7.21.5  Letter Generation (Cont. 1)

Exhibit 7.21.5-21  (01-01-2003)
Letter 1076 (DO/CG)
EO Favorable Determination Letter to a Non-Operating Private Foundation

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).
 3  We have further determined that, as indicated in your application, you are a private foundation within the meaning of section 509(a) of the Code. In this letter we are not determining whether you are an operating foundation as defined in section 4942(j)(3).
(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
 5 amended document or bylaws. Also, you should inform us of all changes in your name or address.
(Automatic)  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). However, since you are a private foundation, you are subject to excise taxes under chapter 42 of the Code. You also may be subject to other Federal excise taxes. If you have any questions about excise, employment, or other Federal
 7 taxes, please let us know.
(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 sections 2055, 2106, and 2522 of the Code.
 8
(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.
 9
(Automatic)
 You are required to file Form 990–PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as a Private Foundation. Form 990–PF 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
 10
(Automatic)
receipts exceeding $1,000,000 shall not exceed $50,000. This penalty may also be charged if a return is not complete, so please be sure your return is complete before you file it.
 11
(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.
 12
(Automatic)
 You are required to make your annual return available for public inspection within 180 days after the date of publication of its availability, and you must publish the notice of availability no later than the date required for filing the return. 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).
 13
(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.
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. Such notice is filed by submitting a properly completed and executed 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) are applicable 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 maintain 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 section 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. Section 501(h) establishes ceiling amounts for lobbying expenditures.
3239  We considered your grant-making procedures under section 4945(g) of the Code. Based on the information submitted and assuming your scholarship program will be conducted as proposed with objectivity and nondiscrimination in awarding grants, we determined that your procedures in awarding scholarship grants comply with the requirements of section 4945(g)(1), and that scholarships granted according to these procedures will not be "taxable expenditures" within the meaning of section 4945(d)(3).
(Selective)  This determination is conditioned on the understanding that there will be
3240
(Selective)
no material change in the facts upon which it is based. It is further conditioned on the premise that no grants will be awarded to the trust’s creators, trustees, or members of the selection committee, or for a purpose that is inconsistent with the purposes described in section 170(c)(2)(B). The approval of your grant-making procedures is a one-time approval of your system of standards and procedures that will result in grants that meet the requirements of section 4945(g)(1). Thus, approval will apply to succeeding grant programs only as long as the standards and procedures under which they are conducted do not differ materially from those described in your request.
3241
(Selective)
 We have not considered whether grants made under your procedures are excludable from the gross income of recipients under section 117(a) of the Code. Any funds you distribute to individuals must be made on a true charitable basis to further the purposes for which you are organized. Therefore, you should maintain adequate records and case histories so that all grant distributions can be substantiated upon request by the Internal Revenue Service.
3243  Rev. Proc. 76–47, 1976–2 C.B. 670, sets forth guidelines to be used in determining whether a grant made by a private foundation under an employer-related program to a child of an employee of the particular employer to which the program relates is a scholarship grant that meets the provisions of section 117(a) of the Code (as that section read before the Tax Reform Act of 1986).
(Selective)  If a private foundation’s program satisfies the seven conditions set forth in Sections 4.01 through 4.07 of Rev. Proc. 76–47 and meets the percentage test described in Section 4.08, the Service will assume the grants meet the provisions of section 117(a), as that section read before the Tax Reform Act of 1986.
3244
(Selective)
 You have agreed that procedures in awarding grants under your program will be in compliance with Sections 4.01 through 4.07 of Rev. Proc. 76–47 (without regard to the amendments to section 117(a) made by the Tax Reform Act of 1986). In particular, the selection of individual grant recipients will be made by a selection committee the members of which are totally independent and separate from the private foundation, the foundation’s creator, and relevant employer. The grants will not be used as a means of inducement to recruit employees nor will a grant be terminated if the employee leaves the employer. The recipient will not be restricted in a course of study that would be of particular benefit
3245 to the relevant employer or to the foundation.
(Selective)  Section 4.08 of Rev. Proc. 76–47 provides a percentage test guideline. It states that in the case of a program that awards grants to children of employees of a particular employer, the program meets the percentage test if either of the following tests is met: the number of grants awarded under that program in any year to such children does not exceed 25 percent of the number of employees’ children who were eligible, were applicants for such grants, and were considered by the selection committee in selecting the recipients of grants in that year, or the number of grants awarded under the program in any year to
3246 such children does not exceed 10 percent of the number of employees’ children who can be shown to be eligible for grants (whether or not they submitted an application) in that year.
(Selective)  You have agreed that your program will meet the requirements of either the 25 percent or 10 percent test of Section 4.08 applicable to a program that awards grants to children of employees of a particular employer. Records should be maintained to show that you meet the applicable percentage test of Section 4.08.
3247  This ruling is issued with the understanding that in applying the 10 percent test applicable to employees’ children set forth in Rev. Proc. 76–47, you will only include as eligible those children who meet the eligibility standards described in Rev. Proc. 85–51, 1985–2 C.B. 717.
(Selective)  This ruling will remain in effect as long as the procedures in awarding grants under your program remain in compliance with Sections 4.01 through 4.08 of Rev. Proc. 76–47 (without regard to the amendments to section 117(a) made by the Tax Reform Act of 1986). If you enter into any other program covering the
3248
(Selective)
same individuals, the percentage test of Rev. Proc. 76–47 must be met in the aggregate.
3250  We considered your grant-making procedures under section 4945(g) of the Code. Based on the information submitted and assuming your scholarship program will be conducted as proposed with objectivity and nondiscrimination in awarding loans, we determined that your procedures in awarding educational loans comply with the requirements of section 4945(g)(3), and that loans granted according to these procedures will not be "taxable expenditures" within the meaning of section 4945(d)(3).
(Selective)  This determination is conditioned on the understanding that there will be
3251 no material change in the facts upon which it is based. It is further conditioned on the premise that no loans will be awarded to your trust’s creators, trustees, or members of the selection committee, or for a purpose that is inconsistent with the purposes described in section 170(c)(2)(B).
(Selective)  The approval of your educational loan procedures is a one-time approval of your system of standards and procedures that will result in loans that meet the requirements of section 4945(g)(3). Thus, approval will apply to succeeding educational loan programs only as long as the standards and procedures under which they are conducted do not differ materially from those described in your
3252 request.
(Selective)  Any funds you distribute to individuals must be made on a true charitable basis in furtherance of the purposes for which you are organized. Therefore, you should keep adequate records and case histories so that any or all loan distributions can be substantiated upon request by the Internal Revenue Service.
3254
(Selective)
 Rev. Proc. 80–39, 1980–2 C.B. 772, sets forth guidelines to be used in determining whether educational loans made by a private foundation under an employer-related program to a child of an employee of the particular employer to which the program relates are taxable expenditures under section 4945 of the Code. If a private foundation’s program satisfies the seven conditions set forth in Sections 4.03 through 4.09 of Rev. Proc. 80–39 and meets the percentage test described in Section 4.10, the Service will assume the loans are not taxable expenditures.
3255
(Selective)
 You have agreed that procedures in awarding loans under your program will be in compliance with Sections 4.03 through 4.09 of Rev. Proc. 80–39. In particular, the section of individual loan recipients will be made by a selection committee the members of which are totally independent and separate from the private foundation, the foundation’s creator, and the relevant employer. The loans will not be used as a means of inducement to recruit employees nor will a loan be terminated if the employee leaves the employer. The recipient will not be restricted in a course of study that would be of particular benefit to the relevant employer or to the foundation.
3256  Section 4.10 of Rev. Proc. 80–39 provides a percentage test guideline. It states that in the case of a program that awards loans to children of employees of a particular employer, the program meets the percentage test if either of the following tests is met: (1) the number of loans awarded under that program in any year to such children does not exceed 25 percent of the number of employees’ children who were (i) eligible, (ii) were applicants for such loans, and (iii) were considered by the selection committee in selecting the recipients of loans in that year, or (2) the number of loans awarded under the program in any year to such children does not exceed 10 percent of the number of
3257
(Selective)
employees’ children who can be shown to be eligible for loans (whether or not they submitted an application) in that year.
   You have agreed that your program will meet the requirements of either the 25 percent or 10 percent percentage test of Section 4.10 applicable to a program that awards loans to children of employees of a particular employer. You should be maintained to show that you meet the applicable percentage test of Section 4.10.
   This ruling is issued with the understanding that in applying the 10 per-
3258 cent test applicable to employees’ children set forth in Rev. Proc. 80–39, you will only include as eligible those children who meet the eligibility standards described in Rev. Proc. 85–51, 1985–2 C.B. 717.
(Selective)  This ruling will remain in effect as long as the procedures in awarding loans under your program remain in compliance with Sections 4.03 through 4.10 of Rev. Proc. 80–39. If you enter into any other program covering the same individuals, the percentage test of Rev. Proc. 80–39 must be met in the aggregate.
3260
(Selective)
 We considered your grant-making procedures under section 4945(g) of the Internal Revenue Code. Based on the information submitted and assuming your scholarship and loan programs will be conducted as proposed with objectivity and nondiscrimination in the awarding of grants and loans, we determined that your procedures in the awarding of scholarship grants and educational loans comply with the requirements in sections 4945(g)(1) and 4945(g)(3) and that scholarships and loans granted according to these procedures will not be "taxable expenditures" within the meaning of section 4945(d)(3).
3261
(Selective)
 This determination is conditioned on the understanding that there will be no material change in the facts upon which it is based. It is further conditioned on the premises that no grants or loans will be awarded to the trust’s creators, trustees, or members of the selection committee, or for a purpose that is inconsistent with the purposes described in section 170(c)(2)(B). The approval of your grant-making procedures is a one-time approval of your system of standards and procedures that will result in grants and loans
3262 which meet the requirements of section 4945(g)(1) and 4945(g)(3). Thus, approval will apply to succeeding grant and loan programs only as long as the standards and procedures under which they are conducted do not differ materially from those described in your request.
(Selective)  We have not considered whether grants made under your procedures are excludable from the gross income of recipients under section 117(a) of the Code. Any funds you distribute to individuals must be made on a true charitable
3263
(Selective)
basis in furtherance of the purposes for which you are organized. Therefore, you should maintain adequate records and case histories so that any or all grant and loan distributions can be substantiated upon request by the Internal Revenue Service.
3265
(Selective)
 Rev. Proc. 76–47, 1976–2 C.B. 670, sets forth guidelines to be used in determining whether a grant made by a private foundation under an employer-related program to a child of an employee of the particular employer to which the program relates is a scholarship grant that meets the provisions of section 117(a) of the Code (as that section read before the Tax Reform Act of 1986). Rev. Proc. 80–39, 1980–2 C.B. 772, sets forth guidelines to be used in determining whether educational loans made by a private foundation under an employer-related program to a child of an employee of the particular employer to which the program relates are taxable expenditures under section 4945 of the
3266
(Selective)
Code. The Service will assume that scholarship or fellowship grants will meet the provisions of section 117(a) (as that section read before the Tax Reform Act of 1986) if a private foundation’s program satisfies the seven conditions set forth in Sections 4.01 through 4.07 and meets the percentage test described in Section 4.08 of Rev. Proc. 76–47. The Service will also assume that educational loans are not taxable expenditures if a private foundation’s program satisfies the seven conditions set forth in Sections 4.03 through 4.09 and meets the percentage test described in section 4.10 of Rev. Proc. 80–39. You have agreed that procedures in awarding grants and loans under your
3267
(Selective)
program will be in compliance with Sections 4.01 through 4.07 of Rev. Proc. 76–47 (without regard to the amendments to section 117(a) made by the Tax Reform Act of 1986), and Sections 4.03 through 4.09 of Rev. Proc. 80–39, respectively. In particular, the selection of individual grant or loan recipients will be made by a selection committee the members of which are totally independent and separate from the private foundation, the foundation’s creator, and the relevant employer. The grants or loans will not be used as a means of inducement to recruit employees nor will a grant or loan be terminated if the
3268 employee leaves the employer. The recipient will not be restricted in a course of study that would be of particular benefit to the relevant employer or to the foundation.
  Section 4.08 of Rev. Proc. 76–47 and Section 4.10 of Rev. Proc. 80–39 provide a percentage test guideline. They state that in the case of a program that awards grants or loans to children of employees of a particular employer, the program meets the percentage test if either of the following tests is met:
(Selective) (1) the number of grants or loans awarded under the program in any year to such children does not exceed 25 percent of the number of employees’ children who
3269
(Selective)
(i) were eligible, (ii) were applicants for such grants or loans, and (iii) were considered by the selection committee in selecting the recipients of grants or loans in that year, or (2) the number of grants or loans awarded under the program in any year to such children does not exceed 10 percent of the number of employees’ children who can be shown to be eligible for grants or loans (whether or not they submitted an application) in that year. Section 4.10 of Rev. Proc. 80–39 provides that if a private foundation’s employer-related program encompasses educational loans and scholarship or fellowship grants to the same group of eligible employees’ children, the percentage tests in Section 4.10 apply to the total number of individuals receiving combined
3270 grants of scholarships, fellowships, and educational loans
(Selective)  You have agreed that your program will meet the requirement of either the 25 percent or 10 percent percentage test of Section 4.08 of Rev. Proc. 76–47 and Section 4.10 of Rev. Proc. 80–39 applicable to a program that awards grants and loans, respectively, to children of employees of a particular employer. Records should be maintained to show that you meet the applicable percentage test of Section 4.08 or 4.10.
3271  This ruling is issued with the understanding that in applying the 10 percent test applicable to employees’ children set forth in Rev. Procs. 76–47 and 80–39, you will include as eligible only those children who meet the eligibility standards described in Rev. Proc. 85–51, 1985–2 C.B. 717.
(Selective)  This ruling will remain in effect as long as the procedures in awarding grants and loans under your programs remain in compliance with Sections 4.01 through 4.08 of Rev. Proc. 76–47 (without regard to the amendments to section 117(a) made by the Tax Reform Act of 1986), and Section 4.08 through 4.10 of
3272
(Selective)
 Rev. Proc. 80–39, respectively. If you enter into any other program covering the same individuals, the percentage test of Rev. Procs. 76–47 and 80–39 must be met in the aggregate.
3341
(Selective)
 If you do not agree with our determination, you may request consideration of the 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 Internal Revenue Code provides, in part, that, "A declaratory judgment 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."
5997
(Automatic)
 If we have indicated in the heading of this letter that an addendum applies, the addendum enclosed 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)
Addendum Applies:
[20V]
8610
(Selective)
Enclosure:
Addendum

