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Part 7. Rulings and Agreements

Chapter 21. Exempt Organizations Automated Processing Procedures

Section 5. Letter Generation

7.21.5  Letter Generation

7.21.5.1  (01-01-2003)
Overview

  1. Procedures are provided on the Letter Generation System and the options available to its users.

  2. Most letters and paragraphs approved for nationwide use (to develop and close cases) are included on the letter text (It) file for the letter generation subsystem. The letter text file operates on the concept of letter and paragraph numbers.

  3. Each letter consists of one or more of the following four types of paragraphs:

    • Automatic paragraphs

    • Required paragraphs

    • Selective paragraphs

    • Customized paragraphs

7.21.5.2  (01-01-2003)
Specific Instructions

  1. These instructions are for the Exempt Organizations specialist preparing a letter to the applicant in response to information received, request for additional information or final determination.

7.21.5.2.1  (01-01-2003)
Automatic Paragraphs

  1. These paragraphs must be included in the letter and are automatically printed. They appear on the screen for reference and are not entered.

7.21.5.2.2  (01-01-2003)
Required Paragraphs

  1. These paragraphs must be included in the letter, the specialist must enter the paragraph number(s) on the Create-Letter-Screen and type in the appropriate variable information (fill-ins), which is limited to 20 characters of alpha-numeric data.

  2. Required paragraph numbers are automatically displayed at the bottom of the Create-Letter-Screen and the user can not complete the creation of the letter without entering these paragraphs.

7.21.5.2.3  (01-01-2003)
Selective Paragraphs

  1. These paragraphs are not required in the letter, the specialist must enter the appropriate number(s) on the Create-Letter-Screen. Some selective paragraphs are printed in the body of the letter (see letter exhibits).

  2. Paragraphs numbered in series 100 through 2999 and 7000 through 7999 are printed as an enclosure to the letter in the order entered on the Create-Letter-Screen.

    1. The system does not prompt the user in the use of these paragraphs. If a selected paragraph requires variable information, the user cannot complete the letter without entering data in the field next to the paragraph number on the Create-Letter-Screen.

    2. The variable entered is limited to 20 characters.

7.21.5.2.4  (01-01-2003)
Customized Paragraphs

  1. These are individually developed paragraphs that must be typed by the specialist. Customized paragraphs are printed as an enclosure to the letter in the order entered on the Create-Letter-Screen.

  2. To customize paragraphs, the specialist must enter paragraph number(s) in the range of 9000–9999.

    1. This will bring up the screen on which the customized paragraph is typed.

    2. These paragraphs are limited to ten lines of text with no more than 80 characters per line.

    3. The paragraphs can be connected by using consecutively numbered paragraphs (e.g., 9001, 9002, 9003, etc.).

    4. If space is desired between paragraphs, the first line of each paragraph must be blank with text starting on the second line. The system compensates for blank lines at the end of these paragraphs, so leaving a blank line at the end of paragraph 9000 (for example) will not create a space between paragraphs 9000 and 9001.

7.21.5.3  (01-01-2003)
Letter Text

  1. Each area office is allotted ten (10) paragraphs on the letter text for EO development letters to advise applicants where to send the requested information. This feature is intended to promote prompt association of responses with case files by directing the mail to the specific group or post of duty address.

  2. These paragraphs are numbered from 3000 to 3099 and are either automatic or selective paragraphs, which are printed in the body of the letter.

  3. The area office will add the language within the parameters on the letter text and provide the users with the numbers that are appropriate for the addresses added to the text.

  4. The language which must be used for each paragraph added is as follows:

    Please mail the information requested in this letter to the following address....”

  5. The letter text file also provides space for up to 1,000 additional paragraphs per letter number (paragraphs 7,000 through 7,999) which can be included, by selection, in the letters on the letter text file.

    1. This feature is designed to accommodate the current IRM provisions which allow area offices to print up to four months supply of letters and use them while simultaneously requesting Headquarters approval of the language.

    2. These paragraphs are also printed on an enclosure in the order entered on the Create-Letter Screen. The aea office must identifying the use for these paragraphs.

7.21.5.3.1  (01-01-2003)
Entity Information

  1. Entity information is automatically transferred from DTS to the letter generation subsystem. If entity information for a case is not present, it must be entered on the letter generation subsystem before a letter can be created for the entity. See instructions in the Exempt Organizations EDS User Manual.

