Exempt organizations - Uncle Fed's Tax*Board

Exempt organizations
7805(b) relief. §§1.511–2, 301.7805-1. (Secs.
511, 7805; ’86 Code.)
Rev. Rul. 78–289, 1978–2 C.B. 180.
210.42 Revocation of ruling letter; declaratory
judgment; injunctive relief. An action for
declaratory judgment and injunctive relief, to
enjoin the Service to reinstate a letter ruling that a
nonprofit educational organization qualifies for
tax-exempt status and that contributions to the
organization will constitute charitable deductions,
is barred by the prohibition in section 7421 against
suits restraining the assessment or collection of
any tax. (Sec. 7421, ’86 Code.)
“Americans United” Inc., 416 U.S. 752, Ct. D.
1963, 1974-2 C.B. 401.
210.43 Revocation of ruling letter; suit to
restrain assessment or collection. A court may
not, prior to the assessment and collection of any
tax, enjoin the Revenue Service from revoking a
ruling letter declaring that an organization qualifies
for tax-exempt status and from withdrawing
advance assurance to donors that contributions to
the organizations will constitute charitable deductions.
(Sec. 7421, ’86 Code.)
Bob Jones University, 416 U.S. 725, Ct. D.
1962, 1974-1 C.B. 354.
210.44 Royalties; interest in patent; donated
by owner. The fair market value of an interest in
a patent donated to a tax-exempt organization by
the owner of the patent is deductible as a charitable
contribution in the taxable year such property is
transferred. Any royalties paid to the tax-exempt
organization as a result of the transfer constitutes
income to the organization. (Sec. 170, ’86 Code.)
Rev. Rul. 58-260, 1958–1 C.B. 126.
210.45 Rulings; conformed copy of document.
The standards for acceptance of a “conformed
copy” of a document required to be submitted
by organizations applying for exemption
under section 501 are set forth. §1.501(a)–1. (Sec.
601.201, S.P.R.; Sec. 501, ’86 Code.)
Rev. Proc. 68–14, 1968–1 C.B. 768.
210.46 Rulings; effective date of exempt status.
Rulings granting exemption are generally
effective as of the date of incorporation or organization,
unless the incorporation simply changed
the legal form of an existing “exempt type” organization,
in which case there is incorporated in the
ruling a statement with respect to the period covered.
§39.101–1. (Sec. 101, ’39 Code; Sec. 501,
’86 Code.)
Rev. Rul 54–134, 1954-1 C.B. 88.
210.47 Rulings; procedures; appeal and protest
of adverse determinations. Procedures are
provided for applying for recognition of exemption
under section 501 and 521 and for revoking or
modifying exemption rulings and determination
letters. Rev. Proc. 80–25 superseded and Rev.
Proc. 76-34 modified. 1.170A-1, 1.501(a)-1,
1.509(a)-1, 1.521-1, 53.4942(b)-1, 1.9100-1.
(Sec. 601.201, S.P.R.; Secs. 170, 501, 509, 521,
4942, 7428, ’86 Code.)
Rev. Proc. 84-46, 1984-1 C.B. 541.
210.48 Rulings; procedures; group exemption
letters. Procedures are set forth under which
recognition of exemption may be obtained on a
group basis for subordinate organizations affiliated
with and under the general supervision or
control of a central organization. Rev. Proc. 77–38
superseded. §1.501(a)–1. (Sec. 601.201, S.P.R.;
Sec. 501, ’86 Code.)
Rev. Proc. 80-27, 1980-1 C.B. 677.
210.49 Rulings; public interest law firms.
Guidelines for the issuance of advance rulings of
exemption to public interest law firms and testing
the charitable character of such organizations
already holding favorable rulings. Amplified to
provide procedures under which such organizations
may accept attorneys’ fees for their services.
§1.501(c)(3)-1. (Sec. 601.201, S.P.R.; Sec. 501,
’86 Code.)
Rev. Proc. 71–39, 1971–2 C.B. 575; Rev. Proc.
75-13, 1975-1 C.B. 662.
210.50 Rulings; publicly supported organization.
The requirement of reg. 1.170A-9(e)(5)(i)
that an organization must have been in existence
for at least one taxable year consisting of at least
eight months in order to obtain a ruling or determination
letter that it is not a private foundation by
virtue of being described in sections 509(a)(1) and
170(b)(1)(A)(vi) does not apply to section
170(b)(1)(A)(iv) organizations. §§1.170A-9,
1.509(a)-2. (Secs. 170, 509; ’86 Code.)
Rev. Rul. 77-407, 1977-2 C.B. 77.
210.51 Rulings; publicly supported organization;
advance ruling. A newly created organization
that can reasonably be expected to meet the
requirements of section 170(b)(1)(A)(vi) for its
first three years of existence may receive a ruling
or determination letter that it will be treated as a
publicly-supported organization even though its
first taxable year consists of less than eight
months. §1.170A-9. (Sec. 170, ’86 Code.)
Rev. Rul. 75-211, 1975-1 C.B. 86.
210.52 Rulings; publicly supported organization;
advance ruling. An organization described
in section 501(c)(3) having a first taxable year
consisting of exactly eight months and that meets
the requirements of section lo is
entitled to a ruling or determination letter that it
is not a private foundation. §1.170A-9. (Sec. 170,
’86 Code.)
Rev. Rul. 76-27, 1976-1 C.B. 64.
