Expenditures . . . . . . . . 46 4947(a)(1) Trust Treated as Private Foun-
dation, for tax years ending July 31, 2020,
Chapter 4. Other Section 501(c) Appendix. Sample Articles of and later MUST be filed electronically.
Organizations . . . . . . . . . . . . . 48 Organization . . . . . . . . . . . . . . 70 Form 990-EZ, Short Form Return of Or-
501(c)(4) - Civic Leagues and ganizations Exempt from Income Tax, for
Social Welfare Organizations . . . 48 Appendix. Sample Articles of tax years ending July 31, 2021, and later
501(c)(5) - Labor, Agricultural Organization, continued . . . . . . 72 MUST be filed electronically. The transi-
February 8, 2022
and Horticultural tional relief applicable to the Form 990-EZ
Organizations . . . . . . . . . . . . 49 Index . . . . . . . . . . . . . . . . . . . . . 75 under which the IRS accepted either paper
501(c)(6) - Business Leagues, or electronic filing of Form 990-EZ applied
etc. . . . . . . . . . . . . . . . . . . 49 only for tax years ending before July 31,
501(c)(7) - Social and
Recreation Clubs . . . . . . . . . . 50 What's New 2021.
More information on software providers
501(c)(8) and 501(c)(10) - Future developments. The IRS has created a is available on the Exempt Organizations
Fraternal Beneficiary page on IRS.gov for information about Publica- Modernized e-File (MeF) Providers page.
Societies and Domestic For more information, go to IRS:
tion 557, at IRS.gov/pub557. Information about
Fraternal Societies . . . . . . . . . 51 Recent legislation requires tax exempt
any future developments affecting Publication
501(c)(4), 501(c)(9), and 501(c) organizations to e-file forms.
557 (such as legislation enacted after we re-
(17) - Employees'
lease it) will be posted on that page. Section 501(c)(21) trusts. Form 990-BL, In-
Associations . . . . . . . . . . . . 52
501(c)(12) - Local Benevolent Electronic Form 1024. As of January 3, 2022, formation and Initial Excise Tax Return for
Life Insurance Associations, Form 1024, Application for Recognition of Ex- Black Lung Benefit Trusts and Certain Related
Mutual Irrigation and emption Under Section 501(a) or Section 521, Persons, will be a historical form beginning with
Telephone Companies, and is available for electronic filing on Pay.gov. As tax year 2021. Section 501(c)(21) trusts can no
Like Organizations . . . . . . . . . 54 part of the revision, applications for recognition longer file Form 990-BL and will file Form 990
501(c)(13) - Cemetery of exemption under Sections 501(c)(11), (14), (or submit Form 990-N, if eligible) to meet their
Companies . . . . . . . . . . . . . 55 (16), (18), (21), (22), (23), (26), (27), (28), (29,) annual filing obligations under section 6033.
501(c)(14) - Credit Unions and and 501(d) can no longer be submitted as letter Some section 501(c)(21) trusts may also be re-
Other Mutual Financial applications. Instead, these requests must be quired to file Form 6069, Return of Certain Ex-
Organizations . . . . . . . . . . . . 56 made on the electronic Form 1024. The IRS will cise Taxes on Mine Operators, Black Lung
501(c)(19) - Veterans' provide a 90-day grace period during which it Trusts, and Other Persons Under Sections
Organizations . . . . . . . . . . . . 56 will continue to accept paper versions of Form 4951, 4952, and 4953.
501(c)(21) - Black Lung Benefit 1024 (Rev. 01-2018) and letter applications;
Trusts . . . . . . . . . . . . . . . . 57 however, after April 4 the Form 1024 must be
501(c)(2) - Title-Holding submitted electronically. See Rev. Proc.
Corporations for Single 2022-8. Reminders
Parent Corporations . . . . . . . . 58 Also, organizations requesting determina- Electronic Form 1024-A. Form 1024-A, Appli-
501(c)(25) - Title-Holding tions under Section 521 are now able to use the cation for Recognition of Exemption Under Sec-
Corporations or Trusts for electronic Form 1024 instead of Form 1028, Ap- tion 501(c)(4), must be submitted electronically
Multiple Parent Corporations . . . 58 plication for Recognition of Exemption Under on Pay.gov.
501(c)(26) - State-Sponsored Section 521.
High-Risk Health Coverage Reporting of donor information (Form 990,
Organizations . . . . . . . . . . . . 59 Update on mandatory e-filing. The Taxpayer 990-EZ, and 990-PF). Final regulations pro-
501(c)(27) - Qualified First Act, enacted July 1, 2019, requires tax-ex- vide that the requirement to report contributor
State-Sponsored Workers' empt organizations to electronically file informa- names and addresses on annual returns gener-
Compensation Organizations . . . 59 tion returns and related forms. The new law af- ally applies only to returns filed by Section
501(c)(29) - CO-OP Health fects tax-exempt organizations in tax years 501(c)(3) organizations and Section 527 politi-
Insurance Issuers . . . . . . . . . 59 beginning after July 1, 2019. cal organizations. All tax-exempt organizations
• Forms 990-T & 4720 are available for must continue to maintain the names and ad-
Chapter 5. Excise Taxes . . . . . . . . . 60 e-filing in 2022. In 2020, the IRS contin- dresses of their substantial contributors in their
Prohibited Tax Shelter ued to accept paper Form 990-T, Exempt books and records
Transactions . . . . . . . . . . . . 60 Organization Business Income Tax Return,
Excess Benefit Transactions . . . . . 60 and Form 4720, Return of Certain Excise IRS not accepting requests for group ex-
Taxes Under Chapters 41 and 42 of the In- emption numbers. The IRS will not accept
Excess Business Holdings . . . . . . 64
ternal Revenue Code, pending conversion any requests for group exemption letters start-
Taxable Distributions of
into electronic format. As described below, ing on June 17, 2020, until publication of the fi-
Sponsoring Organizations . . . . . 64
in 2021 the IRS announced e-filing is re- nal revenue procedure or other guidance in the
Taxes on Prohibited Benefits
Resulting from Donor quired for these forms as described below. Internal Revenue Bulletin. See Notice 2020-36.