Exhibit 7.21.5-22  (01-01-2003)
Letter 1077 (DO/CG)
EO Favorable Determination Letter on Private Operating Foundation Status After 4653

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1
(Automatic)
 This modifies our letter to you in which we classified you as a private foundation but had not considered whether you qualify as an operating private foundation.
 3
(Automatic)
 Based on additional information you furnished, and the assumption that your operations will be as you have stated, we have now classified you as an operating foundation as defined in section 4942(j)(3) of the Internal Revenue Code. We also confirm your classification as a private foundation within the meaning of section 509(a) of the Code. Your exempt status under section 501(a) of the Code as an organization described in section 501(c)(3) is still in effect.
 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 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.
 7
(Automatic)
 If we have indicated in the heading of this letter that an addendum applies, the addendum enclosed is an integral part of this letter. Because this letter could help resolve any questions about your private foundation status, please 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 above.
(Automatic) Sincerely yours,
8500
(Automatic)
Director, Exempt Organizations
8010
(Required)
Our Letter Dated:
[20V]
8011
(Required)
Addendum Applies:
[20V]
8610
(Selective)
Enclosure:
Addendum

Exhibit 7.21.5-23  (01-01-2003)
Letter 1078 (DO/CG)
EO Favorable Determination Letter on Foundation Status

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1
(Automatic)
 Based on the information you recently submitted, we have classified your organization as one that is not a private foundation within the meaning of section 509(a) of the Internal Revenue Code because you are described in
 2
(Selective)
sections 509(a)(1) and 170(b)(1)(A)(i).
 3
(Selective)
sections 509(a)(1) and 170(b)(1)(A)(ii).
 4
(Selective)
sections 509(a)(1) and 170(b)(1)(A)(iii).
 5
(Selective)
sections 509(a)(1) and 170(b)(1)(A)(iv).
 6
(Selective)
sections 509(a)(1) and 170(b)(1)(A)(v).
 7
(Selective)
sections 509(a)(1) and 170(b)(1)(A)(vi).
 8
(Selective)
section 509(a)(2).
 9
(Selective)
section 509(a)(3).
 10
(Selective)
section 509(a)(4).
 12
(Automatic)
 Your exempt status under section 501(a) of the Internal Revenue Code as an organization described in 501(c)(3) is still in effect.
 14
(Required)
 This classification is based on the assumption that your operations will continue as you have stated. 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. This supersedes our letter dated [20V].
 16
(Required)
 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)([1V]) 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)([1V]) organization.
3332
(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).
3337
(Selective)
 You are required to file Form 990 only if your gross receipts each year are normally more than $25,000. For guidance in determining whether your gross receipts are "normally" more than $25,000, see the instructions for Form 990. 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
3338
(Selective)
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 return is not complete, so please be sure your return is complete before you file it.
3339
(Selective)
 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).
5997
(Automatic)
 If we have indicated in the heading of this letter that an addendum applies, the addendum enclosed is an integral part of this letter. Because this letter could help resolve any questions about your private 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 above.
(Automatic) Sincerely yours,
8500
(Automatic)
Director, Exempt Organizations
8010
(Required)
Addendum Applies:
[20V]
8610
(Selective)
Enclosure:
Addendum

Exhibit 7.21.5-24  (01-01-2003)
Letter 1079 (DO/CG)
EO Favorable Determination Letter 501(c)(3) Status — Adverse on Foundation Status

