- 21.3.8.12 EXEMPT ORGANIZATIONS (EO)
- 21.3.8.13 EMPLOYEE PLANS (EP)
- 21.3.8.14 SECTION 527 ORGANIZATIONS
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If a 509(a)(3) organization wants to have its foundation classification reclassified, it must submit the information stated in IRM 21.3.8.12.5.4(1)h.
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If the organization is requesting expedited review in order to receive an Individual Retirement Account (IRA) distribution as provided by the Pension Protection Act of 2006, it must write at the top of the written request to change its foundation classification, "Pension Act – IRA Distribution" .
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If the organization is requesting expedited review for another reason, it must provide an explanation in its written request and write at the top of the request to change its foundation classification, "Expedite – 509(a)(3)."
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Mail the request to:
IRS
TE/GE Attn: Correspondence Unit Room 4024
P.O. Box 2508 Cincinnati, OH 45201 -
If the caller prefers, the information may be faxed to (513)263-3522.
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If an organization states that it has never been a 509(a)(3) supporting organization, prepare a Form 4442 and notate at the top of the form, "PPA 509(a)(3)." Give the referral to your manager, who will fax it to: TE/GE Attn: Correspondence Unit, (513)263-3522.
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Advise the caller that a response can be expected within 30 days.
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If an organization states it is changing its legal structure (changing from an association to incorporation, or if it incorporates in another state), explain that the organization will be considered a new entity and must apply for exemption by submitting a new application (Form 1023/1024). Refer caller to Rev. Rul. 67–390.
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Advise caller that even though the organization will have to apply for exemption as a new entity, it may not be necessary to apply for a new Employer Identification Number. Refer caller to Rev. Rul. 73–526.
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If an organization states it has amended its articles/bylaws/trust, advise the caller to submit a conformed copy of the amendments to:
IRS
TE/GE Attn.: Correspondence Unit, Room 4024
P. O. Box 2508
Cincinnati, OH 45201 -
Definition of conformed copy:
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IF INCORPORATED - Amended articles that show they have been filed with and approved by the state or a certificate with a state seal attached.
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IF an ASSOCIATION - Amended organizing document signed by at least two officers and showing the date of adoption.
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IF a TRUST - Amendment to the Trust document signed and dated by at least one trustee and approved by the appropriate authority, e.g. Probate Court.
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These procedures apply to organizations with terminated/suspended status (Status 20, 21, 32, or 98) that wish to be reinstated. Disclosure must be verified. See IRM 21.3.8.4.1.5. The information provided below assumes you are talking to an authorized individual. See IRM 21.3.8.5.1.3.1 if the caller is an unauthorized third party.
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The information required to be submitted for reinstatement depends on the organization’s current status on Master File:
If the organization is in status Then 20 or 21 1. Check EDS/TEDS for a "T" case.
2. If there is a "T" case, the organization must reapply.
3. If there is not a closed "T" case, verify the organization’s mailing address, update the address on IDRS as appropriate and prepare a Letter 4189C (Reinstatement Letter).32 Note:
This status will not be used after January 2008.
1. Research BMFOL/TXMOD to determine if a Form 990/990-EZ has posted (TC 150) or was received for processing (TC 594/599) after the Status 32 date.
a. If a Form 990/990-EZ has posted or was received for processing, update the status to 01 with 990-01 FR and continue addressing the caller’s issue.
b. If no Form 990/990-EZ has posted or was received for processing, continue to Step 2.
2. Check EDS/TEDS for an "F," "P," or "A" case closed after the Status 32 date.
a. If a closed case is found, update the status and filing requirements based on the EDS/TEDS information and continue addressing the caller’s issue.Note:
If EDS/TEDS shows a closed "T" case, the organization must reapply.
b. If no "F," "P," "A," or "T" case is located:-
Advise the caller that the exemption is suspended because we did not receive a response to a notice sent to them regarding filing Form 990.
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Advise the caller that the organization needs to file Form 990 in order to reactivate the exemption.
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Probe caller to determine the gross receipts/assets and advise caller if eligible to file Form 990-EZ.
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Recommend to the caller a self-help method of obtaining forms and explain what is needed ( Form 990 or Form 990-EZand instructions, Form 990 Schedule B, and, for 501(c)(3) organizations, Form 990 Schedule A and instructions). See IRM 21.3.8.3.7., Form/Publication Requests.
