Exempt Organizations - Private Letter Rulings and Determination Letters
In some areas, the law requires that an organization notify the Internal Revenue Service or receive an advance determination before undertaking a transaction resulting in certain tax consequences. Thus, an exempt organization must request a private letter ruling or determination with respect to the following issues:
- Advance approval of scholarship programs, and certain other grant-making procedures, of private foundations (Internal Revenue Code section 4945(g))
- Determinations about application of the neighborhood land rule (Code section 514(b)(3))
- Status as an exempt operating foundation (Code section 4940(d))
- Establishment of a set-aside under the "suitability test" (Code section 4942(g)(2))
- Extension of disposal period for certain excess business holdings (Code section 4943(c)(7))
- Certain changes in an organization's accounting methods and periods (see Publication 4221-PF, for a general discussion of accounting methods and periods).
- Status as an organization described in section 501(c)(3), 501(c)(9), or 501(c)(17).
A private foundation must also notify the IRS when it intends to voluntarily terminate its private foundation status under Code section 507(a)(1).
- Publication 4221-PC, Compliance Guide for 501(c)(3) Public Charities
- Publication 4221-PF, Compliance Guide for 501(c)(3) Private Foundations
- Publication 4221-NC, Compliance Guide for Tax-Exempt Organizations (Other than Charities)
- Revenue Procedure 2014-4 (or latest update)
- Form 8940 for Miscellaneous Determination Requests