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).
 3  We have further determined that, based on the information supplied in your application, you are a private foundation within the meaning of section 509(a) of the Code. The basis for this determination is shown in the enclosed Form 5795. In this letter we are not determining whether you are an operating foundation described in section 4942(j)(3).
(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 amend-
 5 ment 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.
(Automatic)  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). However, since you are a private foundation, you are subject to excise taxes under Chapter 42 of the Code. You also may be subject to other Federal excise
 7 taxes. If you have any questions about excise, employment, or other Federal taxes, please let us know.
(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 sections 2055, 2106, and 2522 of the Code.
 9
(Automatic)
 You are required to file Form 990–PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as a Private Foundation. Form 990–PF 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
 10
(Automatic)
receipts exceeding $1,000,000 shall not exceed $50,000. This penalty may also be charged if a return is not complete, so please be sure your return is complete before you file it.
 11
(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.
 12
(Automatic)
 You are required to make your annual return available for public inspection within 180 days after the date of publication of its availability and you must publish the notice of availability no later than the date required for filing the return. 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).
 13
(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.
 15
(Automatic)
 If you do not agree with our determination that you are a private foundation, 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
 17 power of attorney or tax information authorization with us.
   If you do not appeal this determination on your private foundation status 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 judgment 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
 19
(Automatic)
 United States for the District of Columbia determines that the organization involved has exhausted administrative remedies available to it within the Internal Revenue Service."
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.
3239  We considered your grant-making procedures under section 4945(g) of the Code. Based on the information submitted and assuming your scholarship program will be conducted as proposed with objectivity and nondiscrimination in awarding grants, we determined that your procedures in awarding scholarship grants comply with the requirements of section 4945(g)(1),and that scholarships granted according to these procedures will not be "taxable expenditures" within the meaning of section 4945(d)(3).
(Selective)  This determination is conditioned on the understanding that there will be
3240 no material change in the facts upon which it is based. It is further conditioned on the premise that no grants will be awarded to the trust’s creators, trustees, or members of the selection committee, or for a purpose that is inconsistent with the purposes described in section 170(c)(2)(B) of the Code.
(Selective) The approval of your grant-making procedures is a one-time approval of your system of standards and procedures that will result in grants that meet the requirements of section 4945(g)(1) of the Code. Thus, approval will apply to succeeding grant programs only as long as the standards and procedures under which they are conducted do not differ materially from those described in your
3241 request.
  We have not considered whether grants made under your procedures are excludable from the gross income of recipients under section 117(a) of the Code.
(Selective)  Any funds you distribute to individuals must be made on a true charitable basis in furtherance of the purposes for which you are organized. Therefore, you should maintain adequate records and case histories so that any or all grant distributions can be substantiated upon request by the Internal Revenue Service.
3243  Rev. Proc. 76–47, 1976–2 C.B. 670, sets forth guidelines to be used in determining whether a grant made by a private foundation under an employer-related program to a child of an employee of the particular employer to which the program relates is a scholarship grant that meets the provisions of section 117(a) of the Code (as that section read before the Tax Reform Act of 1986). If a private foundation’s program satisfies the seven conditions set forth in Sections 4.01 through 4.07 of Rev. Proc 76–47 and meets the percentage test described in Section 4.08, the Service will assume the grants meet the provisions of section 117(a), as that section read before the Tax Reform Act of 1986.
3244  You have agreed that procedures in awarding grants under your program will be in compliance with Sections 4.01 through 4.07 of Rev. Proc. 76–47 (without regard to the amendments to section 117(a) made by the Tax Reform Act of 1986). In particular, the section of individual grant recipients will be made by a selection committee the members of which are totally independent and separate from the private foundation, the foundation’s creator, and relevant employer. The grants will not be used as a means of inducement to recruit employees nor will a grant be terminated if the employee leaves the employer. The recipient will not be restricted in a course of study that would be of particular benefit
3245 to the relevant employer or to the foundation.
   Section 4.08 of Rev. Proc. 76–47 provides a percentage test guideline. It states that in the case of a program that awards grants to children of employees of a particular employer, the program meets the percentage test if either of the following tests is met: the number of grants awarded under that program in any year to such children does not exceed 25 percent of the number of employee’s children who were eligible, were applicants for such grants, and were considered by the selection committee in selecting the recipients of grants in that year, or the number of grants awarded under the program in any year to
3246 such children does not exceed 10 percent of the number of employees’ children who can be shown to be eligible for grants (whether or not they submitted an application) in that year.
(Selective)  You have agreed that your program will meet the requirements of either the 25 percent or 10 percent percentage test of Section 4.08 applicable to a program that awards grants to children of employees of a particular employer. Records should be maintained to show that you meet the applicable percentage test of Section 4.08.
3247  This ruling is issued with the understanding that in applying the 10 percent test applicable to employees’ children set forth in Rev. Proc. 76–47, you will only include as eligible those children who meet the eligibility standards described in Rev. Proc. 85–51, 1985–2 C.B. 717.
(Selective)  This ruling will remain in effect as long as the procedures in awarding grants under your program remain in compliance with Sections 4.01 through 4.08 of Rev. Proc. 76–47 (without regard to the amendments to section 117(a) made by the Tax Reform Act of 1986). If you enter into any other program covering the
3248
(Selective)
same individuals, the percentage test of Rev. Proc. 76–47 must be met in the aggregate.
3250  We considered your grant-making procedures under section 4945(g) of the Code. Based on the information submitted and assuming your scholarship program will be conducted as proposed with objectivity and nondiscrimination in awarding loans, we determined that your procedures in awarding educational loans comply with the requirements of section 4945(g)(3), and that loans granted according to these procedures will not be "taxable expenditures" within the meaning of section 4945(d)(3).
(Selective)  This determination is conditioned on the understanding that there will be
3251
(Selective)
no material change in the facts upon which it is based. It is further conditioned on the premise that no loans will be awarded to your trust’s creators, trustees, or members of the selection committee, or for a purpose that is inconsistent with the purposes described in section 170(c)(2)(B). The approval of your educational loan procedures is a one-time approval of your system of standards and procedures that will result in loans that meet the requirements of section 4945(g)(3). Thus, approval will apply to succeeding educational loan programs only as long as the standards and procedures under which they are conducted do not differ materially from those described in your
3252 request.
(Selective)  Any funds you distribute to individuals must be made on a true charitable basis in furtherance of the purposes for which you are organized. Therefore, you should maintain adequate records and case histories so that any or all loan distributions can be substantiated upon request by the Internal Revenue Service.
3254
(Selective)
 Rev. Proc. 80–39, 1980–2 C.B. 772, sets forth guidelines to be used in determining whether educational loans made by a private foundation under an employer-related program to a child of an employee of the particular employer to which the program relates are taxable expenditures under section 4945 of the Code. If a private foundation’s program satisfies the seven conditions set forth in Sections 4.03 through 4.09 of Rev. Proc. 80–39 and meets the percentage test described in Section 4.10, the Service will assume the loans are not taxable expenditures.
3255
(Selective)
 You have agreed that procedures in awarding loans under your program will be in compliance with Sections 4.03 through 4.09 of Rev. Proc. 80–39. In particular, the selection of individual loan recipients will be made by a selection committee the members of which are totally independent and separate from the private foundation, the foundation’s creator, and the relevant employer. The loans will not be used as a means of inducement to recruit employees nor will a loan be terminated if the employee leaves the employer. The recipient will not be restricted in a course of study that would be of particular benefit to the relevant employer or to the foundation.
3256
(Selective)
 Section 4.10 of Rev. Proc. 80–39 provides a percentage test guideline. It states that in the case of a program that awards loans to children of employees of a particular employer, the program meets the percentage test if either of the following tests is met: (1) the number of loans awarded under that program in any year to such children does not exceed 25 percent of the number of employees’ children who (i) were eligible, (ii) were applicants for such loans, and (iii) were considered by the selection committee in selecting the recipients of loans in that year, or (2) the number of loans awarded under the program in any year to such children does not exceed 10 percent of the number of
3257
(Selective)
employees’ children who can be shown to be eligible for loans (whether or not they submitted an application) in that year.
   You have agreed that your program will meet the requirements of either the 25 percent or 10 percent percentage test of Section 4.10 applicable to a program that awards loans to children of employees of a particular employer. Records should be maintained to show that you meet the applicable percentage test of section 4.10.
   This ruling is issued with the understanding that in applying the 10 per-
3258 cent test applicable to employees’ children set forth in Rev. Proc. 80–39, you will only include as eligible those children who meet the eligibility standards described in Rev. Proc. 85–51, 1985–2 C.B. 717.
(Selective)  This ruling will remain in effect as long as the procedures in awarding loans under your program remain in compliance with Sections 4.03 through 4.10 of Rev. Proc. 80–39. If you enter into any other program covering the same individuals, the percentage test of Rev. Proc. 80–39 must be met in the aggregate.
3260
(Selective)
 We considered your grant-making procedures under section 4945(g) of the Internal Revenue Code. Based on the information submitted and assuming your scholarship and loan programs will be conducted as proposed with objectivity and nondiscrimination in the awarding of grants and loans, we determined that your procedures in the awarding of scholarship grants and educational loans comply with the requirements in sections 4945(g)(1) and 4945(g)(3) and that scholarships and loans granted according to these procedures will not be "taxable expenditures" within the meaning of section 4945(d)(3).
3261  This determination is conditioned on the understanding that there will be no material change in the facts upon which it is based. If is further conditioned on the premises that no grants or loans will be awarded to the trust’s creators, trustees, or members of the selection committee, or for a purpose that is inconsistent with the purposes described in section 170(c)(2)(B).
(Selective)  The approval of your grant-making procedures is a one-time approval of your system of standards and procedures that will result in grants and loans
3262 which meet the requirements of section 4945(g)(1) and 4945(g)(3). Thus, approval will apply to succeeding grant and loan programs only as long as the standards and procedures under which they are conducted do not differ materially from those described in your request.
(Selective)  We have not considered whether grants made under your procedures are excludable from the gross income of recipients under section 117(a) of the Code. Any funds you distribute to individuals must be made on a true charitable
3263
(Selective)
basis in furtherance of the purposes for which you are organized. Therefore, you should maintain adequate records and case histories so that any or all grant and loan distributions can be substantiated upon request by the Internal Revenue Service.
3265  Rev. Proc. 76–47, 1976–2 C.B. 670, sets forth guidelines to be used in determining whether a grant made by a private foundation under an employer-related program to a child of an employee of the particular employer to which the program relates is a scholarship grant that meets the provisions of section 117(a) of the Code (as that section read before the Tax Reform Act of 1986).
(Selective)  Rev. Proc. 80–39, 1980–2 C.B. 772, sets forth guidelines to be used in determining whether educational loans made by a private foundation under an employer-related program to a child of an employee of the particular employer to which the program relates are taxable expenditures under section 4945 of the
3266  Code. The Service will assume that scholarship or fellowship grants will meet the provisions of section 117(a) (as that section read before the Tax Reform Act of 1986) if a private foundation’s program satisfies the seven conditions set forth in Sections 4.01 through 4.07 and meets the percentage test described in Section 4.08 of Rev. Proc. 76–47. The Service will also assume that educational loans are not taxable expenditures if a private foundation’s program satisfies the seven conditions set forth in Sections 4.03 through 4.09 and meets the percentage test described in Section 4.10 of Rev. Proc. 80–39.
(Selective)  You have agreed that procedures in awarding grants and loans under your
3267
(Selective)
program will be in compliance with Sections 4.01 through 4.07 of Rev. Proc. 76–47 (without regard to the amendments to section 117(a) made by the Tax Reform Act of 1986), and Sections 4.03 through 4.09 of Rev. Proc. 80–39, respectively. In particular, the selection of individual grant or loan recipients will be made by a selection committee the members of which are totally independent and separate from the private foundation, the foundation’s creator, and the relevant employer. The grants or loans will not be used as a means of inducement to recruit employees nor will a grant or loan be terminated if the em-
3268 ployee leaves the employer. The recipient will not be restricted in a course of study that would be of particular benefit to the relevant employer or to the foundation.
   Section 4.08 of Rev. Proc. 76–47 and Section 4.10 of Rev. Proc. 80–39 provide a percentage test guideline. They state that in the case of a program that awards grants or loans to children of employees of a particular employer, the program meets the percentage test if either of the following tests is met:
(Selective)  (1) the number of grants or loans awarded under the program in any year to such children does not exceed 25 percent of the number of employees’ children who
3269 (i) were eligible, (ii) were applicants for such grants or loans, and (iii) were considered by the selection committee in selecting the recipients of grants or loans in that year, or
(Selective) (2) the number of grants or loans awarded under the program in any year to such children does not exceed 10 percent of the number of employees’ children who can be shown to be eligible for grants or loans (whether or not they submitted an application) in that year. Section 4.10 of Rev. Proc. 80–39 provides that if a private foundation’s employer-related program encompasses educational loans and scholarship or fellowship grants to the same group of eligible employees’ children, the percentage tests in Section 4.10 apply to the total number of individuals receiving combined
3270 grants of scholarships, fellowships, and educational loans
(Selective)  You have agreed that your program will meet the requirement of either the 25 percent or 10 percent percentage test of Section 4.08 of Rev. Proc 76–47 and Section 4.10 of Rev. Proc. 80–39 applicable to a program that awards grants and loans, respectively, to children of employees of a particular employer. Records should be maintained to show that you meet the applicable percentage test of Section 4.08 or 4.10.
3271
(Selective)
 This ruling is issued with the understanding that in applying the 10 percent test applicable to employees’ children set forth in Rev. Procs. 76–47 and 80–39, you will include as eligible only those children who meet the eligibility standards described in Rev. Proc. 85–51, 1985–2 C.B. 717. This ruling will remain in effect as long as the procedures in awarding grants and loans under your programs remain in compliance with Sections 4.01 through 4.08 of Rev. Proc. 76–47 (without regard to the amendments to section 117(a) made by the Tax Reform Act of 1986), and Section 4.08 through 4.10 of
3272
(Selective)
 Rev. Proc. 80–39, respectively. If you enter into any other program covering the same individuals, the percentage test of Rev. Procs. 76–47 and 80–39 must be met in the aggregate.
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 addendum enclosed is an integral part of this letter. Because this letter could help resolve any questions about your exempt status and private 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)
Addendum Applies:
[20V]
8610
(Automatic)
Enclosures:
Form 5795
Publication 892
8620
(Selective)
Form 6018
8630
(Selective)
Addendum