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If average gross receipts are $25,000 or less, advise caller that normally they would not be required to file a return. Because they did not respond to our notice, however, they must file a complete return, regardless of the amount of the income, in order for the exemption to be reactivated.
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Advise caller of the normal due date of the return. If the return is being filed late, advise the caller that a notice may be generated assessing a daily delinquency penalty when the return is posted. Advise the caller about reasonable cause abatement procedures.
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Verify the organization’s mailing address and update IDRS as necessary.
Note:
If the organization has an expired ARED, inform the caller that the organization will also have to submit a completed Form 8734(or a copy of its completed Form 990 Schedule A Part IV-A) to:
Internal Revenue Service
P.O. Box 192
Covington, KY 41012
3. If the caller was requesting an affirmation letter, advise him/her that we cannot issue a letter until the return is processed and the exemption is reactivated. Return processing averages about two months from the received date.98 Note:
Do Not send any CAS correspondence to an organization in status 98.
1. If an organization wants to request a reversal of its suspension, an officer of the organization must complete a signed request verifying that all information submitted is correct, and send to:
Office of Foreign Assets Control (OFAC)
U. S. Department of the Treasury
Treasury Annex 1500 Pennsylvania Avenue NW
Washington, DC 20220
2. OFAC reviews their request and provides written verification if the suspension is removed. See IRM 21.3.8.9.8, for information on Status Codes. -
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The response to the Letter 4189C (Reinstatement Letter) must be in writing and mailed to:
Internal Revenue Service
TE/GE Correspondence Unit, Room 4024
P. O. Box 2508
Cincinnati, OH 45201
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The term excise tax includes practically any tax which is not an ad valorem tax. An excise tax is a tax imposed on the performance of an act, the engaging in an occupation or the enjoyment of a privilege. An ad valorem tax is a tax imposed on the basis of the value of the article or thing taxed (Waxenberg v. Commissioner, 62 T.C. 59).
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Excise tax with relation to Exempt Organizations is a complex issue. Post-route questions beyond those listed in this section to the Excise Tax area using the TTG.
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Refer the caller to Publication 510, Excise Taxes, for additional information.
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Chapter 42 taxes include:
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The section 4940 tax on net investment income and the section 4948 tax on gross investment income. These two taxes are assessed only on private foundations and are assessed on Form 990-PF.
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The sections 4941, 4942, 4943, 4944, and 4945 taxes for prohibited behavior by private foundations. These taxes are assessed on Form 4720.
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The section 4955 tax (applies to section 501(c)(3) organizations, including private foundations), the section 4958 tax (applies to section 501(c)(3) public charities and to section 501(c)(4) organizations), the section 4965 tax (applies to sections 501(c), 501(d), 170(c), and 7701(a)(40) entities, the section 4966 tax (applies to section 170(c) organizations that are not private foundations and that maintain one or more donor-advised funds), and the section 4967 tax (relating to sponsoring organizations). These taxes are also assessed for prohibited behavior on Form 4720.
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The telecommunications excise tax is divided between a tax on local telephone service and a tax on long distance service.
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All tax exempt organizations are liable for this excise tax, except:
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The American National Red Cross (and other entities designated as an "international organization" either by Presidential Executive Order or by act of Congress)
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Nonprofit hospitals [§170(b)(1)(A)(iii)]
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Nonprofit educational organizations [§170(b)(1)(A)(ii)]
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Federal credit unions [§ 501(c)(1)]
Note:
See IRM 21.3.8.15.8.for information on Federal credit unions and government entities requesting refunds of erroneously-paid telecommunications excise tax.
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The U.S. Department of Treasury announced on May 25, 2006, that the § 4251 excise tax is no longer applicable to long distance telephone service.
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A credit or refund for the § 4251 excise tax for non-taxable long distance service billed after February 28, 2003, and before August 1, 2006, can be requested only on a 2006 federal income tax return filing.
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Exempt Organizations must file Form 990-T (regardless of whether or not the organization has UBI subject to filing) in order to claim a credit or refund of the § 4251 non-taxable long distance excise tax billed for the period indicated above. Refer to the 2006 instructions for Form 990-T for specific guidance.