7.21.5.3.2  (01-01-2003)
Signature

  1. All letters must contain a signature. Rubber (facsimile) stamps may be used for closing letters, which in most instances must be issued with the signature of the Director, Exempt Organizations.

7.21.5.4  (01-01-2003)
Development Letters

  1. In developing EO cases, the nature of the case dictates the letter to be used for requesting additional information. Before creating the letter, the user must follow the instructions in the Exempt Organizations EDS User Manual for creating or accessing the entity information.

7.21.5.4.1  (01-01-2003)
Letters for Open Cases

  1. For open cases, the appropriate letters are as follows:

    1. Letter 1312(DO/CG) — First request for additional information for cases received on Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code.

    2. Letter 1313(DO/CG) — First request for additional information for cases received on Form 1024, Application for Recognition of Exemption Under Section 501(a) or Determination Under Section 120.

    3. Letter 2386(DO/CG) — First request for additional information for cases received on Form 1028, Application for Recognition of Exemption Under Section 521 of the Internal Revenue Code.

    4. Letter 2384(DO/CG) — First request for additional information for IRC 501(c)(9) organizations.

    5. Letter 2382(DO/CG) — Second and subsequent requests for additional information. Can be used with any type of application when the response to the first request for information is inadequate.

    6. Letter 1209(DO/CG) — Development letter to organizations applying under incorrect code section.

7.21.5.4.2  (01-01-2003)
Follow-up Letters

  1. For follow-up action on existing organizations, the appropriate letters are as follows:

    1. Letter 1046(DO/CG) — follow-up after an advance ruling of foundation status;

    2. Letter 2381(DO/CG) — amendment, legal entities, and,

    3. Letter 1037(DO/CG) — development letter concerning possible termination.

7.21.5.4.3  (01-01-2003)
Pattern Paragraphs

  1. Pattern paragraphs covering a large number of issues are available in the series 100 through 2999. If there is no appropriate computerized paragraph, or if there is a need to expand on a computerized paragraph, the specialist must type (customize) the appropriate 9000 series paragraph.

  2. Because the paragraphs will print in the order in which they are entered on the Create-Letter-Screen, 9000 paragraphs can also be used to expand on computerized paragraphs in series 100 through 2999 and 7000 through 7999. See Section 5.2.4, above, and the Exempt Organizations EDS User Manual for specific instructions on the use of 9000 series paragraphs.

7.21.5.4.4  (01-01-2003)
Other EO Letters

  1. Other EO letters can be created through the letter generation subsystem. The letters, with instructions, are included in this Manual as exhibits. A complete list of the letters, by description, letter numbers and exhibit numbers are reflected in Exhibit 7.21.5–1.

  2. The letter is printed in two parts; the cover letter and the enclosure. Paragraphs specifying the information needed will be printed after the enclosure.