Exhibit 7.21.5-25  (01-01-2003)
Letter 1080 (DO/CG)
Favorable Determination Letter 501(c)(3) — Adverse on Operating Foundation Status

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).
 3  We have further determined that, as indicated in your application, you are a private foundation within the meaning of section 509(a) of the Code. We have also determined that you are not an operating foundation as defined in section 4942(j)(3) of the Code. The basis for this determination is shown in the enclosed Form 5795.
(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 amend-
 5 ment 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.
(Automatic)  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). However, since you are a private foundation, you are subject to excise taxes under Chapter 42 of the Code. You also may be subject to other Federal excise taxes. If
 7 you have any questions about excise, employment, or other Federal taxes, please let us know.
(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 sections 2055, 2106, and 2522 of the Code.
 9
(Automatic)
 You are required to file Form 990–PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as a Private Foundation. Form 990–PF 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 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
 10
(Automatic)
exceeding $1,000,000 shall not exceed $50,000. This penalty may also be charged if a return is not complete, so please be sure your return is complete before you file it.
 11
(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.
 13
(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.
 14
(Automatic)
 You are required to make your annual return available for public inspection within 180 days after the date of publication of its availability, and you must publish the notice of availability no later than the date required for filing the return. 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).
 15
(Automatic)
 If you do not agree with our determination that you are not an operating foundation, 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
 17 file a power of attorney or tax information authorization with us.
(Automatic)  If you do not appeal this determination on your operating foundation status 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 administration remedies. Section 7428(b)(2) of the Code provides, in part, that, "A declaratory judgment or decree under this section shall not be issued in any proceeding unless the Tax Court, the Claims Court, or the district court
 19
(Automatic)
 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."
ADDITIONAL PARAGRAPHS
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 date, to [20V], your dissolution date.
(Selective) You are not required to file Federal income tax returns for that period.
3239
3240
3241
 We considered your grant-making procedures under section 4945(g) of the Code. Based on the information submitted and assuming your scholarship program will be conducted as proposed with objectivity and nondiscrimination in awarding grants, we determined that your procedures in awarding scholarship grants comply with the requirements of section 4945(g)(1), and that scholarships granted according to these procedures will not be "taxable expenditures" within the meaning of section 4945(d)(3).
   This determination is conditioned on the understanding that there will be no material change in the facts upon which it is based. It is further conditioned on the premise that no grants will be awarded to the trust’s creators, trustees, or members of the selection committee, or for a purpose that is inconsistent with the purposes described in section 170(c)(2)(B) of the Code. The approval of your grant-making procedures is a one-time approval of your system of standards and procedures that will result in grants that meet the requirements of section 4945(g)(1) of the Code. Thus, approval will apply to succeeding grant programs only as long as the standards and procedures under which they are conducted do not differ materially from those described in your request.
(Selective)  We have not considered whether grants made under your procedures are excludable from the gross income of recipients under section 117(a) of the Code. Any funds you distribute to individuals must be made on a true charitable basis in furtherance of the purposes for which you are organized. Therefore, you should maintain adequate records and case histories so that any or all grant distributions can be substantiated upon request by the Internal Revenue Service.
3243
3244
3245
3246
3247
3248
 Rev. Proc. 76–47, 1976–2 C.B. 670, sets forth guidelines to be used in determining whether a grant made by a private foundation under an employer-related program to a child of an employee of the particular employer to which the program relates is a scholarship grant that meets provisions of section 117(a) of the Code (as that section read before the Tax Reform Act of 1986). If a private foundation’s program satisfies the seven conditions set forth in Sections 4.01 through 4.07 of Rev. Proc 76–47 and meets the percentage test described in Section 4.08, the Service will assume the grants meet the provisions of section 117(a), as that section read before the Tax Reform Act of 1986.
   You have agreed that procedures in awarding grants under your program will be in compliance with Sections 4.01 through 4.07 of Rev. Proc. 76–47 (without regard to the amendments to section 117(a) made by the Tax Reform Act of 1986). In particular, the section of individual grant recipients will be made by a selection committee the members of which are totally independent and separate from the private foundation, the foundation’s creator, and relevant employer. The grants will not be used as a means of inducement to recruit employees nor will a grant be terminated if the employee leaves the employer. The recipient will not be restricted in a course of study that would be of particular benefit to the relevant employer or to the foundation.
   Section 4.08 of Rev. Proc. 76–47 provides a percentage test guideline. It states that in the case of a program that awards grants to children of employees of a particular employer, the program meets the percentage test if either of the following tests is met: the number of grants awarded under that program in any year to such children does not exceed 25 percent of the number of employee’s children who were eligible, were applicants for such grants, and were considered by the selection committee in selecting the recipients of grants in that year, or the number of grants awarded under the program in any year to such children does not exceed 10 percent of the number of employees’ children who can be shown to be eligible for grants (whether or not they submitted an application) in that year.
   You have agreed that your program will meet the requirements of either the 25 percent or 10 percent percentage test of Section 4.08 applicable to a program that awards grants to children of employees of a particular employer. Records should be maintained to show that you meet the applicable percentage test of Section 4.08.
   This ruling is issued with the understanding that in applying the 10 percent test applicable to employees’ children set forth in Rev. Proc. 76–47, you will only include as eligible those children who meet the eligibility standards described in Rev. Proc. 85–51, 1985–2 C.B. 717.
(Selective)  This ruling will remain in effect as long as the procedures in awarding grants under your program remain in compliance with Sections 4.01 through 4.08 of Rev. Proc. 76–47 (without regard to the amendments to section 117(a) made by the Tax Reform Act of 1986). If you enter into any other program covering the same individuals, the percentage test of Rev. Proc. 76–47 must be met in the aggregate.
3250
3251
3252
 We considered your grant-making procedures under section 4945(g) of the Code. Based on the information submitted and assuming your scholarship program will be conducted as proposed with objectivity and nondiscrimination in awarding loans, we determined that your procedures in awarding educational loans comply with the requirements of section 4945(g)(3), and that loans granted according to these procedures will not be "taxable expenditures" within the meaning of section 4945(d)(3).
   This determination is conditioned on the understanding that there will be no material change in the facts upon which it is based. It is further conditioned on the premise that no loans will be awarded to your trust’s creators, trustees, or members of the selection committee, or for a purpose that is inconsistent with the purposes described in section 170(c)(2)(B).
   The approval of your educational loan procedures is a one-time approval of your system of standards and procedures that will result in loans that meet the requirements of section 4945(g)(3). Thus, approval will apply to succeeding educational loan programs only as long as the standards and procedures under which they are conducted do not differ materially from those described in your request.
(Selective)  Any funds you distribute to individuals must be made on a true charitable basis in furtherance of the purposes for which you are organized. Therefore, you should maintain adequate records and case histories so that any or all loan distributions can be substantiated upon request by the Internal Revenue Service.
3254
3255
3256
3257
3258
 Rev. Proc. 80–39, 1980–2 C.B. 772, sets forth guidelines to be used in determining whether educational loans made by a private foundation under an employer-related program to a child of an employee of the particular employer to which the program relates are taxable expenditures under section 4945 of the Code. If a private foundation’s program satisfies the seven conditions set forth in Sections 4.03 through 4.09 of Rev. Proc. 80–39 and meets the percentage test described in Section 4.10, the Service will assume the loans are not taxable expenditures.
   You have agreed that procedures in awarding loans under your program will be in compliance with Sections 4.03 through 4.09 of Rev. Proc. 80–39. In particular, the section of individual loan recipients will be made by a selection committee the members of which are totally independent and separate from the private foundation, the foundation’s creator, and the relevant employer.
   The loans will not be used as a means of inducement to recruit employees nor will a loan be terminated if the employee leaves the employer. The recipient will not be restricted in a course of study that would be of particular benefit to the relevant employer or to the foundation.
   Section 4.10 of Rev. Proc. 80–39 provides a percentage test guideline. It states that in the case of a program that awards loans to children of employees of a particular employer, the program meets the percentage test if either of the following tests is met: (1) the number of loans awarded under that program in any year to such children does not exceed 25 percent of the number of employees’ children who (i) were eligible, (ii) were applicants for such loans, and (iii) were considered by the selection committee in selecting the recipients of loans in that year, or (2) the number of loans awarded under the program in any year to such children does not exceed 10 percent of the number of employees’ children who can be shown to be eligible for loans (whether or not they submitted an application) in that year.
   You have agreed that your program will meet the requirements of either the 5 percent or 10 percent percentage test of Section 4.10 applicable to a program that awards loans to children of employees of a particular employer. Records should be maintained to show that you meet the applicable percentage test of Section 4.10.
   This ruling is issued with the understanding that in applying the 10 percent test applicable to employees’ children set forth in Rev. Proc. 80–39, you will only include as eligible those children who meet the eligibility standards described in Rev. Proc. 85–51, 1985–2 C.B. 717.
(Selective)  This ruling will remain in effect as long as the procedures in awarding loans under your program remain in compliance with Sections 4.03 through 4.10 of Rev. Proc. 80–39. If you enter into any other program covering the same individuals, the percentage test of Rev. Proc. 80–39 must be met in the aggregate.
3260
3261
3262
3263
 We considered your grant-making procedures under section 4945(g) of the Internal Revenue Code. Based on the information submitted and assuming your scholarship and loan programs will be conducted as proposed with objectivity and nondiscrimination in the awarding of grants and loans, we determined that your procedures in the awarding of scholarship grants and educational loans comply with the requirements in sections 4945(g)(1) and 4945(g)(3) and that scholarships and loans granted according to these procedures will not be "taxable expenditures" within the meaning of section 4945(d)(3).
   This determination is conditioned on the understanding that there will be no material change in the facts upon which it is based. If is further conditioned on the premises that no grants or loans will be awarded to the trust’s creators, trustees, or members of the selection committee, or for a purpose that is inconsistent with the purposes described in section 170(c)(2)(B).
   The approval of your grant-making procedures is a one-time approval of your system of standards and procedures that will result in grants and loans which meet the requirements of section 4945(g)(1) and 4945(g)(3). Thus, approval will apply to succeeding grant and loan programs only as long as the standards and procedures under which they are conducted do not differ materially from those described in your request.
   We have not considered whether grants made under your procedures are excludable from the gross income of recipients under section 117(a) of the Code.
(Selective)  Any funds you distribute to individuals must be made on a true charitable basis in furtherance of the purposes for which you are organized. Therefore, you should maintain adequate records and case histories so that any or all grant and loan distributions can be substantiated upon request by the Internal Revenue Service.
3265
3266
3267
3268
3269
3270
3271
3272
 Rev. Proc. 76–47, 1976–2 C.B. 670, sets forth guidelines to be used in determining whether a grant made by a private foundation under an employer-related program to a child of an employee of the particular employer to which the program relates is a scholarship grant that meets the provisions of section 117(a) of the Code (as that section read before the Tax Reform Act of 1986). Rev. Proc. 80–39, 1980–2 C.B. 772, sets forth guidelines to be used in determining whether educational loans made by a private foundation under an employer-related program to a child of an employee of the particular employer to which the program relates are taxable expenditures under section 4945 of the Code. The Service will assume that scholarship or fellowship grants will meet the provisions of section 117(a) (as that section read before the Tax Reform Act of 1986) if a private foundation’s program satisfies the seven conditions set forth in Sections 4.01 through 4.07 and meets the percentage test described in Section 4.08 of Rev. Proc. 76–47. The Service will also assume that educational loans are not taxable expenditures if a private foundation’s program satisfies the seven conditions set forth in Sections 4.03 through 4.09 and meets the percentage test described in Section 4.10 of Rev. Proc. 80–39.
   You have agreed that procedures in awarding grants and loans under your program will be in compliance with Sections 4.01 through 4.07 of Rev. Proc. 76–47 (without regard to the amendments to section 117(a) made by the Tax Reform Act of 1986), and Sections 4.03 through 4.09 of Rev. Proc. 80–39, respectively. In particular, the selection of individual grant or loan recipients will be made by a selection committee the members of which are totally independent and separate from the private foundation, the foundation’s creator, and the relevant employer. The grants or loans will not be used as a means of inducement to recruit employees nor will a grant or loan be terminated if the employee leaves the employer. The recipient will not be restricted in a course of study that would be of particular benefit to the relevant employer or to the foundation.
   Section 4.08 of Rev. Proc. 76–47 and Section 4.10 of Rev. Proc. 80–39 provide a percentage test guideline. They state that in the case of a program that awards grants or loans to children of employees of a particular employer, the program meets the percentage test if either of the following tests is met:
    (1) the number of grants or loans awarded under the program in any year to such children does not exceed 25 percent of the number of employees’ children who (i) were eligible, (ii) were applicants for such grants or loans, and (iii) were considered by the selection committee in selecting the recipients of grants or loans in that year, or
    (2) the number of grants or loans awarded under the program in any year to such children does not exceed 10 percent of the number of employees’ children who can be shown to be eligible for grants or loans (whether or not they submitted an application) in that year. Section 4.10 of Rev. Proc. 80–39 provides that if a private foundation’s employer-related program encompasses educational loans and scholarship or fellowship grants to the same group of eligible employees’ children, the percentage tests in Section 4.10 apply to the total number of individuals receiving combined grants of scholarships, fellowships, and educational loans.
   You have agreed that your program will meet the requirement of either the 25 percent or 10 percent percentage test of Section 4.08 of Rev. Proc 76–47 and Section 4.10 of Rev. Proc. 80–39 applicable to a program that awards grants and loans, respectively, to children of employees of a particular employer. Records should be maintained to show that you meet the applicable percentage test of Section 4.08 or 4.10.
(Selective)  This ruling is issued with the understanding that in applying the 10 percent test applicable to employees’ children set forth in Rev. Procs. 76–47 and 80–39, you will include as eligible only those children who meet the eligibility standards described in Rev. Proc. 85–51, 1985–2 C.B. 717. This ruling will remain in effect as long as the procedures in awarding grants and loans under your programs remain in compliance with Sections 4.01 through 4.08 of Rev. Proc. 76–47 (without regard to the amendments to section 117(a) made by the Tax Reform Act of 1986), and Section 4.08 through 4.10 of Rev. Proc. 80–39, respectively. If you enter into any other program covering the same individuals, the percentage test of Rev. Procs. 76–47 and 80–39 must be met in the aggregate.
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 addendum enclosed is an integral part of this letter. Because this letter could help resolve any questions about your exempt status and private 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)
Addendum Applies:
[20V]
8610
(Automatic)
Enclosures:
Form 5795
Publication 892
8620
(Selective)
Form 6018
8630
(Selective)
Addendum