Advised Fund Distributions . . . . 65 For Form 990-T, any 2020, and any fu- Automatic revocation. Regarding automatic
Excise Taxes on Private ture year Form 990-T with a due date on or revocation for the failure to file a return or notice
Foundations . . . . . . . . . . . . . 65 after April 15, 2021, must be filed electroni- for 3 consecutive years, as required by section
Excise Taxes on Black Lung cally and not on paper. 6033, the Taxpayer First Act of 2019, P.L.
Benefit Trusts . . . . . . . . . . . . 65 For Form 4720, any 2020, and any fu- 116-25, added a requirement that the IRS notify
Excise Tax on Failure to Meet ture year, Form 4720 filed by a private the organization after the organization has
the Community Health foundation with a due date on or after July failed to file for 2 consecutive years. See Auto-
Needs Assessment 15, 2021, must be filed electronically and matic Revocation, later, for more information,
Requirements . . . . . . . . . . . 66 including applicability dates.
Page 2 Publication 557 (January 2022)Electronic Form 1023. Form 1023, Applica- and Subsidiary Accounts to the central organi- Corporations organized under Acts of
tion for Recognition of Exemption under Section zations. See Group Exemption Letter, later. Congress . . . . . . . . . . . . . . . . . . . . . . . 501(c)(1)
501(c)(3) of the Internal Revenue Code, is Form 8976. Each new section 501(c)(4) or- Teachers' retirement fund associations . . . 501(c)(11)
available only as an electronic form filed on ganization must notify the IRS of its intent to op- Mutual insurance companies . . . . . . . . . . 501(c)(15)
Pay.gov. Form 1023-EZ, Streamlined Applica- erate as a section 501(c)(4) organization re-
Corporations organized to finance crop
tion, is already on Pay.gov. operations . . . . . . . . . . . . . . . . . . . . . . 501(c)(16)
gardless of whether it will seek recognition of its Employee funded pension trusts (created
Tax on investment income of private foun- exempt status under section 501(c)(4). Use before June 25, 1959) . . . . . . . . . . . . . . 501(c)(18)
dations. The Taxpayer Certainty and Disaster Form 8976, Notice of Intent to Operate Under Withdrawal liability payment fund . . . . . . . 501(c)(22)
DRAFT AS OF
Tax Relief Act of 2019, reduced the 2% excise Section 501(c)(4), to provide this notification. Veterans' organizations (created before
tax on investment income of private foundations Form 8976 may only be completed and submit- 1880) . . . . . . . . . . . . . . . . . . . . . . . . . . 501(c)(23)
to 1.39%. At the same time, the legislation re- ted electronically at: Electronically Submit Your National Railroad Retirement Investment
pealed the 1% special rate that applied if the Trust . . . . . . . . . . . . . . . . . . . . . . . . . . 501(c)(28)
Form 8976, Notice of Intent to Operate Under
Religious and apostolic associations . . . . 501(d)
private foundation met certain distribution re- Section 501(c)(4). Cooperative hospital service
quirements. The change is effective for taxable
Forms, Instructions and Publications. All organizations . . . . . . . . . . . . . . . . . . . . 501(e)
years beginning after December 20, 2019.
February 8, 2022
IRS forms, instructions and publications men- Cooperative service organizations of
Increase in UBTI for disallowed fringe re- tioned in this publication can be accessed on operating educational organizations . . . . . 501(f)
pealed. The Taxpayer Certainty and Disaster IRS.gov from the Forms and Instructions page.
Tax Relief Act of 2019 retroactively repealed In- Section 501(c)(24) organizations (section
ternal Revenue Code (IRC) Section 512(a)(7), 4049 ERISA trusts) are neither discussed in the
which increased unrelated business taxable in- Introduction text nor listed in the Organization Reference
come by amounts paid or incurred for qualified Chart.
This publication discusses the rules and proce-
transportation fringes. Congress had previously Similarly, farmers' cooperative associations
dures for organizations that seek recognition of
enacted this provision for amounts paid or in- that qualify for exemption under section 521,
exemption from federal income tax under sec-
curred after December 31, 2017. qualified state tuition programs described in
tion 501(a) of the Internal Revenue Code (the
Excise tax on executive compensation. section 529, qualified ABLE programs descri-
Code). It explains the procedures you must fol-
Section 4960, added by Public Law 115-97, ef- bed in section 529A, and pension, profit-shar-
low to obtain an appropriate determination letter
fective for tax years beginning after December ing, and stock bonus plans described in section
recognizing your organization's exemption, as
17, 2017, imposes an excise tax on an organi- 401(a) aren't discussed in this publication. Visit
well as certain other information that applies
zation that pays to any covered employee more IRS.gov for more information on these types of
generally to all exempt organizations. To qualify
than $1 million in remuneration or pays an ex- organizations. For telephone assistance, call 1–
for exemption under the Code, your organiza-
cess parachute payment during the year start- 877–829–5500.
tion must be organized for one or more of the
ing in 2018. See Excise Tax on Executive Com- Check the Table of Contents at the begin-
purposes specifically designated in the Code.
pensation, chapter 5. See also section 4960 ning of this publication to determine whether
Organizations that are exempt under section
and Form 4720, Return of Certain Excise Taxes your organization is described in this publica-
501(a) include those organizations described in
Under Chapters 41 and 42 of the Internal Reve- tion. If it is, read the chapter (or section) that ap-
section 501(c). Section 501(c) organizations
nue Code, for more information. plies to your type of organization for the specific
are covered in this publication.