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Refer organizations requesting a refund of non-taxable long distance excise tax billed after July 31, 2006, to the collector (long distance phone service carrier).
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See Notice 2006-50 and IRB 2006-25 for additional information.
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See IRM 21.3.8.15.8.for information on Federal credit unions and government entities requesting refunds of erroneously-paid telecommunications excise tax.
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Form 5768, Election/Revocation of Election by an Eligible Section 501(c)(3) Organization to Make Expenditures to Influence Legislation, is filed by an organization to make an election which allows the organization to use a variable percentage of its exempt purpose expenditures to attempt to influence legislation. If approved, the election remains in effect until the organization files the form (5768) again to revoke the election.
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The form may be signed and postmarked anytime within the first taxable year to which it applies. Thus, as long as it is postmarked by the last day of the fiscal year, it is valid for the entire fiscal year.
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Use the following table to assist in answering questions relating to Form 5768:
If And BMFOLE/ENMOD Reflect Then The organization is a 501(c)(3) and not a church, integrated auxiliary, or convention or association of churches A TC 024 (with no subsequent TC 023) Inform the organization that the election has already been made and will remain in effect until the organization files to revoke the election. No TC 024 Notify the organization we do not have record of the election. The organization is not a 501(c)(3) or the organization is a church, integrated auxiliary, or convention or association of churches Notify the organization that it does not qualify for the election. The organization wishes to revoke its election A TC 024 and a subsequent TC 023 Notify the organization the revocation has already been made. Only a TC 024 Inform the organization it must file a Form 5768 and mark the revocation box on the form. Neither a TC 024 nor TC 023 Notify the organization that we have no record that the election was made. Note:
The election is also reflected on INOLE in the Lobby Elect Year field. TC 024 and TC 023 display on ENMOD only while they are pending; once they have posted, they display only on BMFOLE.
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Churches and qualified church-controlled organizations that are opposed to the payment of social security and Medicare taxes for religious reasons may elect exemption from the payment of the employer’s share of these taxes by filing Form 8274, Certification by Churches and Qualified Church-Controlled Organizations Electing Exemption From Employer Social Security and Medicare Taxes.
Note:
This does not affect the employee’s liability.
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When a Form 8274 is processed, a TC 070 (See Doc 6209, Page 8-7) posts to the entity module of the account (use BMFOLE/ENMOD to view). The entity may also show an employment code "C."
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If the organization wants to reverse the election, it must follow the instructions in the form. A posted TC 071 reflects a revocation of the election.
Note:
TC 070 and TC 071 display on ENMOD only while they are pending; once they have posted, they display only on BMFOLE.
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Insubstantial goods or services which a charitable organization provides in exchange for contributions do not have to be acknowledged as quid pro quo. Goods and services are considered to be insubstantial if the payment occurs in the context of a fund-raising campaign in which a charitable organization informs the donor of the amount of the contribution that is a deductible contribution, and:
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The fair market value of the benefits received does not exceed the lesser of $89 or 2 percent of the payment, or
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The payment is at least $44.50, the only items provided bear the organization’s name or logo, and the cost of these items is within the limits for "low-cost articles" , currently $8.90 or less.
Note:
These values are subject to annual adjustments. The current values are established in Rev. Proc. 2006–53.
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For additional information, refer the caller to the following publications:
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Publication 526, Charitable Contributions
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Publication 1771, Charitable Contributions-Substantiation and Disclosure Requirements
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Section 134.5 of the United States Postal Service Regulations, 39 U.S.C. 3626-27 (1970) details organizations that qualify for preferred postal rates. If the caller wants additional information on this topic, direct him/her to contact the United States Postal Service.
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The Cumulative List (CL) of Organizations described in section 170(c) of the IRC of 1986, commonly known as Publication 78, is a computer–generated listing of names of organizations. These organizations have been determined to be entitled to receive tax deductible contributions by donors as provided in IRC 170.
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The CL provides information and guidance on exempt organizations to both Service personnel and the public. With few exceptions, the CL includes only those organizations that hold a ruling or determination letter that specifically states that contributions to the organization are tax deductible.
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Exempt organizations have become increasingly dependent upon their listings in the CL to prove to potential contributors that contributions to them are deductible. The fact that an organization may hold a favorable determination letter is often not sufficient to satisfy some contributors, especially in those cases where the Service issued an organization's letter several years ago.