Exhibit 7.21.5-26  (01-01-2003)
Letter 1081 (DO/CG)
EO Favorable Determination Letter 501(c)(3) — Presumption of Private Foundation Status

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).
 3
(Required)
 Our letter of [20V] requested information necessary to determine whether or not you are a private foundation within the meaning of section 509(a) of the Code. Since we have not received this information, we are, under section 508(b) of the Code, presuming you are a private foundation.
 5
(Automatic)
 This presumption, however, is rebuttable. If you meet the requirements of either section 509(a)(1) or (2) of the Code after you have existed for a sufficient time for us to make a final determination on your private foundation status, you may establish the fact by submitting a written request for a determination.
 7
(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.
 9
(Automatic)
 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). However, since you are presumed to be a private foundation, you are subject to excise taxes under Chapter 42 of the Code. You also may be subject to other Federal excise taxes. If you have any questions about excise, employment, or other Federal taxes, please let us know.
 11
(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 sections 2055, 2106, and 2522 of the Code.
 13
(Automatic)
 Based on the presumption that you are a private foundation, you are required to file Form 990–PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as a Private Foundation. Form 990–PF 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
 14
(Automatic)
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 return is not complete, so please be sure your return is complete, before you file it.
 15
(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.
 16
(Automatic)
 You are required to make your annual return available for public inspection within 180 days after the date of publication of its availability, and you must publish the notice of availability no later than the date required for filing the return. 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).
 17
(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.
 19
(Automatic)
 Since you have not provided the information needed to make a final determination of your private foundation status, it is considered by the Internal Revenue Service that you have not taken all reasonable steps to secure the determination you requested. Under section 7428(b)(2) of the Code, not taking all reasonable steps, in a timely manner, to secure the determination may be considered as a failure to exhaust administrative remedies available to you within the Service, and may preclude the issuance of a declaratory judgment in the matter under judicial proceedings.
5997
(Automatic)
 If we have indicated in the heading of this letter that an addendum applies, the addendum enclosed is an integral part of this letter. Because this letter could help resolve any questions about your exempt status and private 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)
Addendum Applies:
[20V]
8610
(Selective)
Enclosure:
Addendum

Exhibit 7.21.5-27  (01-01-2003)
Letter 1160 (DO/CG)
Notice of Transfer of Case to Correct District of Jurisdiction

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1
(Automatic)
 Thank you for your recent letter. The office named on the enclosure has the information necessary to reply, so we have sent your letter to them. They will answer you as soon as possible. If you write again, please address your letter to that office and attach the enclosed copy of this letter. Include your telephone number and the most convenient time to call in case they need more information.
 2
(Automatic)
 Please be sure to show your identifying number on all correspondence involving tax matters. On individual income tax returns, this is the social security number. On other tax returns, it is the employer identification number.
2001
(Automatic)
 Your letter has been sent to:
5998
(Selective)
 Wehave sent a copy of this letter to your representative as indicated in your power of attorney.
5999  If we can be of further assistance, please contact the person named above.
(Automatic) Sincerely yours,
8500
(Automatic)
Director, Exempt Organizations
8010
(Required)
Your Letter Dated:
[20V]
8610
(Automatic)
Enclosure:
Copy of this letter

Exhibit 7.21.5-28  (01-01-2003)
Letter 1194 (DO/CG)
Favorable Determination Letter under 501(c)(3) with 508(a) Effective Date Problem

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1
(Automatic)
 We considered your application for recognition of exemption from Federal income tax under section 501(a) of the Internal Revenue Code as an organization described in section 501(c)(3).
   Section 508(a)(2) of the Code provides 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.
 3
(Automatic)
 Section 1.508–1(a)(2)(i) of the Income Tax Regulations states that an organization seeking exemption under section 501(c)(3) of the Code must file the notice described in section 508(a) within 15 months from the end of the month in which the organization was organized. Such notice is filed by submitting a properly completed and executed Form 1023, exemption application, with the key District Director.
 5
(Required)
 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. Therefore, the provisions of section 508(a)(2) of the Code are applicable to you.
 7  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(c)(3) of the Code for years beginning [20V].
(Required)  We have further determined you are not a private foundation within the meaning of section 509(a) of the Code effective [20V], because
 11
(Selective)
you are an organization described in sections 509(a)(1) and 170(b)(1)(A)(i).
 12
(Selective)
you are an organization described in sections 509(a)(1) and 170(b)(1)(A)(ii).
 13
(Selective)
you are an organization described in sections 509(a)(1) and 170(b)(1)(A)(iii).
 14
(Selective)
you are an organization described in sections 509(a)(1) and 170(b)(1)(A)(iv).
 15
(Selective)
you are an organization described in sections 509(a)(1) and 170(b)(1)(A)(v).
 16
(Selective)
you are an organization described in sections 509(a)(1) and 170(b)(1)(A)(vi).
 17
(Selective)
you are an organization described in section 509(a)(2).
 18
(Selective)
you are an organization described in section 509(a)(3).
 19
(Selective)
you are an organization described in section 509(a)(4).
 23
(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.
 25
(Automatic)
 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).
 27
(Automatic)
 Since you are not a private foundation, you are not subject to the private foundation excise taxes under Chapter 42 of the Code. However, you are not automatically exempt from other Federal excise taxes. If you have any questions about excise, employment, or other Federal taxes, please let us know.
 29
(Required)
 Contributions made to you on or after [20V], are deductible under section 170 of the Code. Bequests, legacies, devises, transfers, or gifts to you or for your use made on or after [20V], are deductible for Federal estate and gift tax purposes if they meet the applicable provisions of sections 2055, 2106, and 2522 of the Code.
 30
(Required)
 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)([1V]) 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)([1V]) organization.
 31
(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.
 32
(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
 33
(Automatic)
return is not complete, so please be sure your return is complete before you file it.
 34
(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.
 35
(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.
 36
(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).
 37
(Automatic)
 If you do not agree with our determination as to your effective date of exemption, 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
 38 to file a power of attorney or tax information authorization with us.
(Automatic)  If you do not appeal this determination as to your effective date of your exemption 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 judgment or decree under this section shall not be issued in any proceeding unless the Tax Court, the Claims Court, or the district court
 40
(Automatic)
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."
ADDITIONAL PARAGRAPHS
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.
3277
(Selective)
 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 all portions 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.
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 addendum enclosed 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)
Refer Reply To:
[20V]
8011
(Required)
Form 990 Required:
[20V]
8012
(Required)
Accounting Period Ending:
[20V]
8013
(Required)
Addendum Applies:
[20V]
8610
(Automatic)
Enclosure(s):
Publication 892
8620
(Selective)
Form 6018
8630
(Selective)
Addendum