Excise tax on net investment income of cer- information you must give when applying for
Chapter 1, Application, Approval, and Ap-
tain colleges and universities. Section 4968 recognition of exemption.
peal Procedures, provides general information
imposes an excise tax on the net investment in- about the procedures for obtaining recognition
come of certain private colleges and universi- Organization Reference Chart. The Organi-
of tax-exempt status.
ties. See Excise Tax on Net Investment Income zation Reference Chart enables you to locate at
Chapter 2, Filing Requirements and Re-
of Certain Colleges and Universities, chapter 5. a glance the section of the Code under which
quired Disclosures, contains information about
See also section 4968 and Form 4720, Return your organization might qualify for exemption. It
annual filing requirements and other matters
of Certain Excise Taxes Under Chapters 41 and also shows the required application form and, if
that may affect your organization's tax-exempt
42 of the Internal Revenue Code, for more infor- your organization meets the exemption require-
status.
mation. ments, the annual return to be filed (if any), and
Chapter 3, Section 501(c)(3) Organizations,
whether or not a contribution to your organiza-
Separate UBTI calculation for each trade or contains detailed information on various matters
tion will be deductible by a donor. It also de-
business. Organizations with more than 1 un- affecting section 501(c)(3) organizations, in-
scribes each type of qualifying organization and
related trade or business must compute unrela- cluding a section on the determination of private
the general nature of its activities.
ted business taxable income (UBTI), including foundation status.
Chapter 4, Other Section 501(c) Organiza- You may use the Organization Reference
for purposes of determining any net operating
tions, includes separate sections for specific Chart to identify the Code section that you think
loss deduction, separately with respect to each
types of organizations described in section applies to your organization. Any correspond-
such trade or business. See Unrelated Busi-
501(c). ence with the IRS (in requesting forms or other-
ness Income Tax Return, chapter 2. See also
Chapter 5, Excise Taxes, provides informa- wise) can be responded to faster if you indicate
Schedule A (Form 990-T). The UBTI with re-
tion on when excise taxes may be imposed. in your correspondence the appropriate Code
spect to any such trade or business shall not be
Chapter 6, How to Get Tax Help, provides section. Check the IRS website, IRS.gov, for
less than zero when computing total UBTI.
tips and resources on where to find answers to the latest updates, Tax Information for Charities
Exception from the excise tax on excess & Other Non-Profits, Tax Information for
business holdings. Section 4943(g) created tax questions or other assistance.
Charities & Other Non-Profits.
an exception from the excise tax on excess
business holdings for certain independently op- Organizations not discussed in this publi-
cation. Certain organizations that may qualify Comments and suggestions. We welcome
erated enterprises whose voting stock is wholly your comments about this publication and your
owned by a private foundation. For more de- for exemption aren't discussed in detail in this
publication, although they are included in the suggestions for future editions.
tails, see Excess Business Holdings, chapter 5
Organization Reference Chart and the applica- You can send us comments through
Organizational Changes. For tax years be- IRS.gov/FormComments. Or, you can write to
tion procedures discussed in Chapter 1. These
ginning on or after January 1, 2018, the IRS will Internal Revenue Service, Tax Forms and Pub-
organizations (and the Code sections that apply
no longer require a new exemption application lications, 1111 Constitution Ave. NW, IR-6526,
to them) are as follows:
from a domestic section 501(c) organization Washington, DC 20224.
that undergoes certain changes of form or place Although we can’t respond individually to
of organization, as described in Rev. Proc. each comment received, we do appreciate your
2018-15, 2018-9 I.R.B. 379. feedback and will consider your comments as
Group Exemptions. Beginning January 2019,
the IRS will no longer send the List of Parent
Publication 557 (January 2022) Page 3we revise our tax forms, instructions, and publi- • 501(c)(8) Fraternal beneficiary societies,
cations. Don’t send tax questions, tax returns,
or payments to the above address. Application Procedures orders, or associations,
• 501(c)(9) Voluntary employees’ beneficiary
associations,
Getting answers to your tax questions. Oral requests for recognition of exemption won't • 501(c)(10) Domestic fraternal societies, or-
If you have a tax question not answered by this be considered by the IRS. Your application for ders, etc.,
publication or How to Get Tax Help section at recognition of tax-exempt status must be in writ- • 501(c)(11) Teachers’ Retirement Fund As-
the end of this publication, go to the IRS Inter- ing using the appropriate forms as discussed sociations,
active Tax Assistant page at IRS.gov/Help/ITA
DRAFT AS OF
below. • 501(c)(12) Benevolent life insurance asso-
where you can find topics using the search fea- ciations, mutual ditch or irrigation compa-
ture or by viewing the categories listed.
Forms Required nies, mutual or cooperative telephone
Getting tax forms, instructions, and pub- companies,
lications. Visit IRS.gov/Forms to download • 501(c)(13) Cemetery companies,
If your organization is seeking recognition of ex-
current and prior-year forms, instructions, and • 501(c)(14) State-Chartered Credit Unions,
emption from federal income tax, it must use a Mutual Reserve Funds,
publications.
February 8, 2022
specific application prescribed by the IRS in
• 501(c)(15) Mutual insurance companies or
Ordering tax forms, instructions, and Rev. Proc. 2022-5, I.R.B 256, as amended by associations,
Rev. Proc. 2022-8. If your organization is a cen-
publications. Go to IRS.gov/OrderForms to • 501(c)(16) Cooperative Organizations to
order current forms, instructions, and publica- tral organization with exempt status, see Group Finance Crop Operations,
Exemption Letter, later. All applications must be
tions; call 800-829-3676 to order prior-year • 501(c)(17) Trusts providing for the pay-
forms and instructions. The IRS will process signed by an authorized individual. ment of supplemental unemployment com-
your order for forms and publications as soon pensation benefits,
Form 1023, Application for Recognition of
as possible. Don’t resubmit requests you’ve al- • 501(c)(18) Employee Funded Pension
ready sent us. You can get forms and publica- Exemption Under Section 501(c)(3) of the
Trust (created before June 25, 1959,
Internal Revenue Code. File Form 1023 if you
tions faster online. • 501(c)(19) A post, organization, auxiliary
are seeking recognition of exemption under
unit, etc. of past or present members of the
section:
Armed Forces of the United States,
• 501(c)(3) Corporations, organized and op- • 501(c)(21) Black Lung Benefit Trusts,
erated exclusively for religious, charitable,
• 501(c)(22) Withdrawal Liability Payment
Fund,
scientific, testing for public safety, literary,
• 501(c)(23) Veterans’ Organization (created
1. or educational purposes, or to foster na-
tional or international amateur sports, or
before 1880),
prevention of cruelty for children or ani-
• 501(c)(25) Title holding corporations or
trusts,
mals, including the following types of or-
•
Application, ganizations to which the specified subsec-
tions are applicable,
501(c)(26) State-Sponsored Organization
Providing Health Coverage for High-Risk
Individuals,
• 501(e) Cooperative hospital service organ-
Approval, and ization,
• 501(c)(27) State-Sponsored Workers’
Compensation Reinsurance Organization,
• 501(f) Cooperative service organization of
• 501(c)(28) National Railroad Retirement
Appeal •
operating educational organizations,
501(k) Certain organizations providing
•
Investment Trust,
501(c)(29) CO-OP health insurance issu-
child care,
Procedures •
•
501(n) Charitable risk pools,
501(q) Credit counseling organizations,
•
ers, and
501(d) Religious and Apostolic Associa-
tions.