Exhibit 7.21.5-1  (01-01-2003)
Computer Generated (DO/CG) Letters

Description Letter Number Exhibit Number
Favorable letter 501(c)(3) and 509(a)(1), [including 170(b)(1)(A)(i) through (vi)], 509(a)(2), or 509(a)(3). 947(DO/CG) 7.21.5-2
Favorable letter all paragraphs of 501(c) except (3). 948(DO/CG) 7.21.5-3
Favorable letter for Farmers’ Cooperative under 521. 949(DO/CG) 7.21.5-4
Reinstatement of exempt status. 974(DO/CG) 7.21.5-5
Notice to parent organization when subordinate is terminated. 975(DO/CG) 7.21.5-6
Approval of amendments/change in operation. 976(DO/CG) 7.21.5-7
Development letter after organization files a return. 993(DO/CG) 7.21.5-8
Acknowledgment of receipt of application/notice of referral to Headquarters. 996(DO/CG) 7.21.5-9
Notice of income tax filing requirement after no response to prior Letter 993(DO/CG) 1034(DO/CG) 7.21.5–10
Follow-up on request for verification of exemption or filing of application. 1035(DO/CG) 7.21.5-11
Development—possible termination. 1037(DO/CG) 7.21.5-12
Incomplete Letter 1042(DO/CG) 7.21.5-13
Favorable letter 501(c)(3) and advance ruling on foundation status under 509(a). 1045(DO/CG) 7.21.5-14
Follow-up after expiration of advance ruling given by 1045 (DO/CG) letter. 1046(DO/CG) 7.21.5-15
Presumption of private foundation status after no response to follow-up 1046(DO/CG). 1048(DO/CG) 7.21.5-16
Favorable letter on foundation status—509(a)(1), 509(a)(2), or 509(a)(3) after response to follow-up 1046(DO/CG). 1050(DO/CG) 7.21.5-17
Favorable letter under 501(c)(3) and advance ruling on foundation status; org. not eligible for a definitive ruling. 1051(DO/CG) 7.21.5-18
Favorable letter under 509(a)(3) for a NECT 1071(DO/CG) 7.21.5–19
Favorable letter of private operating foundation under 4942(j)(3) 1075(DO/CG) 7.21.5.20
Favorable letter of non-operating private foundation. 1076(DO/CG) 7.21.5.21
Favorable letter of private operating foundation status under 4942(j)(3) after receipt of Form 4653. 1077(DO/CG) 7.21.5-22
Favorable letter of non-private foundation status under 509(a)(1), 509(a)(2), or 509(a)(3) after presumption of PF status or receipt of Form 4653. 1078(DO/CG) 7.21.5-23
Favorable letter under 501(c)(3) and adverse ruling on foundation status; org. is a PF. 1079(DO/CG) 7.21.5-24
Favorable letter under 501(c)(3) and adverse ruling on 4942(j)(3) status. 1080(DO/CG) 7.21.5-25
Favorable letter under 501(c)(3) and presumption of PF status after no response. 1081(DO/CG) 7.21.5-26
Notice of transfer of case to correct KD. 1160(DO/CG) 7.21.5-27
Favorable letter under 501(c)(3) for org. with IRC 508(a) effective date problem. 1194(DO/CG) 7.21.5-28
Development-org. is already exempt or under a group ruling. 1308(DO/CG) 7.21.5-29
Development-organization applying under incorrect section of IRC. 1309(DO/CG) 7.21.5-30
Proposed adverse —no response to Letter 1309(DO/CG) 1310(DO/CG) 7.21.5-31
Development letter for EO applications on Form 1023 1312(DO/CG) 7.21.5-32
Development letter for EO applications on Form 1024 1313(DO/CG) 7.21.5-33
Failure to establish exempt status adverse—501(c)(3) after no response to Letter 1312(DO/CG) 1314(DO/CG) 7.21.5-31
Failure to establish exempt status adverse—501(c) [except (3)] after no response to Letter 1313(DO/CG) or Letter 2384(DO/CG) 1315(DO/CG) 7.21.5-32
Proposed adverse letter (denial) after no response 1316(DO/CG) 7.21.5-33
Technical Advice Request Notice to Taxpayer 1399(DO/CG) 7.21.5-34
Modification letter extending an initial 2 or 3 year advance ruling period under 509(a) to 5 years 2171(DO/CG) 7.21.5-35
Modification letter of foundation status from IRC 509(a)(2) to 509(a)(2) 2240(DO/CG) 7.21.5-36
Private Foundation determination letter after advance ruling period ends 2241(DO/CG) 7.21.5-37
Termination letter 2242(DO/CG) 7.21.5-38
Private Foundation determination letter after no public support during advance ruling 2243(DO/CG) 7.21.5-39
Withdrawal letter 2244(DO/CG) 7.21.5-43
Advance ruling under IRC 507(b)(1)(B)—Termination of Private Foundation status 2245(DO/CG) 7.21.5-44
Favorable determination letter for 501(c)(9), (17), or (20) Organization with 505(c) effective date problem 2285(DO/CG) 7.21.5-45
Letter granting extension of time to submit info (User Fees) 2337(DO/CG) 7.21.5-46
Amendment—Legal Entities letter 2381(DO/CG) 7.21.5-47
Second request for additional information 2382(DO/CG) 7.21.5-48
Second request for additional information to Letter 1046 2383(DO/CG) 7.21.5-49
501(c)(9) Development letter 2384(DO/CG) 7.21.5-50
Failure to establish exempt status adverse—521 after no response to Letter 2386(DO/CG) 2385(DO/CG) 7.21.5-51
Development letter for EO applications on Form 1028 2386(DO/CG) 7.21.5-52
EO paragraphs for Group Exemptions 2419 (DO/CG) 7.21.5-53
EO Failure to Establish—Adverse letter 501(c)(3)—Church 2435(DO/CG) 7.21.5-54