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Generally, the CL has been effective in identifying IRC 170 organizations. However, as with any computer-generated listing, it is only as good as the data extracted. Therefore, it is imperative that the EO entity data contained on the BMF be accurate. Initiate corrections to any errors identified on the Master File; see IRM 21.3.8.3.8(1)c..
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"About This Book" on the inside cover and the "Preface" of the CL provide an explanation of the contents, format, etc. and provide procedures for inquirers to request changes.
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The Government Printing Office (GPO) prints and distributes the complete CL to thousands of subscribers and IRS offices every year.
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Quarterly cumulative supplements to the CL are extracted in December, March and June and contain new additions and name changes. Other changes are reflected in the complete annual report extracted at the end of September.
Note:
The CL may also be researched at the IRS Web Site at http:www.irs.gov/charities/page/0,,id=15053,00.html .
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Information on ordering Publication 78 can be found on the TE/GE Research Portal (IRS Toll Free Numbers) and on the Charities and Non-Profits page of the IRS Web site.
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See IRM 7.25.1.1.1, Exempt Organizations Determinations Manual - Introduction, Cumulative List (Publication 78), for additional information.
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Do not refer a customer directly to Headquarters employees for issues relating to Pub 78 under any circumstances.
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Omissions to Pub. 78 may be due to a Service error or an error on the part of the organization. When contact is received regarding an organization’s omission from Pub. 78, consider the following questions:
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Should the organization actually be listed in Pub. 78? Pub. 78 not only contains a list of organizations described in section 170(c) of the IRC, it also contains the names of some well known religious denominations, even though these denominations do not have a group ruling. Many of their member churches may not have obtained individual exemption rulings (e.g., Greek Orthodox Archdiocese of N. and S. America and Affiliated Organizations). Similarly, local components or chapters of the Salvation Army and the American National Red Cross generally have not obtained individual exemption rulings, but Pub. 78 contains generic listings for "Salvation Army and Its Components" and "American National Red Cross and Its Constituent Chapters and Branches." There are specific C letters which may be sent to local chapters of the Salvation Army ( Letter 4206C) and the American National Red Cross ( Letter 4205C).
Note:
Subordinates in a group ruling are generally not listed in Pub. 78.
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Is the determination relatively recent?
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Has the organization received a letter of exemption?
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Is it an organization to which contributions are considered deductible under IRC section 170?
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What EO information is found on the Master File (MF)?
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Is there an indication the omission from Pub. 78 is the result of the organization’s failure to do something? (For example, status 20, 21, 32; no application filed; application closed FTE; failure to file returns/respond to notices.) If so, take the appropriate action to resolve that issue.
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When it’s a Service Error:
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Various Service errors may prevent an organization from posting to Pub. 78. Each omission must be considered on a case–by–case basis.
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The most prevalent Service error is when a determination case was closed favorably on EDS/TEDS, but the record did not roll to MF.
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If the omission was due to a Service Error, take the following steps:
Step Action 1 Advise the caller that the organization will be added to the addendum within 30 days as an interim until its information can be added to the master listing. 2 Take the appropriate steps to make sure the MF record is updated, see IRM 21.3.8.3.8(1)c. 3 If the Service error is not the result of an EDS/TEDS No-Roll (e.g., CUM-LST-IND not entered), make the correction. Once MF has been corrected:
1- Make a copy of the adjustment document, and an INOLES print.
2- Annotate "ADD TO PUB 78 ADDENDUM DUE TO SERVICE ERROR (NOT A NO-ROLL)" on the INOLES print along with the date of the customer contact.
3- Forward the print to your team manager.
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The addendum listing may be viewed at the IRS Web Site at http://www.irs.gov/charities/article/0,,id=96291,00.html.
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When it’s a Non-Service Error:
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If the omission was due to a non-Service error, the organization may be added to the next Pub. 78 quarterly master update.
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If the organization failed to respond to a notice or did not provide us with a current address and was placed in status 21, it will not be added to the Pub. 78 addendum unless a Service error has occurred. In this situation, the normal process must be followed, which will involve manually updating Master File, which in turn allows the organization to appear in the next quarterly extract.
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Consider normal cycle times when determining whether to add an organization to the Pub 78 addendum. The on-line information is updated quarterly, October, January, April, and July, usually the first week of the month.