and
• 501(r) Hospital organizations. Also, organizations requesting determinations
Introduction under Section 521 are now able to use the elec-
Applications for exempt status on a Form tronic Form 1024 instead of Form 1028, Appli-
If your organization is one of the organizations 1023 must be electronically submitted through cation for Recognition of Exemption Under Sec-
described in this publication and is seeking rec- Pay.gov. See Rev. Proc. 2022-5. tion 521 of the Internal Revenue Code
ognition of tax-exempt status from the IRS, you As of January 3, 2022, applications for ex-
should follow the procedures described in this Form 1023-EZ, Streamlined Application for empt status on a Form 1024 must be electroni-
chapter and the instructions that accompany Recognition of Exemption Under Section cally submitted through Pay.gov. The IRS will
the appropriate application forms. 501(c)(3) of the Internal Revenue Code. provide a 90-day grace period during which it
For information on section 501(c)(3) organi- You may be eligible to file Form 1023-EZ if you will continue to accept paper versions of Form
zations, go to Section 501(c)(3) Organizations, are a smaller organization (assets of $250,000 1024 (Rev. 01-2018) and letter applications;
chapter 3. If your organization is seeking ex- or less and annual gross receipts of $50,000 or however, after April 4, 2022 the Form 1024
emption under one of the other paragraphs of less) seeking recognition of exemption under must be submitted electronically. See Rev Proc
section 501(c), see chapter 4. section 501(c)(3). See Rev. Proc. 2022-5. 2022-5 as amended by Rev. Proc. 2022-8. If
Applications for exempt status on a Form you are filing Form 1024 on paper during the
Topics 1023-EZ must be electronically submitted grace period, you must also submit Form 8718
This chapter discusses: through Pay.gov. with your application to submit the user fee.
• Application procedures that generally Form 1024, Application for Recognition of Form 1024-A, Application for Recognition
apply to all organizations discussed in this Exemptions Under Section 501(a) or Sec- of Exemption Under Section 501(c)(4) of
publication, including the application tion 521 of the Internal Revenue Code. File the Internal Revenue Code. File Form
forms; Form 1024 if you are seeking recognition of ex- 1024-A if you are seeking recognition of exemp-
• Determination letters (approvals/ emption under section: tion under section 501(c)(4).
disapprovals); • 501(c)(2) Title holding corporations, Submitting Form 1024-A does not satisfy an
• Appeal procedures available if an adverse • 501(c)(5) Labor, agricultural, or horticul- organization’s requirement to notify the Com-
determination letter is proposed; and tural organizations, missioner that it is operating under section
• Group exemption letters. • 501(c)(6) Business leagues, chambers of 501(c)(4), as required by section 506. See
commerce, etc., IRS.gov for information on satisfying the
• 501(c)(7) Social clubs,
Page 4 Chapter 1 Application, Approval, and Appeal Proceduresnotification requirement using Form 8976, No- for requests other than applications, can be was filed and approved by a state official.) A
tice of Intent to Operate Under Section 501(c) found in Rev. Proc. 2022-1. copy of the articles of incorporation can also be
(4). submitted with a written declaration signed by
Form 1024-A, Application for Recognition of EO Determinations can request technical an authorized individual indicating the copy is
Exemption Under Section 501(c)(4), must be advice from the Office of Chief Counsel (EEE) complete and was filed and approved by the
filed electronically on Pay.gov. on any question that can't be resolved on the state, including the date filed.
basis of law, regulations, or a clearly applicable If you are formed as a limited liability com-
Form 1028, Application for Recognition of revenue ruling or other published precedent. pany and have adopted an operating agree-
DRAFT AS OF
Exemption Under Section 521 of the Inter- See section 3, Rev. Proc. 2022-5. ment, submit the operating agreement along
nal Revenue Code. Use Form 1028, Applica- with your state-approved articles of organiza-
tion for Recognition of Exemption Under Sec- Reminder. The law requires payment of a user tion.
tion 521 of the Internal Revenue Code, if your fee for determination letter requests. Go to Rev.
If your organization's name has been offi-
organization is a farmers’ cooperative seeking Proc. 2022-5,Appendix A, to find the required
cially changed by an amendment to your organ-
recognition of exemption under section 521. payment. Payment must accompany each re-
izing instruments, you should also attach a con-
You must also submit Form 8718. quest.
formed copy of that amendment to your
February 8, 2022
Alternatively, organizations requesting de- application.
Non-exemption for terrorist organizations.
terminations under Section 521 are now able to
An organization that is identified or designated Conformed copy. A conformed copy is a
use the electronic Form 1024 instead of Form
as a terrorist organization within the meaning of copy that agrees with the original and all
1028.
section 501(p)(2) isn't eligible to apply for rec- amendments to it. If the original document re-
ognition of exemption. quired a signature, the copy should either be
Form 8871, Political Organization Notice of
Section 527 Status. Use Form 8871, Political signed by a principal officer or, if not signed, be
User fee. The law requires the payment of a accompanied by a written declaration signed by
Organization Notice of Section 527 Status, if
user fee for determination letter requests such an authorized officer of the organization. With
you are a political organization seeking to be
as your application for recognition of tax-ex- either option, the officer must certify that the
treated as tax-exempt under section 527 unless
empt status. User fees are listed in Rev. Proc. document is a complete and accurate copy of
an exception applies. See Political Organization
2022-5, Appendix A. If you are filing Form 1023, the original. A certificate of incorporation should
Income Tax Return, later.