Exhibit 7.21.5-2  (01-01-2003)
Letter 947 (DO/CG)
EO Favorable Determination Letter 501(c)(3)/509(a)(1)–(4)

EDS
Paragraph
Numbers 		Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1
(Automatic) 		 Based on information supplied, and assuming your operations will be as stated in your application for recognition of exemption, we have determined you are exempt from federal income tax under section 501(a) of the Internal Revenue Code as an organization described in section 501(c)(3).
 2
(Selective) 		 We have further determined that you are not a private foundation within the meaning of section 509(a) of the Code, because you are an organization described in sections 509(a)(1) and 170(b)(1)(A)(i).
 3
(Selective) 		 We have further determined that you are not a private foundation within the meaning of section 509(a) of the Code, because you are an organization described in sections 509(a)(1) and 170(b)(1)(A)(ii).
 4
(Selective) 		 We have further determined that you are not a private foundation within the meaning of section 509(a) of the Code, because you are an organization described in sections 509(a)(1) and 170(b)(1)(A)(iii).
 5
(Selective) 		 We have further determined that you are not a private foundation within the meaning of section 509(a) of the Code, because you are an organization described in sections 509(a)(1) and 170(b)(1)(A)(iv).
 6
(Selective) 		 We have further determined that you are not a private foundation within the meaning of section 509(a) of the Code, because you are an organization described in sections 509(a)(1) and 170(b)(1)(A)(v).
 7
(Selective) 		 We have further determined that you are not a private foundation within the meaning of section 509(a) of the Code, because you are an organization described in sections 509(a)(1) and 170(b)(1)(A)(vi).
 8
(Selective) 		 We have further determined that you are not a private foundation within the meaning of section 509(a) of the Code, because you are an organization described in section 509(a)(2).
 9
(Selective) 		 We have further determined that you are not a private foundation within the meaning of section 509(a) of the Code, because you are an organization described in section 509(a)(3).
 10
(Selective) 		 We have further determined that you are not a private foundation within the meaning of section 509(a) of the Code, because you are an organization described in section 509(a)(4).
 13
(Automatic) 		 If your sources of support, or your purposes, character, or method of operation change, please let us know so we can consider the effect of the change on your exempt status and foundation status. In the case of an amendment to your organizational document or bylaws, please send us a copy of the amended document or bylaws. Also, you should inform us of all changes in your name or address.
 14
(Selective) 		 As of January 1, 1984, you are liable for taxes under the Federal Insurance Contributions Act (social security taxes) on remuneration of $100 or more you pay to each of your employees during a calendar year. This does not apply, however, if you make or have made a timely election under section 3121(w) of the Code to be exempt from such tax. You are not liable for the tax imposed under the Federal Unemployment Tax Act (FUTA).
 15
(Selective) 		 As of January 1, 1984, you are liable for taxes under the Federal Insurance Contributions Act (social security taxes) on remuneration of $100 or more you pay to each of your employees during a calendar year. You are not liable for the tax imposed under the Federal Unemployment Tax Act (FUTA).
 17
(Automatic) 		 Since you are not a private foundation, you are not subject to the excise taxes under Chapter 42 of the Code. However, if you are involved in an excess benefit transaction, that transaction might be subject to the excise taxes of section 4958. Additionally, you are not automatically exempt from other federal excise taxes. If you have any questions about excise, employment, or other Federal taxes, please contact your key district office.
 18
(Selective) 		 Grantors and contributors may rely on this determination unless the Internal Revenue Service publishes notice to the contrary. However, if you lose your section 509(a)(^) status, a grantor or contributor may not rely on this determination if he or she was in part responsible for, or was aware of, the act or failure to act, or the substantial or material change on the part of the organization that resulted in your loss of such status, or if he or she acquired knowledge that the Internal Revenue Service had given notice that you would no longer be classified as a section 509(a)(^) organization.
 19
(Automatic) 		 Donors may deduct contributions to you as provided in section 170 of the Code. Bequests, legacies, devises, transfers, or gifts to you or for your use are deductible for federal estate and gift tax purposes if they meet the applicable provisions of Code sections 2055, 2106, and 2522.
 20
(Automatic) 		 Contribution deductions are allowable to donors only to the extent that their contributions are gifts, with no consideration received. Ticket purchases and similar payments in conjunction with fundraising events may not necessarily qualify as deductible contributions, depending on the circumstances. See Revenue Ruling 67–246, published in Cumulative Bulletin 1967–2, on page 104, which sets forth guidelines regarding the deductibility, as charitable contributions, of payments made by taxpayers for admission to or other participation in fundraising activities for charity.
 21
(Automatic) 		 In the heading of this letter we have indicated whether you must file Form 990, Return of Organization Exempt From Income Tax. If Yes is indicated, you are required to file Form 990 only if your gross receipts each year are normally more than $25,000. However, if you receive a Form 990 package in the mail, please file the return even if you do not exceed the gross receipts test. If you are not required to file, simply attach the label provided, check the box in the heading to indicate that your annual gross receipts are normally $25,000 or less, and sign the return.
 22