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All transactions must be posted in order for the organization to be picked up in the Pub. 78 extract. Manual input transactions take roughly 2 cycles to post. Normally, EDS/TEDS roll-overs take 1 cycle to post. The 1 cycle time-frame for EDS/TEDS closures is based on the date the data is rolled off EDS/TEDS and not the case closed date. The actual "roll" date can be determined from the date indicated on the EDS/TEDS case history screen (F6), which reflects the action "MF Cls Posted."
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If a case is closed on EDS/TEDS, or if a manual transaction is entered too late to make the cycle cutoff, the organization will not appear in the on-line Pub. 78 until the following quarter’s extract. This is normal processing and does not constitute Service error.
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The on line Exempt Organizations Master File (EOMF) is a publicly-available segment of IDRS data on the Charities & Non-Profits page of irs.gov. Callers can access it by typing "Master File" in the search window.
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The on line EOMF shows certain information about exempt organizations in statuses 01, 02, 23, 24, 25 and 32. It is extracted/updated monthly. If an organization has had any Master File changes after the data was extracted from IDRS, the new information will not be reflected in the on line EOMF until the following update. The on line EOMF is accompanied by instruction files that define the fields and explain the codes used for the organizations contained in the extract.
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Many grantors rely on the information contained in the on line EOMF to determine the eligibility of their applicants. The IRS cannot control how grantors and contributors use these data. It is not a Service error if an organization fails to receive a grant because it is not included in the on line EOMF, or because some of the information contained therein is out-of-date. Possession of a valid determination letter is the ultimate legal proof of tax exempt status.
Note:
Section 3.01 of Notice 2006–109provides, in part, that "[u]ntil further guidance is issued, for purposes of sections 4942, 4945, and 4946 (as applicable) a grantor, acting in good faith, may rely on information from the IRS Business Master File ("BMF" ) or the grantee's current IRS letter recognizing the grantee as exempt from federal income tax and indicating the grantee's public charity classification in determining whether the grantee is a public charity under section 509(a)(1), (2), or (3)." Section 3.01 of Notice 2006–109has separate requirements for grantors to determine whether a grantee is a Type I, Type II, or functionally integrated Type III supporting organization.
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Do not refer a customer directly to Headquarters employees for issues relating to the online EOMF and/or Pub 78 under any circumstances.
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When a customer calls due to omission from online EOMF:
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Research the Master File to verify whether INOLES reflects an EO submodule.
IF THEN INOLES reflects an EO submodule Skip to c) below INOLES reflects no EO submodule Continue to b) below -
Research EDS/TEDS to determine whether there is a closed case reflecting favorable exempt recognition.
IF THEN There is a favorable exemption ruling on EDS/TEDS that did not "roll" to the Master File
1. Confirm exempt recognition with the customer.
2. Apologize to the customer for "Service Error" .
3. Advise customer the online information is updated monthly, and due to processing time it may take up to 2 months for the organization to be reflected on the list.
4. Offer an affirmation letter.
5. See IRM 21.3.8.3.8(1)c, for guidance on correcting the EO submodule.There is no favorable exemption ruling on EDS/TEDS 1. Verify disclosure and respond to the customer appropriately (such as, "there is no record…" ). -
Verify the EO submodule on INOLES reflects favorable tax exempt status.
IF THEN The status code reflects "favorable EO status" 1. Confirm that our records currently reflect exempt recognition.
2. Advise customer it is possible the account was updated after the current data was posted on the Web, or the grantor may not be using the most current data.
3. Advise customer the online information is updated monthly, so if their information does not currently appear, due to processing time, it may take up to 2 months for the organization to be reflected on the list.
4. Offer an affirmation letter.The status code reflects other than "favorable EO status" (such as status 20/21, 71, etc.) 1. Verify disclosure and respond to the customer appropriately.
2. If caller is authorized, also address any other outstanding issues (old ARED, address, etc.)
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The following sections deal with information related to group rulings.
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The procedure for applying for a group ruling is outlined in Rev. Proc. 80–27(modified in Rev. Proc. 96–40).
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Additional information can be found in Publication 557 and Publication 4573.
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An organization that has one or more subordinates under its general supervision or control is referred to as a central organization.