Form 1023-EZ, Form 1024 or 1024-A, the user be approved and dated by an appropriate state
Some organizations don’t have to use spe- fee must be submitted through Pay.gov.
cific application forms. The application your or- official.
ganization must use is specified in the chapter For the current user fee amount and Bylaws. Bylaws alone aren't organizing
in this publication dealing with your kind of or- TIP other information about applying for documents. However, if your organization has
ganization. It is also shown in the Organization tax-exempt status go to IRS.gov and adopted bylaws, include a current copy. The
Reference Chart, later. select “Charities and Non-Profits” from the but- bylaws need not be signed if submitted as an
Form 8871 must be filed at the IRS Political tons near the top. Next, select “Applying for attachment.
Organizations Filing and Disclosure site. Tax-Exempt Status” for more information. You
can also call 1-877-829-5500. Bylaws may be considered an organiz-
Power of attorney. If your organization ex- TIP ing document only if they are properly
pects to be represented by an individual such structured (includes name, purpose,
as an attorney, CPA, officer or other person au- Required Information and signatures, and intent to form an organization).
thorized to practice before the IRS, whether in Documents
person or by correspondence, you must file a Attachments. When submitting attachments,
Form 2848, Power of Attorney and Declaration Employer identification number (EIN). Ev- every attachment should show your organiza-
of Representative, with your exemption applica- ery exempt organization must have its own EIN, tion's name and EIN. It should also state that it
tion. The power of attorney must specifically au- whether or not it has any employees. An EIN is is an attachment to your application form and
thorize an individual to represent your organiza- required before an exemption application is identify the part and line item number to which it
tion. You can't name an organization, firm, etc. submitted. Information on how to apply for an applies.
as your representative. Form 2848 can be used EIN can be found online at Employer ID
for this purpose. The categories of individuals Numbers (EIN). The EIN is issued immediately Original documents. Don't submit original
who can represent you before the IRS are listed once the application information is validated. documents because they become part of the
on the form. If you previously applied for an EIN and IRS file and can't be returned.
haven't yet received it, or you are unsure
Form 8940, Request for Miscellaneous De- Description of activities. Your application
whether you have an EIN, please call our
termination. You can request miscellaneous must include a full description of the proposed
toll-free customer account services number,
determinations under sections 507, 509(a), activities of your organization, including each of
1-877-829-5500, for assistance.
4940, 4942, 4945, and 6033 using Form 8940. the fundraising activities of a section 501(c)(3)
Nonexempt charitable trusts also file Form 8940 Organizing documents. If you are submitting organization and a narrative description of an-
for an initial determination of section 509(a)(3) an application other than Form 1023-EZ, your ticipated receipts and contemplated expendi-
status or change to their type. See Form 8940 application should include a copy of the organ- tures. When describing the activities in which
and instructions for more information. izing or enabling document that is signed by a your organization expects to engage, you must
principal officer or is accompanied by a written include the standards, criteria, procedures, or
Requests other than applications. other means that your organization adopted or
declaration signed by an authorized individual
Requests other than applications for planned for carrying out those activities.
certifying that the document is a complete and
recognition of exemption or Form 8940 To determine the information you need to
accurate copy of the original or meets the re-
(for example, requests for letter rulings involv- provide, you should study the part of this publi-
quirements of a conformed copy in Rev. Proc.
ing feeder organizations, application of excise cation that applies to your organization. The ap-
2011-9, sec. 3.08(5). If you are submitting a
taxes to activities of private foundations, taxa- propriate chapter will describe the purposes
Form 1023-EZ, you don’t need to include a
tion of unrelated business income, etc.) should and activities that your organization must pur-
copy of your organizing documents with the ap-
be sent to the appropriate address listed in Rev. sue, engage in, and include in your application
plication. However, you may be asked to pro-
Proc. 2022-1, 2022-1 I.R.B. 1. in order to achieve exempt status.
vide it during the application review process.
These requests, similar to applications for If your organizing or enabling document are Often, your organization's articles of organi-
recognition of exemption previously discussed, articles of incorporation, include evidence that it zation (or other organizing instruments) contain
must be accompanied by the appropriate user was filed and approved by a state official. (For descriptions of your organization's purposes
fee. The schedule for user fees, including those example, a stamped “Filed” copy dated by the and activities.
Secretary of State is prima facie evidence that it
Chapter 1 Application, Approval, and Appeal Procedures Page 5Your application should describe completely termination. These letters will be sent out as
and in detail your past, present, and planned
activities.
soon as possible after receipt of the organiza-
tion's application. Determination Letters
If you are filing Form 1023-EZ, also review
the Instructions for Form 1023-EZ for more in- Withdrawal of application. An organization Public charity status. A new section 501(c)
formation about what to include in your descrip- may withdraw an application at any time before (3) organization will be classified as a publicly
tion. the issuance of a determination letter upon the supported organization and not a private foun-
written request of a principal officer or author- dation if it can show when it applies for tax-ex-
DRAFT AS OF
Financial data. Unless you are filing Form ized representative of your organization. How- empt status that it reasonably can be expected
1023-EZ, you must include in your application a ever, the withdrawal won't prevent the informa- to be publicly supported.
statement of revenues and expenses for the tion contained in the application from being
number of years specified in the applicable form used by the IRS in any subsequent examination An organization must describe fully the ac-
instructions. For each accounting period, you of your organization's returns. The information tivities in which it expects to engage. This in-
must describe the sources of your receipts and forwarded with an application won't be returned cludes standards, procedures, or other means
the nature of your expenditures. You must also to your organization and, generally, when an adopted or planned by the organization for car-
February 8, 2022
include a balance sheet for your most recently application is withdrawn, the user fee paid won't rying out its activities, expected sources of
completed tax year or if you haven’t completed be refunded. funds, and the nature of its contemplated ex-
a full tax year, the most current information penses.