(Automatic) 		 If a return is required, it must be filed by the 15th day of the fifth month after the end of your annual accounting period. A penalty of $20 a day is charged when a return is filed late, unless there is reasonable cause for the delay. However, the maximum penalty charged cannot exceed $10,000 or 5 percent of your gross receipts for the year, whichever is less. For organizations with gross receipts exceeding $1,000,000 in any year, the penalty is $100 per day per return, unless there is reasonable cause for the delay. The maximum penalty for an organization with gross receipts exceeding $1,000,000 shall not exceed $50,000. This penalty may also be charged if a
 23
(Automatic) 		return is not complete, so be sure your return is complete before you file it.
 24
(Automatic) 		 You are required to make your annual return available for public inspection for three years after the return is due. You are also required to make available a copy of your exemption application, any supporting documents, and this exemption letter. Failure to make these documents available for public inspection may subject you to a penalty of $20 per day for each day there is a failure to comply (up to a maximum of $10,000 in the case of an annual return).
 25
(Automatic) 		 You are not required to file federal income tax returns unless you are subject to the tax on unrelated business income under section 511 of the Code. If you are subject to this tax, you must file an income tax return on Form 990–T, Exempt Organization Business Income Tax Return. In this letter we are not determining whether any of your present or proposed activities are unrelated trade or business as defined in section 513 of the Code.
 26
(Automatic) 		 You need an employer identification number even if you have no employees. If an employer identification number was not entered on your application, a number will be assigned to you and you will be advised of it. Please use that number on all returns you file and in all correspondence with the Internal Revenue Service.
ADDITIONAL PARAGRAPHS
3201
(Selective) 		 Revenue Procedure 75–50, published in Cumulative Bulletin 1975–2 on page 587, sets forth guidelines and record keeping requirements for determining whether private schools have racially nondiscriminatory policies as to students. You must comply with this revenue procedure to maintain your tax-exempt status.
3203
(Selective) 		 You claimed to be an organization described in section 509(a)(1). The information you submitted, however, indicates that you receive a substantial part of your support in the form of gross receipts from admissions, sales of merchandise, performance of services, or furnishing of facilities, and from membership dues, gifts, grants, and contributions. Therefore, we have classified you as an organization described in section 509(a)(2) of the Code.
3205
(Selective) 		 You claimed to be an organization described in section 509(a)(2). The information you submitted, however, indicates that you receive a substantial part of your support in the form of gifts, grants, and contributions from the general public and/or from governmental units. Therefore, we have classified you as an organization described in sections 509(a)(1) and 170(b)(1)(A)(vi) of the Code.
3206
(Selective) 		 This ruling is based on the understanding that the majority of your Board of Directors will be non-salaried and will not be related to salaried personnel or to parties providing services. It is also based on the understanding that salaried individuals cannot vote on their own compensation and that compensation decisions will be made by the board.
3207
(Selective) 		 This ruling is based on the understanding that you will enter a formal agreement with the state regulatory agency to operate as a provider under the Special Nutrition Food Program and to operate that program within the state’s guidelines.
3208
(Selective) 		 As part of a continuing program, we periodically examine the operations of tax-exempt organizations. The purpose of this program is to determine whether the organizations are operating within the scope of the laws under which they are granted exemption. Therefore, you should keep information that would show that you are operating for section 501(c)(3) purposes. The information should include the training given to the child care providers, number of inspections, reports submitted to the state, and other pertinent information about your activities. You should also keep records of your income and your disbursements of funds.
3211
(Selective) 		 In accordance with section 508(a) of the Code, the effective date of this determination letter is [20V].
3213
(Selective) 		 Section 508(a)(2) of the Internal Revenue Code states that an organization organized after October 9, 1969, shall not be treated as an organization described in section 501(c)(3) for any period before giving notice that it is applying for recognition of exempt status, if such notice is given after the time prescribed in the regulations.
3215
(Selective) 		 Section 1.508–1(a)(2)(i) of the Income Tax Regulations states that an organization seeking exemption under section 501(c)(3) must file the notice described in section 508(a) within 15 months from the end of the month in which the organization was organized. This notice is filed by submitting a properly completed and signed Form 1023, exemption application, with the key District Director.
3217
(Selective) 		 Our records indicate that your notice was postmarked [20V], which is more than 15 months from the end of the month in which you were organized. Since the provisions of section 508(a)(2) apply to you, the effective date of your exemption is [20V]. Contributions made to you on or after this date are tax deductible.
3223
(Selective) 		 Based on information you supplied, we recognize you as exempt from federal income tax for the period [20V], your formation or incorporation
3224
(Selective) 		date, to [20V], your dissolution date. You are not required to file federal income tax returns for that period.
3233
(Selective) 		 This determination is based on evidence that your funds are dedicated to the purposes listed in section 501(c)(3) of the Code. To assure your continued exemption, you should keep records to show that funds are expended only for those purposes. If you distribute funds to other organizations, your records should show whether they are exempt under section 501(c)(3). In cases where the recipient organization is not exempt under section 501(c)(3), there should be evidence that the funds will remain dedicated to the required purposes and that they will be used for those purposes by the recipient.