Exhibit 7.21.5-29  (01-01-2003)
Letter 1308 (DO/CG)
EO Letter to Organization Already Exempt or Under Group Ruling

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1
(Automatic)
 We received your application for recognition of exemption from Federal income tax.
 3
(Selective)
 Our records indicate that your organization was recognized as exempt from Federal income tax as an organization described in section 501(c)([2V])
 5
(Selective)
of the Internal Revenue Code on [20V]. Therefore, we find no need to consider this application. If we have misinterpreted your request, please let us know.
 7
(Selective)
 Our records indicate that your organization is a subordinate unit of the parent organization named above and is covered under group ruling number [20V]. Normally, a parent organization that is covered under a group ruling will add new or additional subordinate units to the group ruling. We suggest that you contact your parent organization for guidance in this matter. If you want a copy of the exemption letter, please contact your central organization. If you want an individual determination letter issued to you, please let us know.
 9
(Automatic)
 If we do not hear from you within 21 days from the date of this letter, we will assume you do not want us to consider your application further and will close your case.
   If you have any questions, please contact the person whose name and telephone number are shown in the heading of this letter.
3000–3099  Please mail the information requested in this letter to the following address:
(Selective) [Addresses and instructions for the use of these paragraphs will be provided by the District Office.]
5998
(Selective)
 We have sent a copy of this letter to your representative as indicated in your power of attorney.
5999  Thank you for your cooperation.
(Automatic) Sincerely yours,
8500
(Automatic)
Director, Exempt Organizations
8010
(Required)
Application Form Number:
[4V]
8011
(Selective)
Parent Organization:
[20V]
8012
(Selective)
[20V]
8013
(Selective)
[20V]

Exhibit 7.21.5-30  (01-01-2003)
Letter 1309 (DO/CG)
EO Development Letter to Organizations Applying under Incorrect Code Section

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1
(Required)
 We received your application for recognition of exemption from Federal income tax on Form [4V] under section 501(a) of the Internal Revenue Code as
 2
(Required)
an organization described in section 501(c)(^^). For the reasons shown on the enclosure, it is our opinion that you filed your application for exemption under the wrong Code section.
 3
(Required)
 However, it appears that you may qualify for exemption from Federal income tax under Code section 501(a) as an organization described in section 501(c)([2V]). If you want to apply for tax-exempt status under this Code section,
 4
(Required)
you must send us a new application on the enclosed Form ^^^^. Your new application will constitute a withdrawal of the original application. The supporting information you sent with the original application does not need to be sent again.
 5
(Automatic)
 If we do not receive the new application or hear from you within 21 days from the date of this letter, we will issue a proposed adverse determination based on your original application.
3000–3099  Please mail the information requested in this letter to the following address:
(Selective) [Addresses and instructions for the use of these paragraphs will be provided by the District Office.]
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 above.
   Thank you for your cooperation.
(Automatic) Sincerely yours,
8500
(Automatic)
Director, Exempt Organizations
8610
(Required)
Enclosure:
Form [4V]

Exhibit 7.21.5-31  (01-01-2003)
Letter 1310 (DO/CG)
EO Proposed Adverse Letter After No Response to Letter 1309

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1
(Required)
 On the above date we wrote you about your Form 1024, Application for Recognition of Exemption Under Section 501(a) or for Determination Under Section 120. In that letter we explained why it appeared that you filed your application for tax-exempt status under the wrong Code section. We suggested that you send us a new application under Code section 501(c)([2V]). However, to date we have not received the new application or a reply.
 3
(Required)
 We have considered your initial application and must propose an adverse determination on your application for tax-exempt status as an organization described in Code section 501(c)([2V]). The enclosed Form 6265, Statement of Proposed Adverse Determination, gives the applicable facts, law, and argument for our determination.
 5
(Automatic)
 The enclosed Publication 892, Exempt Organization Appeal Procedures for Unagreed Issues, explains your appeal rights. Unless we hear from you within 30 days from this date, this letter will be our final determination.
 7
(Automatic)
 In that event, you will be required to file Federal income tax returns on the form and for the years shown above. File these returns with your key District Director for exempt organization matters within 60 days from the date of this letter, unless a request for an extension of time is granted. File returns for later tax years with the appropriate service center indicated in the instructions for those returns.
3000–3099 Please mail the information requested in this letter to the following address:
(Selective) [Addresses and instructions for the use of these paragraphs will be provided by the District Office.]
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.
   Thank you for your cooperation.
(Automatic) Sincerely yours,
8500
(Automatic)
Director, Exempt Organizations
8010
(Required)
Our Letter Dated:
[20V]
8011
(Required)
Form:
[4V]
8012
(Required)
Tax Years:
[20V]
8610
(Automatic)
Enclosures:
Form 6265
Publication 892

Exhibit 7.21.5-32  (01-01-2003)
Letter 1312 (DO/CG)
Development Letter For EO Applications on Form 1023 or 1024