available. Requests for withholding of information
from the public. The law requires many ex- Adverse determination. A proposed adverse
If you haven't yet begun operations, or have
empt organizations and private foundations to determination letter will be issued to an organi-
operated for less than 1 year, a proposed
make their application forms and annual infor- zation that has not provided sufficiently detailed
budget for 2 full accounting periods and a cur-
rent statement of assets and liabilities will be mation returns available for public inspection. information to establish that it qualifies for ex-
The law also requires the IRS to make available emption or if the information provided estab-
acceptable.
for public inspection, in accordance with section lishes that it doesn't qualify for exemption. An
Exempt status established in application. If 6104 and the related regulations, your ap- organization can appeal a proposed adverse
your application and its supporting documents proved application for recognition of exemption determination letter. See Appeal Procedures,
show that your organization meets the require- (including any papers submitted in support of later.
ments for tax-exempt status under the Code the application) and the determination letter
(discussed later, under Determination Letters). Expedited Handling. Exempt organization de-
section you applied, the IRS will issue a favora-
Any information submitted in the application termination letter requests may be eligible for
ble determination letter.
or in support of it that relates to any trade se- expedited handling under section 4.09 of Rev.
cret, patent, process, style of work, or appara- Proc. 2022-5, as modified by section 3.02 of
Miscellaneous Procedures tus, upon request, can be withheld from public Rev. Proc. 2022-8.
inspection if the IRS determines that the disclo-
To help in processing your application, be sure sure of such information would adversely affect Effective Date of Exemption
to attach all schedules, statements, and other the organization. Your request must:
documents required by the application form. If
1. Identify the material to be withheld (the A determination letter recognizing exemption is
you don’t attach them, you may have to resub-
document, page, paragraph, and line) by usually effective as of the date of formation
mit your application or you may otherwise en-
clearly marking it “Not Subject to Public of an organization if, the organization submit-
counter a delay in processing your application.
Inspection.” ted the application for recognition of exemption
Incomplete application. If an application isn't within 27 months from the end of the month in
2. Explain why the information is of the type
complete and doesn't contain all the required which it was organized and during the period
that can be withheld from public inspec-
attachments found under Required Inclusions, before the date of the determination letter, its
tion.
the IRS will return it to you for completion. The purposes and activities are consistent with the
IRS will no longer request the missing informa- 3. Be filed with the office where your organi- requirements for exempt status under the appli-
tion if the application is incomplete. However, zation files the documents in which the cable section of 501(c). Upon obtaining recog-
the IRS may, but is not required to, request ad- material to be withheld is contained. nition of exemption, the organization can file a
ditional information to validate information pre- claim for a refund of income taxes paid for the
sented or to clarify an inconsistency on a Form Where to file. Submit Form 1023, 1023-EZ, period for which its exempt status is recog-
1023-EZ. See Rev. Proc. 2022-5, 2022–1 I.R.B. 1024, or 1024-A through Pay.gov. Send other nized.
256. applications for recognition of exempt status
(e.g., Form 1024) with all attachments, includ- An organization that does not submit its ap-
If the IRS returns the application or requests
ing Form 8718, to: plication for exemption within that 27-month pe-
additional information from you, that application
riod but otherwise meets the requirements for
will be considered filed on the date the substan-
Internal Revenue Service tax-exempt status will be recognized as exempt
tially completed application is postmarked, or if
PO Box 12192 from the postmark date of application or the
no postmark, received at the IRS.
TE/GE Stop 31A Team 105 submission date of its Form 1023, Form 1024,
For applications that are returned to the ap- Covington, KY 41012-0192 Form 1023-EZ, or Form 1024-A, if applicable.
plicant because they aren't complete, the user See Rev. Proc. 2022-5, as amended by Rev.
fee will be returned or refunded. Proc. 2022-8.
EO Determinations will consider your com-
Additional information may be requested if
plete application and will issue you a favorable
necessary to clarify the nature of your organiza- If an organization is required to alter its ac-
determination letter, an adverse letter denying
tion. tivities or substantially amend its charter to
the exempt status requested in your application
or, if you are asked to provide supplemental in- qualify, the determination letter recognizing ex-
IRS responses. Organizations that success- emption will be effective as of the date speci-
formation and fail to respond, may close your
fully submit Form 1023, Form 1023-EZ, Form fied in the letter. If a nonsubstantive amend-
case without making a determination if you
1024, or Form 1024-A on Pay.gov will receive ment is made, such as correction of a clerical
don't respond to a request for additional infor-
an email from Pay.gov confirming payment of error in the enabling instrument or the addition
mation. EO Determinations will also close your
the user fee. Organizations that submit a com- of a dissolution clause, exemption will ordinarily
case without a determination if you withdraw
plete Form 1024 application will receive an ac- be recognized as of the date of formation if the
your request.
knowledgment from the IRS. In addition, any activities of the organization before the determi-
applicant may receive a letter requesting addi- nation are consistent with the exemption re-
tional information the IRS needs to make its de- quirements.
Page 6 Chapter 1 Application, Approval, and Appeal ProceduresA determination letter recognizing exemp- Written notice. If the IRS concludes, as a re- 2. A statement that the organization wants to
tion can't be relied on if there is a material sult of examining an information return or con- protest the determination.
change, inconsistent with exemption, in the sidering information from any other source, that
3. A copy of the letter showing the determi-
character, the purpose, or the method of opera- a determination letter should be revoked or
nation you disagree with, or the date and
tion of the organization. Also, a determination modified, the organization will be advised in
IRS office symbols on the determination
letter can't be relied on if it is based on any writing of the proposed action and the reasons
letter.
omission or inaccurate material information for it.
submitted by the organization. See section 11 The organization will also be advised of its 4. A statement of facts supporting the organi-
DRAFT AS OF
of Rev. Proc. 2022-5. right to protest the proposed action by request- zation's position in any contested factual
ing Independent Office of Appeals considera- issue.