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The central organization has a separate EIN and is identified by an Affiliation Code 6 (central organization of a group ruling - not a church) or 8 (central organization of a church group ruling).
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The central organization of the group receives the exemption ruling and members or subordinates of the group are included as the central organization determines their eligibility. Frequently subordinate entities and the central organization have the same name, identified by the presence of a chapter name or local number. The subordinate is identified by an Affiliation Code of 7 or 9 on CC INOLES.
Note:
The central organization is responsible for providing written affirmation of the inclusion of a subordinate in its group ruling. TE/GE telephone assistors cannot issue any affirmation letters on behalf of subordinates, although they may verbally affirm an exemption shown on IDRS.
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A central organization files one Form 990 for itself based on the income and expenses of only the central organization. It may also file a separate group return for its subordinates that includes all of the income and expenses for its affiliates that elect to be included on a group return.
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A group return entity has its own EIN, which is a dummy EIN used to file the group return. The group return entity is identified by a Form 990 filing requirement of 3 and the words "group return" added to the organization’s name.
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A chapter, local, post, or unit of a central organization is referred to as a subordinate organization.
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A subordinate is identified on Master File by:
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Affiliation Code 7, intermediate central organization — subordinate by state; or
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Affiliation Code 9, subordinate of a group ruling.
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A subordinate may choose to file as part of a group return or may file a separate return.
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Every year, each subordinate must authorize the central organization in writing to include it in the group return
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A subordinate that is organized and operated in a foreign country may not be included in a group exemption.
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To maintain a group exemption letter, central organizations (except churches) are required to provide an annual listing of their subordinates to OSPC. To assist with this process, an annual "List of Parent and Subsidiary Accounts" is sent to the central organization six months prior to the end of the central organization's accounting period. A suspense copy of this listing is maintained in the Entity Control unit at OSPC for one year.
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This list contains the EIN, name, address, group exemption number and filing requirement of the central organization and the EIN, name, address, filing requirement and status (active or inactive) of each subordinate.
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All organizations that have received a group ruling must submit their SGRI listing to the OSPC at least 90 days before the end of their accounting period. See Publication 1162, Group Exemption Procedures.
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Once a reply is received, any account identified for correction by the central organization is updated.
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If the organization doesn't respond, its group ruling is dissolved (Status 29).
Note:
Only Ogden has the authority to take an organization out of Status 29.
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If a central organization wishes to add a subordinate to its exemption after submitting its annual listing, see IRM 21.3.8.12.15.5, Adding Subordinates to a GEN.
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Currently, a central church (AFFLTN-CD 8) with a group ruling is neither issued nor required to supply an annual SGRI. However, if a central church organization submits its own listing to OSPC, subordinates’ accounts will be established/corrected on Master File as long as the central organization provides complete information. See IRM 21.3.8.12.14.5, Adding Subordinates to a GEN.
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The following guidelines are used by OSPC when updating SGRI's for church- affiliated accounts (see IRM 3.13.12):
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Make changes to the central organization's entity as indicated by the SGRI.
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If a name change to a subordinate is indicated by the SGRI, research to determine if the subordinate is established on the BMF. If the subordinate is on the BMF, make the necessary changes. If the subordinate is not on the BMF, take no action.
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After all changes have been made, OSPC issues a 3064C letter to the central organization indicating that our records have been changed, and because the organization is a church, it is not required to submit a Parent and Subsidiary Account listing in the future.
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If a central church organization wishes to add a subordinate to its group ruling independent of submitting its annual listing, see IRM 21.3.8.12.15.5, Adding Subordinates to a GEN.
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A central organization may choose, at any time, to add a subordinate to its group exemption. In order to add a subordinate, the central organization must fax or mail a letter on the central organization’s letterhead stating its desire to have the subordinate added. The letter must include the following:
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Central organization’s four-digit GEN
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Subordinate’s name, address and EIN
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Signature of an authorized central organization officer (or local Cooperative Extension Service for 4-H Clubs)
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The effective date for the subordinates' inclusion in the group ruling
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Send the request to add one or more subordinates to:
IRS
Attn. EO Entity
Mail Stop 6273
Ogden, UT 84201
or
Fax: 801-620-3263 -
Exceptions for adding subordinates:
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Salvation Army - If the name reflects a chapter of the Salvation Army, prepare Letter 4206C (Salvation Army Letter). Do not add an EO submodule to the "subordinate" .