3235
(Selective) 		 If distributions are made to individuals, case histories regarding the recipients should be kept showing names, addresses, purposes of awards, manner of selection, relationship (if any) to members, officers, trustees or donors of funds to you, so that any and all distributions made to individuals can be substantiated upon request by the Internal Revenue Service. (Revenue Ruling 56–304, C.B. 1956–2, page 306.)
3237
(Selective) 		 Evidence submitted with your application indicates that you may engage in lobbying activities. Section 501(c)(3) of the Code specifically prohibits lobbying as a substantial part of your activities. If you do not wish to be subject to the test of substantiality under section 501(c)(3), you may elect to be covered under the provisions of 501(h) of the Code by filing Form 5768, Election/Revocation of Election by an Eligible Section 501(c)(3) Organization to Make Expenditures to Influence Legislation. This section establishes ceiling amounts for lobbying expenditures.
3277  If you are a wholly-owned instrumentality of a state or a political subdivision of a state, wages paid for services performed for you are not subject to unemployment taxes under the Federal Unemployment Tax Act (FUTA) or to any portion of the social security taxes under the Federal Insurance Contributions Act (FICA). Wages of your employees hired after March 31, 1986 are subject to only the medicare portion of the social security tax. If you want full social security coverage for your employees, it may be obtained only by an agreement under section 218 of the Social Security Act between the state and the Secretary of Health and Human Services.
3278
(Selective) 		 Any questions you may have concerning your liability for FICA or FUTA taxes should be addressed to the Internal Revenue Service, Office of the Associate Chief Counsel (Employee Benefits and Exempt Organizations), CC:EBEO, Room 5213, P.O. Box 7604, Ben Franklin Station, Washington, D.C. 200044.
3341
(Selective) 		 If you do not agree with our determination, you may request consideration of this matter by the Office of Regional Director of Appeals. To do this, you should file a written appeal as explained in the enclosed Publication 892. Your appeal should give the facts, law, and any other information to support your position. If you want a hearing, please request it when you file your appeal and you will be contacted to arrange a date. The hearing may be held at the regional office, or, if you request, at any mutually convenient district office. If you will be represented by someone who is not one of your principal officers, that person will need to file a power of attorney or tax
3342
(Selective) 		information authorization with us.
3343
(Selective) 		 If you do not appeal this determination within 30 days from the date of this letter, as explained in Publication 892, this letter will become our final determination on this matter. Further, if you do not appeal this determination within the time provided, it will be considered by the Internal Revenue Service as a failure to exhaust available administrative remedies. Section 7428(b)(2) of the Code provides, in part, that, “A declaratory judgement or decree under this section shall not be issued in any proceeding unless the Tax Court, the Claims Court, or the district court of the United States for the District of Columbia determines that the organization involved has exhausted administrative
3344
(Selective) 		remedies available to it within the Internal Revenue Service.”
3345
(Selective) 		 If you do not appeal this determination of the effective date of exemption within 30 days from the date of this letter, it will be considered by the Internal Revenue Service as a failure to exhaust available administrative remedies. Section 7428(b)(2) of the Code provides, in part, that, "A declaratory judgement or decree under this section shall not be issued in any proceeding unless the Tax Court, the Claims Court, or the district court of the United States for the District of Columbia determines that the organization involved has exhausted administrative remedies available to it within the Internal Revenue Service."
3347
(Selective) 		 No further appeal is available within the Internal Revenue Service on the denial of your request for retroactive relief under section 1.9100 of the regulations regarding the effective date of your exemption. You may still take advantage, however, of the declaratory judgment rights as described in the enclosed Publication 892.
7750
(Selective) 		 You are not subject to the specific publishing requirements of Revenue Procedure 75-50, 1975-2 C.B., page 587, as long as you are operating under a contract with the local government. If your method of operation changes to the extent that your charter is terminated, cancelled, or not renewed, you should notify us. You will also be required to comply with Revenue Procedure 75-50.
7751
(Selective) 		 You are not subject to the specific publishing requirements of Revenue Procedure 75-50, 1975-2 C.B., page 587, as long as you are operating under a contract with the local government. If your method of operation changes to the extent that your charter is terminated, not approved, cancelled, or not renewed, you should notify us. You will also be required to comply with Revenue Procedure 75-50.
3348
(Selective) 		 If you agree with the determination, please sign and return the enclosed Form 6018 as soon as possible.
5997
(Automatic) 		 If we have indicated in the heading of this letter that an addendum applies, the enclosed addendum is an integral part of this letter. Because this letter could help resolve any questions about your exempt status and foundation status, you should keep it in your permanent records.
5998
(Selective) 		 We have sent a copy of this letter to your representative as indicated in your power of attorney.
5999  If you have any questions, please contact the person whose name and telephone number are shown in the heading of this letter.
(Automatic) Sincerely yours,
8500
(Automatic) 		Director, Exempt Organizations
8010
(Required) 		Accounting Period Ending:
[20V]
8011
(Required) 		Form 990 Required:
[20 V]
8012
(Required) 		Addendum Applies:
[20V]
8610
(Selective) 		Enclosure(s):
8620
(Selective) 		Form 6018
8630
(Selective) 		Addendum