For more information about the effective tion. The appeal procedures are discussed
date of exemption, see Rev. Proc. 2022-5, sec- 5. A statement outlining the law or other au-
next. thority the organization is relying on.
tion 6.
6. A statement as to whether a conference at
Revocation of Exemption Appeal Procedures the Independent Office of Appeals is de-
February 8, 2022
sired.
A determination letter recognizing exemption If your organization applies for recognition of The statement of facts in item 4 must be de-
may be revoked by: tax-exempt status and Rulings and Agreements clared true under penalties of perjury. This may
determines your organization doesn't qualify for be done by adding to the protest the following
1. A notice to the organization to which the exemption, your organization will be advised of
determination letter originally was issued, signed declaration:
its rights to protest the determination by re-
2. Enactment of legislation or ratification of a questing Independent Office of Appeals consid-
“Under penalties of perjury, I declare that I
tax treaty, eration. Your organization must submit a state- have examined the statement of facts
ment of its views fully explaining its reasoning. presented in this protest and in any
3. A decision of the United States Supreme The statement must be submitted within 30 accompanying schedules and statements and,
Court, days from the date of the proposed adverse de- to the best of my knowledge and belief, it is
4. Issuance of temporary or final regulations, termination letter and must state whether your true, correct, and complete.”
or organization wishes Independent Office of Ap-
Signature.
peals consideration.
5. Issuance of a revenue ruling, a revenue
procedue, or other statement published in If the organization's representative submits the
Representation. A principal officer or trustee
the Internal Revenue Bulletin or Cumula- appeal, a substitute declaration must be inclu-
can represent an organization at any level of
tive Bulletin. ded, stating:
appeal within the IRS. Also, an attorney, certi-
6. Section 6033(j), for failure to file a required fied public accountant, or individual enrolled to 1. That the representative prepared the ap-
annual return or notice, for three consecu- practice before the IRS can represent the or- peal and accompanying documents, and
tive years, automatically. ganization.
2. Whether the representative knows person-
If the organization's representative attends a
ally that the statements of fact contained in
When revocation takes effect. If the organi- conference without a principal officer or trustee,
the appeal and accompanying documents
zation omitted or misstated material informa- the representative must file a proper power of
are true and correct.
tion, operated in a manner materially different attorney or a tax information authorization be-
from that originally represented, or, with regard fore receiving or inspecting confidential infor- Be sure the appeal contains all of the infor-
to organizations to which section 503 applies, mation. Form 2848 or Form 8821, Tax Informa- mation requested. Incomplete appeals will be
engaged in a prohibited transaction (such as di- tion Authorization, as appropriate (or any other returned for completion.
verting corpus or income from its exempt pur- properly written power of attorney or authoriza-
pose), or if there has been a change in the ap- tion), can be used for this purpose. These forms The Independent Office of Appeals, after
plicable law, the revocation or modification may are available on IRS.gov from the Forms and In- any requested conference and upon considera-
be retroactive. structions page. For more information, see Pub- tion of the organization's appeal as well as infor-
lication 947, Practice Before the IRS and Power mation presented in any conference held, will
Material change in organization. If there is a of Attorney,which is also available on IRS.gov generally notify the organization of its decision
material change, inconsistent with exemption, from the Forms and Instructions page. and issue an appropriate determination letter.
in the character, purpose, or method of opera- An adverse decision can be appealed to the
tion of the organization, revocation or modifica- courts (discussed later). If new information is
tion will ordinarily take effect as of the date of
Independent Office of submitted during Independent Office of Appeals
that material change. An organization may seek Appeals Consideration consideration, the matter may be returned to
relief from retroactive revocation or modification Rulings and Agreements for further considera-
of a determination letter under section 7805(b). Before forwarding a case to the Independent tion. See section 9 of Rev. Proc. 2022-5 for
For more information on requesting section Office of Appeals, Rulings and Agreements will more information.
7805(b) relief, see section 12 of Rev. Proc. consider the applicant’s statement protesting
and appealing (hereinafter appealing) the pro- The Independent Office of Appeals must re-
2022-5
posed adverse determination. If the organiza- quest technical advice on any exempt organiza-
Relief from retroactivity. If a determina- tion does not submit the information that pro- tion issue concerning qualification for exemp-
tion letter was issued in error or the IRS vides a basis for Rulings and Agreements to tion or foundation status for which there is no
changed its position after issuing a letter, and if reconsider its adverse determination, it will for- published precedent or for which there is rea-
section 7805(b) relief is granted, retroactivity of ward the appeal and case file to the Independ- son to believe that nonuniformity exists. If an or-
the revocation ordinarily will be limited to a date ent Office of Appeals. For more information ganization believes that its case involves such
not earlier than that on which the original deter- about the role of the Independent Office of Ap- an issue, it should ask the Independent Office
mination letter was revoked. peals, see Publication 892, How to Appeal an of Appeals to request technical advice.
IRS Decision on Tax-Exempt Status. The ap-
Foundations. The determination of the ef- Any determination letter issued on the basis
peal should include the following information.
fective date is the same for the revocation or of technical advice can't be appealed to the In-
modification of foundation status or operating 1. The organization's name, address, day- dependent Office of Appeals Office for those is-
foundation status unless the effective date is time telephone number, and employer sues that were the subject of the technical ad-
expressly covered by statute or regulations. identification number. vice.