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1  Before we can recognize your organization as being exempt from Federal income tax, we must have enough information to show that you have met all legal requirements. You did not include the information needed to make that determination on your Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code.
(Automatic)  To help us determine whether your organization is exempt from Federal income tax, please send us the requested information by the above date. We can then complete our review of your application.
 2
(Automatic)
 If we do not hear from you within that time, we will assume you do not want us to consider the matter further and will close your case. In that event, as required by Code section 6104(c), we will notify the appropriate state officials that, based on the information we have, we cannot recognize you as an organization of the kind described in Code section 501(c)(3). As a result, the Internal Revenue Service will treat your organization as a taxable entity. If we receive the information after the response due date, we may ask you to send us a new Form 1023.
 3
(Automatic)
 In addition, if you do not provide the requested information in a timely manner, we will consider that you have not taken all reasonable steps to secure the determination you requested. Under Code section 7428(b)(2), your not taking all reasonable steps in a timely manner to secure the determination may be considered as failure to exhaust administrative remedies available to you within the Service. Therefore, you may lose your rights to a declaratory judgment under Code section 7428.
 4
(Selective)
 If more than [10V] days are necessary to obtain state approval of your amended governing instruments, please contact us to request an extension.
2003
(Selective)
 From our preliminary consideration of your application, it does not appear that your organization will qualify for exemption under Code section 501(c)(3), which covers organizations that are exclusively educational, charitable, or religious. Your organization more nearly resembles those that are exempt under section 501(c)([2V]). You may apply under that section instead of section 501(c)(3) by filing Form 1024, Application for Recognition of Exemption Under Section 501(a) or For Determination Under Section 120, or you may request consideration under both sections.
2006
(Selective)
 You do not need to submit copies of the charter, financial statements, or other documents that you have already submitted. If you choose not to file Form 1024, we will determine your status under section 501(c)(3) only. Please let us know your decision.
2007
(Selective)
 We are considering your application for tax-exempt status and find that it is incomplete. We need the following information over the signature of one of your principal officers:
2009
(Selective)
 We are concerned with abusive transactions in which charitable organizations construct, purchase or sell facilities financed by tax exempt bonds. Although the majority of bonds do not present problems, some do. Therefore, please help us rule favorably on your application by providing specific information about your method of operation and your use of bond proceeds.
2014
(Selective)
 Please have the enclosed Form 872–C signed by an authorized officer and return with this letter.
2020
(Selective)
 Will anyone use your facility other than for the purpose of directly carrying out your work? Will any of your directors or employees reside at your facility? If so, explain fully. Is the owner of the facility related to you in any way other than as landlord?
2021
(Selective)
 Will any officers, directors, members, or their relatives, receive a salary, reimbursement for expenses, or any other form of payment from your organization? If so, explain fully, and include the recipients’ names, their duties and the number of hours each week that they will devote to such duties. State the amount of compensation each will receive and the basis for arriving at the amounts of such payments.
2022
(Selective)
 Please submit copies of any brochures, pamphlets, newsletters, advertisements, or any other literature regarding your organization.
2023
(Selective)
 Please submit a chronology and description of your organization’s activities for the past year.
2024
(Selective)
 Please provide copies of any written leases, contracts, or agreements entered into by your organization.
2025
(Selective)
 Please submit any additional information you feel will help us better understand your organization.
2026
(Selective)
 A board of directors that includes representatives from the community, instead of a board consisting solely of family members, is an indication that the organization will serve public rather than private interests. Do you plan to expand your board to include non-family members? Provide details.
2028
(Selective)
 Please submit proposed income statements for your first two years of operation showing the expected amount and sources of receipts and, amount and reasons for expenditures.
2029  We wish to call your attention to section 5 of Revenue Procedure 84–46, Cumulative Bulletin 1984–1, page 541, which reads in part, as follows:
(Selective)  "02. Exempt status will be recognized in advance of operations if proposed operations can be described in sufficient detail to permit a conclusion that the organization will clearly meet the particular requirements of the section under which exemption is claimed. A mere restatement of purposes or a statement that proposed activities will be in furtherance of such purposes will not satisfy this requirement.
2030
(Selective)
 The organization must fully describe the activities in which it expects to engage, including the standards, criteria, procedures, or other means adopted or planned for carrying out the activities; the anticipated sources of receipts; and the nature of contemplated expenditures. Where the organization cannot demonstrate to the satisfaction of the Service that its proposed activities will be exempt, a record of actual operations may be required before a ruling or determination letter will be issued. In those cases where an organization is unable to describe fully its purposes and activities, a refusal to issue a ruling or determination letter will be considered an initial adverse
2031  determination from which administrative appeal or protest rights will be afforded."
(Selective) The information submitted with your application does not contain sufficient information in detail to fully describe your proposed activities. Therefore, please submit a much more detailed description of those activities.
2032
(Selective)
 Your organizing document empowers you to engage in a variety of activities of a commercial nature ordinarily carried on by businesses operated for profit, and which for that reason are inconsistent with the purposes and activities of an organization exempt under the Code section for which you applied.
2033
(Selective)
 Indicate the offices or positions held by the persons listed in Part III, item 4, of Form [4V].
2034
(Selective)
 Complete Schedule(s) [20V]. This schedule applies to your type of organization.
2035
(Selective)
 Have an authorized officer sign your application before you resubmit it.
2036
(Selective)
 Submit a list of your officers, description of their duties and amount of time devoted to each, and their annual compensation.
2037
(Selective)
 Furnish a copy of the Articles of Incorporation signed by the judge of probate.
2038
(Selective)
 The enclosed copy of your constitution/articles of association must be signed by two authorized officers and indicate the date of adoption.
2039
(Selective)
 Your Fiscal year (accounting period) shown in Part I, item [20V] of your application is inconsistent with the accounting periods given in the financial data you submitted. Please make sure you show the correct accounting period on the application form and submit financial data for years consistent with that accounting period.
2045  To be considered for tax-exempt status under section 501(c)(3), an organization must be both organized and operated exclusively for one or more of the purposes specified in that section. Also, its activities must be restricted to those permitted a section 501(c)(3) organization and its assets in operation and upon dissolution must be permanently dedicated to a section 501(c)(3) purpose.
(Selective)  Your organizational document does not meet the organizational test of section 501(c)(3) and, therefore, must be amended.
2046  You must submit a copy of the Articles of Amendment along with a certificate from the state authorities showing the date the amendments were approved by the state. In lieu of the actual certificate from the state, you may submit a statement signed by a principal officer certifying that the amendments submitted are a true, correct and complete copy of the amendments which have been submitted to and approved by the state. The following is an example of an acceptable statement.
(Selective) *****STATEMENT*****
2047
(Selective)
 This is to certify that the attached copy of the Articles of Amendment to the Articles of Incorporation is a true, correct and complete copy of the Articles of Amendment which were submitted to and approved by the state on (month, day & year).
SIGNED:
2048
(Selective)
 You must submit a copy of the amendments to your [20V] along with a statement signed by a principal officer certifying that the amendments as submitted are a true, correct, and complete copy of the amendments to that document as approved by your membership on (month, day, & year).
2049
(Selective)
 For an organization to qualify as one described in section 501(c)(3) of the Code, its governing instrument must contain certain provisions. The following will explain what you must do to meet this requirement.
2050
(Selective)
 Section(s) [20V] of your organizational document empower(s) your organization to engage in activities that are inconsistent with the purpose and activities of an organization exempt under section 501(c)(3) of the Code.
2051
(Selective)
 It will be necessary for you to amend your [20V]. Please add the following items to your existing provisions.
2052
(Selective)
 It will be necessary for you to amend your [20V]. Please delete the following section(s).
2053
(Selective)
 It will be necessary for you to amend your [ 20V]. Please delete the section(s) listed below and add the following provisions:
2055
(Selective)
 Since your organization is not incorporated, please submit a copy of your [20V] signed and dated by an authorized officer
2056
(Selective)
  "This organization is organized exclusively for [20V] purposes within the meaning of section 501(c)(3) of the Internal Revenue Code."
2058
(Selective)
 Amendments made by corporations must be approved and filed with the appropriate state official. Please submit a copy of the approved amendment as soon as you receive it from the appropriate state agency.
2059
(Selective)
 To ensure that your assets are dedicated to an exempt purpose, you should add the following paragraph(s) to your dissolution provision: "However, if the named recipient is not then in existence or no longer a qualified distributee, or unwilling or unable to accept the distribution, then the assets of this organization shall be distributed to a fund, foundation or organization which is organized and operated exclusively for the purposes specified in section 501(c)(3) of the Internal Revenue Code."
2061
(Selective)
 For an organization to qualify as one described in section 501(c)(3) of the Code, its governing instrument must contain certain provisions:
2062
(Selective)
 It will be necessary for you to amend your Articles of Incorporation.
2063
(Selective)
 It will be necessary for you to amend your Articles of Association.
2064
(Selective)
 It will be necessary for you amend your bylaws.
2066
(Selective)
 This organization is organized exclusively for educational purposes within the meaning of section 501(c)(3) of the Internal Revenue Code.
2067
(Selective)
 This organization is organized exclusively for charitable and educational purposes within the meaning of section 501(c)(3) of the Internal Revenue Code.
2068
(Selective)
  "Notwithstanding any other provision of these articles, the [20V] shall not carry on any other activities not permitted to be carried on (a) by a [20V] exempt from Federal income tax under section 501(c)(3) of the Internal Revenue Code of 1986 (or the corresponding provision of any future United States Internal Revenue law) or (b) by a [20V] contributions to which are deductible under section 170(c)(2) of the Internal Revenue Code of 1986 (or corresponding provision of any future United States Internal Revenue law)."
2069
(Selective)
" Upon the dissolution of this [20V], assets shall be distributed for one or more exempt purposes within the meaning of section 501(c)(3) of the Internal Revenue Code (or corresponding section of any future tax code), or shall be distributed to the federal government, or to a state or local government, for a public purpose. Any such assets not so disposed of shall be disposed by the Court of Common Pleas of the county in which the principal office of the [20V] is then located, exclusively for such purposes or to such organization or organizations, as said Court shall"
2070
(Selective)
"determine, which are organized and operated exclusively for such purposes."
2072  Amendments made by corporations must be endorsed and/or filed by the appropriate state officer:
   California — Secretary of State of the State of California
 Hawaii — Department of Regulatory Agencies
(Selective) Please submit a copy of the endorsed amendment as soon as you receive it from the appropriate state agency.
2085
(Selective)
 A private foundation cannot be exempt from Federal income tax under Code section 501(a) unless its governing instrument satisfies the provisions of section 508(e) or is considered to satisfy the requirements of that section because of state law. You must comply with the regulations issued under section 508 to be exempt from tax and for contributions to be deductible. Please refer to Revenue Ruling 70–270, 1970–1 C.B. 135, for language acceptable under section 508(e).
2090
(Selective)
 State whether you will intervene in any political campaign on behalf of, or in opposition to, any candidate for public office. If so, will this be your primary activity? What percentage of your time and funds will you devote to intervening in political campaigns?
2095  Describe the nature and extent of your lobbying activities, specifically:
   —The lobbying activities, direct or indirect, that you engaged in or will engage in; and
   —The part of total staff time that is spent in carrying on those activities;
(Selective)  —The amount of money appropriated and spent for those activities.
2096
(Selective)
 Have you filed Form 5768, Election/Revocation of Election by an Eligible Section 501(c)(3) Organization to Make Expenditures to Influence Legislation (Under Section 501(h) of the Internal Revenue Code)?
2100
(Selective)
 Describe in detail the requirements for membership in your organization and show the number of your active members. State whether your services are open to the public. If so, describe how you publicize your services and any criteria for admittance. State whether you have a distinct religious history. If so, describe in detail.
2101
(Selective)
 Describe any formal code, doctrine, or tenets that members must follow. Also, describe any discipline imposed on members. Describe the religious training of your deacons, ministers, or pastor. Was (were) your minister(s), deacon(s), or pastor formally ordained after a prescribed course of study? State if you regularly provide formal religious instruction. If so, describe the training and indicate the age groups(s) it is provided.
2102
(Selective)
 State whether you paid a fee for a church charter. If so, furnish the name and address of the organization to which you paid the fee, a copy of the document, and a description of the circumstances surrounding the chartering. Provide copies of all leases, contracts, and rental, loan, or financing agreements you have entered into.
2103  Describe in detail all properties you own and indicate how each property is used.
   —If property is used for both church and nonchurch affairs, show the percentage of each kind of use.
(Selective)  —For each property that generates rental or other income, show the kind and annual amount of that income.
2104  Describe your place of worship, giving the following information:
   —The address of the property;
   —The name of the owner; and
   —A description of the property.
(Selective)  If you have no regular place of worship, please state where your services are held, and how the site is selected.
2105
(Selective)