Exhibit 7.21.5-3  (01-01-2003)
Letter 948 (DO/CG)
EO Favorable Determination Letter All 501(c) Except (3)

EDS
Paragraph
Numbers 		Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1
(Automatic) 		 Based on information supplied, and assuming your operations will be as stated in your application for recognition of exemption, we have determined you are exempt from Federal income tax under section 501(a) of the Internal Revenue Code as an organization described in the section indicated above.
 3
(Automatic) 		 Unless specifically excepted, you are liable for taxes under the Federal Insurance Contributions Act (social security taxes) for each employee to whom you pay $100 or more during a calendar year. And, unless excepted, you are also liable for tax under the Federal Unemployment Tax Act for each employee to whom you pay $50 or more during a calendar quarter if, during the current or preceding calendar year, you had one or more employees at any time in each of 20 calendar weeks or you paid wages of $1,500 or more in any calendar quarter. If you have any questions about excise, employment, or other Federal taxes, please address them to this office.
 5
(Automatic) 		 If your sources of support, or your purposes, character, or method of operation change, please let us know so we can consider the effect of the change on your exempt status. In the case of an amendment to your organizational document or bylaws, please send us a copy of the amended document or bylaws. Also, you should inform us of all changes in your name or address.
 7
(Automatic) 		 In t