Chapter 1 Application, Approval, and Appeal Procedures Page 7Administrative Remedies For example, if your organization has paid A central organization is an organization that
the tax resulting from the adverse determination has one or more subordinates under its general
In the case of an application under section and met all other statutory prerequisites, it can supervision or control. A subordinate organiza-
501(c) or 501(d) and exempt from tax under file suit for a refund in a U.S. District Court or tion is a chapter, local, post, or unit of a central
501(a), all of the following actions, called ad- the U.S. Court of Federal Claims. Or, if your or- organization.
ministrative remedies, must be completed by ganization elected not to pay the tax deficiency
resulting from the adverse determination and A subordinate organization may or may not
your organization before an unfavorable deter- be incorporated, but it must have an organizing
mination letter from the IRS can be appealed to met all other statutory prerequisites, it can file
document and it must have its own taxpayer
DRAFT AS OF
the courts. suit for a redetermination of the tax deficiencies
in the United States Tax Court. For more infor- identification number (EIN). A subordinate that
1. The filing of the correct completed applica- mation on these types of suits, get Publication is organized and operated in a foreign country
tion or group exemption request under 556, Examination of Returns, Appeal Rights, can't be included in a group exemption letter. A
section 501(c), or 501(d) and exempt from and Claims for Refund. subordinate described in section 501(c)(3) can't
tax under 501(a) (described earlier in this be included in a group exemption letter if it is a
chapter) or the filing of a request for a de- In certain situations, your organization can private foundation described in section 509(a).
February 8, 2022
termination of foundation status (see Pri- file suit for a declaratory judgment in the U.S.
vate Foundations and Public Charities in If your organization is a subordinate control-
District Court for the District of Columbia, the
chapter 3). led by a central organization (for example, a
U.S. Court of Federal Claims, or the U.S. Tax
church, a veterans' organization, or a fraternal
2. In the case of a late-filed application, re- Court. This remedy is available if your organiza-
organization), you should check with the central
questing relief under Regulations section tion received an adverse notice of final determi-
organization to see if it has been issued a group
301.9100 regarding applications for exten- nation, or if the IRS failed to make a timely de-
exemption letter that covers your organization.
sions of time for making an election or ap- termination on your initial or continuing
If it has, you don’t have to file a separate appli-
plication for relief from tax (see Application qualification or classification as an exempt or-
cation unless your organization no longer wants
for Recognition of Exemption in chap- ganization. However, your exempt status claim
to be included in the group exemption letter.
ter 3). must be as:
• An organization qualifying under section If the group exemption letter doesn't cover
3. The timely submission of all additional in- 501(c) or 501(d) and exempt from tax un- your organization, ask your central organization
formation requested to perfect an exemp- der 501(a), about being included in the next annual group
tion application or request for determina- • An organization to which a deduction for a ruling update that it submits to the IRS.
tion of private foundation status. contribution is allowed under section
170(c)(2), See Publication 4573, Group Exemptions,
4. Exhaustion of all administrative appeals
available within the IRS. • An organization that is a private foundation for additional general information about group
under section 509(a), exemption. Go to the Charities & Nonprofits
The actions just described won't be consid- • A private operating foundation under sec- page on IRS.gov for Group Exemption Resour-
ered completed until the IRS has had a reason- tion 4942(j)(3), or ces for the most current information and up-
able time to act upon the appeal or protest, as • A cooperative organization that is exempt dates.
the case may be. from tax under section 521.
An organization won't be considered to have Adverse notice of final determination. The
Central Organization
exhausted its administrative remedies before adverse notice of final determination referred to Application Procedure
the earlier of: above is a determination letter sent by certified
or registered mail holding that your organiza- Note: The content about the Central Organ-
1. The completion of the steps just listed and ization Application Procedure is included here
the sending by certified or registered mail tion:
• Isn't described in section 501(c) or 501(d) for informational purposes. However, as stated
of a notice of final determination, or in Notice 2020-36, IRB 2020-21, 840 and Rev.
and exempt from tax under 501(a), or sec-
2. The expiration of the 270-day period in tion 170(c)(2), Proc. 2022-5, IRB 2022-1, 256, the IRS is not
which the IRS has not issued a notice of fi- • Is a private foundation and not a public accepting any requests for group exemption let-
nal determination and the organization has charity described in a part of section 509 or ters until publication of the final revenue proce-
taken, in a timely manner, all reasonable section 170(b)(1)(A) dure described in the Notice or other guidance
steps to secure a ruling or determination. • Is not a private operating foundation as de- in the Internal Revenue Bulletin.
fined in section 4942(j)(3), or
270-day period. The 270-day period will be • Is a public charity described in a part of If your organization is a central organization
considered by the IRS to begin on the date a section 509(a) or section 170(b)(1)(A) with affiliated subordinates under its control, it
completed application, or group exemption re- other than the part under which your or- can apply for a group exemption letter for its
quest is sent or submitted to the IRS. See Appli- ganization requested classification. subordinates, provided it has obtained recogni-
cation Procedures, earlier, for information nee- tion of its own exemption. A central organization
ded to complete the application form. Favorable court rulings - IRS procedure. If obtains recognition of its own exemption by
If the application doesn't contain all of the a suit results in a final determination that your submitting Form 1023 or 1023-EZ, 1024 or
required items, it won't be further processed organization is exempt from tax, the IRS will is- 1024-A as described in their instructions with
and may be returned to the applicant for com- sue a favorable determination letter, provided the appropriate user fee. You request the group
pletion. The 270-day period, in this event, won't your organization has filed an application for ex- exemption letter for the central organization’s
be considered as starting until the date the ap- emption and submitted a statement that the un- subordinates by letter rather than a specific ap-
plication is remailed to the IRS with the reques- derlying facts and applicable law are the same plication form. The issuance of the group ex-
ted information, or, if a postmark isn't evident, as in the period considered by the court. emption letter relieves each of the covered sub-
on the date the IRS receives a completed appli- ordinates from filing its own application.
cation.
Group Exemption Letter A central organization that has previously
obtained recognition of its own exemption must
Appeal to Courts indicate its employer identification number and
A group exemption letter is a determination let- the date of the letter recognizing its exemption,
If the IRS issues an unfavorable determination ter issued to a central organization recognizing but need not forward documents already sub-
letter to your organization and you have ex- on a group basis the exemption under section mitted. However, if it has not already done so,
hausted all the administrative remedies just dis- 501(c) of subordinate organizations on whose the central organization must submit a copy of
cussed, your organization can seek judicial behalf the central organization has applied for any amendment to its governing instruments or
remedies. recognition of exemption. internal regulations as well as any information
Page 8 Chapter 1 Application, Approval, and Appeal ProceduresYou can also read