Note:
If the caller is requesting verbal affirmation of the exemption of a Salvation Army unit and does not have the entity's EIN, it may not be necessary to identify the specific entity on IDRS. Explain to the caller that all components of the Salvation Army are included in their special ruling.
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American National Red Cross - If the name reflects a chapter of the American National Red Cross, prepare Letter 4205C (Red Cross Letter). Do not add an EO submodule to the "subordinate" .
Note:
If the caller is requesting verbal affirmation of the exemption of an American National Red Cross unit and does not have the entity's EIN, it may not be necessary to identify the specific entity on IDRS. Explain to the caller that all components of the American National Red Cross are included in their special ruling.
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4-H Clubs & Affiliates - If the name reflects a 4-H Club or Affiliate, the 4-H Club or Affiliate needs a letter from its local Cooperative Extension Service, not the central organization, stating the desire to have the subordinate added. The letter must include the information required in (1) above.
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If a call is received from the subordinate organization itself (and IDRS does not reflect that it is included in the group ruling), instruct the caller to have the central organization provide the information listed above.
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If a call is received from a subordinate organization that has undergone a name change, instruct the caller to mail the appropriate name change documentation directly to EO Entity in Ogden. For additional information on required documentation, refer to IRM 21.3.8.9.2.
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If a call is received from a subordinate organization that has undergone an address change (and you are unable to make the adjustment to IDRS yourself), instruct the caller to mail the information directly to EO Entity in Ogden. The correct mailing address for EO Entity is:
Internal Revenue Service
EO Entity Mail Stop 6273
Ogden, UT 84201 -
The information may also be faxed to 801-620-3263.
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Based on the information provided, EO Entity makes the necessary updates to IDRS, but no letter will be issued to either the central organization or to the subordinate(s).
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Advise subordinate to inform the central organization of its name and/or address change if it has not already done so.
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The LITC Grant Program awards matching funds to qualifying organizations that represent low income taxpayers involved in controversies with the Internal Revenue Service (IRS) or that provide tax education and outreach to taxpayers who speak English as a second language (ESL) on their taxpayer rights and responsibilities. Qualifying clinics may not charge more than a nominal fee for their services.
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The Taxpayer Advocate Service administers the LITC Program. Those wishing information on the LITC Grant Program can request information at LITCProgramOffice@irs.gov., or they can write to the IRS, LITC Program Office at the following address:
Internal Revenue Service
Taxpayer Advocate Service
LITC Program Office
TA:LITC
1111 Constitution Ave., NW
Room 1034
Washington, DC 20224
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The following exempt organization returns can be filed electronically through an approved IRS 990 e-file provider:
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Form 990
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Form 990-EZ
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Form 990-PF
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Form 8868
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Form 1120-POL
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Form 7004
Note:
Many states also allow exempt organizations to file their returns with them through this program.
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Updated information about which forms, tax years, and schedules are acceptable for (and those excluded from) e-filing can be found in Publication 4164, Modernized e-File (MeF) Guide for Software Developers and Transmitters.
Note:
This publication is only available online.
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Current approved IRS e-file providers are listed on www.irs.gov. Advise callers to click on the e-file logo at the bottom left of the home page.
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A Web page on irs.gov provides transmitters with updated operational status information for MeF users. The page provides updates when there is a change that impacts transmitters for more than an hour during peak. Information on the normal maintenance window is also available on this page. Transmitters who encounter problems can check the Web status by typing "e-file status" in the search window.
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While all charities and non-profits are encouraged to take advantage of the many benefits of electronic filing, certain exempt organizations are required to file their return electronically. For tax years ending on or after December 31, 2006, exempt organizations with $10 million or more in total assets are required to file their return electronically if they also file at least 250 returns in a calendar year, including income, excise, employment tax, and information returns, e.g. Forms 941, Forms W-2, Forms 1098.
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Private foundations and non-exempt charitable trusts that are treated as private foundations are required to file Forms 990-PF electronically regardless of their assets if they file at least 250 returns annually.
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Notice 2005-88 establishes criteria under which exempt organizations can request a waiver from the electronic filing requirement:
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Where the exempt organization cannot meet electronic filing requirements due to technology constraints; or
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Where compliance with the requirements would result in undue financial burden on the filer.
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