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Applying for Exemption/Misc. Determination: Sample Questions

Government Affiliate

Applications for exemption and miscellaneous determination requests are assigned to Exempt Organizations specialists for review. If additional information is necessary to make a determination, a specialist will contact the organization for the information. Here’s a list of questions that might be asked on this topic.

1. Submit a copy of any ruling or determination you have from the IRS regarding any of the following items (if you have more than one ruling or determination on any of the following items, please submit all the rulings and/or determinations you have):

a. Your income is excludable from gross income under Section 115;

b. You are entitled to receive deductible contributions under Section 170(c)(1) 
    because contributions to you are for the use of governmental units; or

c. For employment tax purposes, you are a wholly owned instrumentality of one or 
    more states or political subdivisions of a state.  

2. If you do not have a ruling or determination described above, please provide responses to the following:

a. Were you created by one or more governmental units, organizations that are affiliates 
    of governmental units, or public officials acting in their official capacity? If yes, provide 
    a detailed description.

b. Provide a detailed statement of your support and fundraising activities, including the 
    amount of your support that is received from taxes, tolls, fines, government 
    appropriations or fees; the amount of your support that is from government grants or 
    contract payments; the amount of your support that is from public fund-raising activities; 
    the percentage of your time spent on public fund-raising efforts; and a description of your 
    public fund-raising efforts.

c. Are you required to report to a governmental unit(s), at least annually, information that is 
    comparable to that required on the Form 990, Return of Organization Exempt From 
    Income Tax? If yes, describe the information you report. Your description should include 
    whether any such reports are submitted voluntarily or whether they are submitted 
    pursuant to a government grant or contract.

d. Are you subject to financial audits by the governmental units? If so, describe the 
    circumstances, including whether the audits are conducted pursuant to a government 
    grant or contract.

e. Does a governmental unit, an organization that is an affiliate of a governmental unit, or a 
    public official acting in their official capacity have the authority to appoint or remove your 
    directors or officers? If yes, describe in the circumstances in detail.

f. Does a governmental unit, an organization that is an affiliate of a governmental unit, or a 
   public official acting in their official capacity have direction over your policies, programs, 
   and activities? If yes, describe the circumstances in detail.

g. Do you have any taxable subsidiaries or participate in joint ventures with non-exempt 
   entities? If yes, describe those activities and entities in detail.

h. Do any of your activities provide any benefits to private interests? If yes, describe them 
    in detail.

More information:

See the complete list of Applying for Exemption/Miscellaneous Determination Sample Questions by topic.

Page Last Reviewed or Updated: 16-Dec-2014