210.53 Rulings; publicly supported organization;
advance ruling period. The advance ruling
period will be three years for a newly created publicly
supported organization described in section
170(b)(1)(A)(vi) having a first taxable year consisting
of more than seven but less than eight
months. §1.170A-9. (Sec. 170, ’86 Code.)
Rev. Rul. 74-487, 1974-2 C.B. 82.
210.54 Rulings; publicly supported organization;
extended advance ruling. A newly created
organization, exempt from tax under section
501(c)(3), that wishes to obtain an extended
advance ruling for purposes of determining
whether it will qualify as a publicly supported
organization must submit a request for the
extended advance ruling at the same time as its
request for an initial advance ruling. §§1.170A-9,
1.509(a)-3. (Secs. 170, 509; ’86 Code.)
Rev. Rul. 77-115, 1977-1 C.B. 154.
210.55 Rulings; religious and apostolic organizations.
Information to be included in exemption
applications filed by religious and apostolic
organizations is set forth. Rev. Proc. 68–24 superseded.
§1.501(a)–1. (Sec. 601.201, S.P.R.; Sec.
501, ’86 Code)
Rev. Proc. 72-5, 1972-1 C.B. 709.
210.56 Rulings; technical advice to District
Directors and Appeals Office. Procedures are
provided for furnishing technical advice to key
District Directors or Appeals Offices on employee
plan and exempt organization matters. Modified
by Rev. Proc. 83-41. (Sec. 601.201, S.P.R.)
Rev. Proc. 80-26, 1980-1 C.B. 671.
210.57 Rulings; timely notification of
application for exemption. An organization that
has no gross receipts in its first two taxable years,
but receives more than $15,000 in contributions
from the general public in its third taxable year,
meets the notice requirement of section 508(a) if
it files for exemption under section 501(c)(3)
within 90 days after the close of its third taxable
year. It will be recognized as exempt as of the date
of its organization. Rev. Rul. 80-113 modified.
§§1.501(c)(3)-1, 1.508-1. (Secs. 501, 508; ’86
Code.)
Rev. Rul. 85-173, 1985-2 C.B. 164.
210.58 Rulings; untimely notification;
advance ruling period. An organization having
no financial support filed the notice required by
section 508(a) more than 15 months after the end
of the month it was organized. The organization
may obtain an advance ruling treating it as an organization
described in sections 170(b)(1)(A)(vi)
and 509(a)(1) for the period beginning on the date
the notice was filed, which is the date the organization
is recognized as exempt under section
501(c)(3). §§1.170A-9, 1.508-1, 1.509(a)-2.
(Secs. 170, 508, 509; ’86 Code.)
Rev. Rul. 80-113, 1980-1 C.B. 58.
210.59 Rulings and determination letters;
issuance procedures. Procedures are provided for
issuing rulings and determination, opinion, notification,
and information letters and for entering
into closing agreements on specific issues in em
ployee plans and exempt organization matters.
Rev. Proc. 80–24 superseded; Rev. Procs. 76-47
and 80-39 modified. Modified by Rev. Proc.
83-41. (Sec. 601.201, S.P.R.)
Rev. Proc. 83–36, 1983-1 C.B. 763.
210.60 Rulings or determination letters;
court determined exemption. The procedures
are provided under which an organization that has
been determined by a court to qualify as an exempt
organization may obtain a ruling or determination
letter recognizing such qualification for the tax
years subsequent to that involved in the litigation.
Rev. Proc. 80-25 amplified. §§1.501(a)–1,
1.508–1, 1.521–1. (Sec. 601.201, S.P.R.; Secs.
501, 508, 521, ’86 Code.)
Rev. Proc. 80-28, 1980-1 C.B. 680.
210.61 Separate charitable fund. Exempt
organizations, other than those exempt under section
101(6) of the ’39 Code, may establish a separate
fund exclusively for religious, charitable,
scientific, literary, or educational purposes, apart
from other funds, so that contributions to the fund
will be deductible. §§39.23(0)-1, 39.23(q)–1,
39.101(6)-1. (Secs. 23(o), 23(q), 101, ’39 Code;
Secs. 170, 501, ’86 Code.)
Rev. Rul. 54-243, 1954–1 C.B. 92.
210.62 Status; application for recognition.
An organization applying for recognition of
exemption under section 501(c)(3), whose existence
as a corporation under the applicable State
law begins on the date of the filing of its articles of
incorporation in the appropriate State office, is
considered “organized” on that filing date for purposes
of applying the notice provisions of section
508(a). §1.508-1. (Sec. 508, ’86 Code.)
Rev. Rul. 75–290, 1975-2 C.B. 215.
210.63 Status; application for recognition. A
religious organization that applies for recognition
of its status more than 15 months from the end of
the month in which it is organized will not be
treated as a section 501(c)(3) organization for the
period before its application was filed and services
performed by its employees during that period are
not excepted from employment for FICA and
FUTA purposes. §1.508-1. (Secs. 508, 3121,
3306; ’86 Code.)
Rev. Ru1. 76-262, 1976-2 C.B. 310.
210.64 Status; application for recognition.
An organization that filed an application for recognition
of exemption under section 501(c)(3) in
May 1976, following its incorporation in November
1975 to succeed an unincorporated association
that had operated for three years without filing an
application, will be recognized as exempt from the
date of mcorporation. An advance ruling concerning
the organization’s private foundation status