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Life Cycle of a Private Foundation - Significant Events

In addition to periodic reporting, a private foundation may interact with the Internal Revenue Service at key times during its life cycle. You can get help from the IRS Exempt Organizations Division on the issues discussed below.


Reporting Changes to IRS
As stated in the exemption determination letter, a foundation must notify the IRS of material changes in its form or activities.

Private Foundation Terminations
As stated in the exemption determination letter, a foundation must notify the IRS when it terminates.  When terminating, a foundation should also consider the special tax rules that apply to the termination of a private foundation.

Private Letter Rulings and Determination Letters
You may want to seek a private letter ruling or determination letter on the tax consequences of material changes in your structure or activities.

Audit
In addition, the IRS may audit a private foundation to ensure that it is complying with the requirements for exemption and paying required taxes.


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Page Last Reviewed or Updated: 30-Apr-2013