 Account for any salaries or other compensation paid by your organization with a description of the duties and responsibilities of each recipient. State how many hours per week your minister, pastor, or officers each devote to church work. If your minister or pastor is otherwise employed, indicate by whom employed, the nature of the employment, and the hours devoted to that employment.
2106
(Selective)
 State whether any individual receives or will receive a parsonage allowance. If so, explain in detail the circumstances under which it is given. Provide copies of all your literature, bulletins, brochures, pamphlets, and advertising. State whether your members are required to renounce other religious beliefs. If not, please explain.
2107
(Selective)
 List any property or funds you provide and describe how it or they are used. List any financial records the organization maintains (for example, checkbook only, cash receipts and cash disbursements journal, etc). List the religious services you have conducted since your inception and the approximate number of people attending each service.
2108
(Selective)
 State whether you will issue licenses or otherwise ordain ministers (or their equivalent), or issue church charters. If so, please describe in detail the requirements and qualifications needed to be so licensed, ordained, or chartered. Describe your religious hierarchy or ecclesiastical government. Describe your sacerdotal functions.
2109
(Selective)
 Show the name and amount contributed by each substantial contributor. Show the names and the relationship to your organization of anyone connected with your organization who has taken a vow of poverty. Give the name of anyone who has assigned income to you or made substantial contributions of money or property. List any officers, directors, or trustees related by blood or marriage.
2110
(Selective)
 State whether any of your officers, directors, or trustees have business relationships with you or financial interests in businesses that do business with you. List the religious services, benefits, or products (for example, religious goods, publications, instructions, or ordination certificates) you provide that are related to your religious functions. Give the present size of your congregation.
2111
(Selective)
 List any controls the congregation has over the pastor or any voice it has in choosing the pastor. Indicate how often you hold services. What are the qualifications to be eligible to conduct these services? Describe in detail the qualifications and religious training you will require of ministerial candidates. Describe how ministerial candidates are selected.
2112
(Selective)
 Describe in detail your requirements for chartering a church and the obligations of an organization receiving such a charter. State how many ministers you have ordained or licensed. State how many applications for ordination you have rejected. State whether you engage in activities that attempt to influence legislation or intervene in any way in political campaigns. If so, please explain.
2113
(Selective)
 State whether anyone will use your facility other than for directly carrying out your work. Will any of your directors or employees reside at your facility? If so, explain fully. Is the owner of the facility related to you in any way, other than as a landlord?
2114
(Selective)
 State how you will use receipts in excess of operating expenses.
2170
(Selective)
 If you are organized to operate a bookstore or to engage in publishing activities of any nature (printing, publication, or distribution of your own material, or that printed or published by others and distributed by you), explain fully the nature of the operations, including whether sales are or will be made to the general public, the kind of literature involved, and how such activities are related to your stated purposes.
2171
(Selective)
 State whether your organization has literature of its own. If so. list several of the chief works, giving the author and title.
2172
(Selective)
 Explain how and by whom your publishing projects are selected. What are the criteria used for making selections?
2173
(Selective)
 State how your publishing activities further your exempt purposes.
2174
(Selective)
 State how your publishing activities are distinguishable from those of a for-profit enterprise.
2175
(Selective)
 State whether your literature is distributed free of charge. If not, what basis is used in determining the sales price?
2176
(Selective)
 Describe your method of distributing your literature.
2177
(Selective)
 Indicate whether your literature will be copyrighted. If so, in whose name will the copyright be held?
2190
(Selective)
 Describe the requirements for admission to your staff. Are privileges available to all qualified doctors in the community? If not, please explain.
2191
(Selective)
 State whether admission is or will be denied because of the patient’s inability to pay. Describe your admissions policy and requirements.
2192
(Selective)
 State whether you maintain an emergency room open to all persons. If not, please explain. Are patients refused emergency care because of inability to pay? If yes, explain.
2193
(Selective)
 State whether you operate a community hospital supported by contributions from the general public or public grants from a city, county, or state. If so, furnish copies of any contracts, grants, applications, etc.
2194
(Selective)
 State whether any of your facilities, such as x-ray laboratories or drug stores, will be operated by or rented to others. If so, describe fully the arrangements for use, percentage of your building it represents, terms of occupancy, etc. Furnish copies of pertinent leases and contracts. Are any of the above arrangements with directors, principal officers, or persons who control your organization, either directly or indirectly? If so, give specific details.
2210
(Selective)
 Describe your facilities and state who may participate. Will you charge admission fees?
2211
(Selective)
 Describe how you carry on or plan to carry on your educational activities, (such as by panels, discussions, lectures, forums, radio or television programs, or through various cultural media such as museums, symphony orchestras, art exhibits, etc.).
2212
(Selective)
 Submit copies of any pertinent contracts or agreements. Show salaries paid to instructors or lecturers and how amounts of salaries are determined.
2213
(Selective)
 List the persons on your faculty or teaching staff and the qualifications of each needed to occupy the position.
2214
(Selective)
 State the standards or qualifications you use to select the faculty or teaching staff.
2215
(Selective)
 Attach a schedule of your tuition and fee charges.
2216
(Selective)
 Provide a copy of the application form used in applying for admission to your school.
2235
(Selective)
 If that statement is not contained in your governing instrument, submit a copy of the resolution adopted by your governing body and signed by principal officers signifying approval of the resolution. The following is a sample of acceptable language:
2236
(Selective)
  "The "X" school admits students of any race, color, and national or ethnic origin to all the rights, privileges, programs, and activities generally accorded or made available to its students and does not discriminate on the basis of race in administration of its educational policies, admissions policies, scholarship and loan programs, and athletic and other school administered programs."
2237
(Selective)
 Every school must include a statement of its racially nondiscriminatory policy toward students in all brochures and catalogues dealing with student admissions, programs, and scholarships. A statement substantially similar to the following will be acceptable. "The "X" school admits students of any race, color, and national or ethnic origin."
2238  Further, a reference to the policy must be included in other written advertising used to inform prospective students of programs. The following reference will be acceptable:
(Selective) "The "X" school admits students of any race, color, and national or ethnic origin."
2239
(Selective)
 Furnish copies of your curriculum, brochures, catalogues, and other material used to solicit students and publicize scholarships programs.
2240
(Selective)
 Do you discriminate against prospective students or applicants for your faculty or staff positions on the basis of race? If so, please explain.
2241
(Selective)
 Do all your students, regardless of race, have equal opportunity to enjoy all the rights and privileges available and to engage in the full curriculum offered by your school? If not, explain.
2242
(Selective)
 From what geographic area(s) do you draw most of your students? What is the community served by your school? What is the approximate racial composition of the community?
2243
(Selective)
 Describe the facilities where your educational activities are carried on and include a statement describing any other facilities that you operate. Provide a copy of any leases or other agreements.
2244
(Selective)
 Provide a copy or outline of your curriculum.
2245
(Selective)
 You must comply with all the requirements of Revenue Procedure 75–50, 1975–2 C.B. 587, described below. You required to:
2246  —Have a policy of racial nondiscrimination toward students.
(Selective)  —Include a statement of that policy in ALL your brochures and catalogues dealing with student admissions, programs, and scholarships, and include a reference to that policy in other written advertising that you use to inform prospective students of your program.
2247
(Selective)
 —Make that policy known to the general community served by your school and be prepared to demonstrate that you have publicly disavowed or repudiated any statements purported to save been made on your behalf after November 6, 1975, that are contrary to your publicity of a racially nondiscriminatory policy toward students, to the extent that your school or its principal officials are aware of those statements.
2248  —Operate according to that policy.
   —Offer all financial aid according to that policy.
(Selective)  —Provide annual certification by an authorized official in conjunction with Form 990 or Form 5578 that, to the best of your knowledge and belief, your school has satisfied the requirements of Revenue Procedure 75–50.
2249
(Selective)
 One way to make your nondiscriminatory policy known to the general community is to publish a notice annually in a newspaper of general circulation. The notice must occupy at least three column inches. It must be captioned in at least 12-point bold-face type with the words, "NOTICE OF NONDISCRIMINATORY POLICY AS TO STUDENTS" . Its text must be printed in at least 8-point type.
2250  The following notice is worded acceptably. Consult the newspaper to establish the correct size of the notice and of the type.
(Selective) NOTICE OF
NONDISCRIMINATORY POLICY
AS TO STUDENTS
2251
(Selective)
  The M school admits students of any race, color, national, and ethnic origin to all rights, privileges, programs, and activities generally accorded or made available to students at the school. It does not discriminate on the basis of race, color, national, and ethnic origin in administration of its educational policies, admissions policies, scholarship and loan programs, and athletic and other school-administered programs.
2253   You will be required to keep the following:
    —Records showing the racial composition of the student body, faculty, and administrative staff for EACH academic year.
(Selective)   —Records showing that scholarship and other financial assistance is awarded on a racially nondiscriminatory basis.
2254   —Copies of all brochures, catalogues, and advertising dealing with student admissions, programs, and scholarships. Schools advertising nationally or in a large area of the United States need only keep records showing when and in what publications their advertisements were placed.
(Selective)   —Copies of all materials used by or on behalf of your school to solicit contributions.
2255
(Selective)
 Revenue Procedure 75–50 (copy enclosed) sets forth the guidelines and record keeping requirements for determining whether private schools that are applying for recognition of exemption from Federal income tax under section 501(c)(3) of the Internal Revenue Code or are presently recognized as exempt from tax, have racially nondiscriminatory policies as to students. Exemption may not be recognized until you comply with all of the provisions of the revenue procedure.
2256   Please submit the following information regarding your school:
    —Has your organization ever been denied exemption?
    —Do you now or have you ever had any black or other minority students or faculty members? If yes, please give name(s) and address(es).
(Selective)   —Does the school have an active recruitment program to secure students? Do you have any active program to secure blacks or other minorities?
2257   —Does the school offer any scholarships, grants-in-aid or have you waived tuition for anyone?
    —When is the school’s annual registration period? How is that period made known?
(Selective)   —Does the school communicate with minority leaders in the community? If yes, describe how and give examples.
2258   —Does the school have any meaningful advertisements stressing their open admissions policy?
    —Has the school ever received textbooks from the state? If so, when? Do they still receive them? If not, why not.
(Selective)   —Does the school feel that the surrounding community is aware of its open policy? If yes, why does it feel that way?
2259   —Does the school have a formal non-discriminatory administrative policy? If yes, please submit copies (include admissions forms, employment applications, catalogues, yearbooks, etc.).
    —Please submit a schedule of tuition and fees.
(Selective)   —What was the date the school was formed? What has been its enrollment, year by year, from inception to present.
2260   1. If you are a subsidiary of, affiliated with, or controlled by an exempt organization, please give us:
    —The name of the exempt organization.
    —A brief statement of the exempt organization’s purpose and activities.
    —A statement explaining whether its purposes or activities have changed during the exempt organization’s period of exemption.
    —A description of your relationship with the exempt organization.
(Selective)   —A copy of the exempt organization’s exemption determination letter.
2261   2. Will you be managed by a for-profit entity? If yes, please provide the following information:
    —The name of the for-profit entity.
    —A description of the for-profit entity’s experience with managing similar facilities.
    —The names of the officers, directors and principal shareholders of the for-profit entity.
    —The names of the five highest paid employees of the for-profit entity.
(Selective)   —A description of any business interests or other relationships between
2262   the for-profit entity and its officers, directors or principal shareholders and your officers, directors or trustees, other than by virtue of the management agreement.
    3. Give us a statement telling whether you will manage the facility yourself.
    4. Give us a description of the experience, if any, your officers and directors have in the management of similar facilities.
(Selective)   5. If you will be managed by another entity, whether for-profit or exempt,
2263   please provide the following information:
    —A statement indicating whether the manager was selected by competitive bidding.
    —If the manager was not selected by competitive bidding, a description of the selection process.
    —A statement showing who sets rates, you, the manager, or someone else.
    —A statement showing who has authority to hire and fire personnel.
    —A description, including amounts, of the manager’s authority to spend without your prior approval.
(Selective)   —A description of your compensation formula for the manager.
2264   —A description of any contract provisions that penalize you for terminating the manager’s contract.
    6. If you will be managed by an exempt organization other than yourself, please provide the following information:
    —A description of the exempt organization’s experience in managing similar facilities.
    —A copy of its exemption letter.
(Selective)   7. Give us brief resumes for the officers, directors, and principal sharehold-
2265   ers of any party you have contracted with to provide services to create or redevelop the facility, such as the contractor, developer, architect, and interior decorator. Describe any business interest or relationship (aside from the bond transaction) between those officers, directors, and principal shareholders and you, your officers, directors, or trustees.
    8. If the facility will be purchased, rather than constructed, please provide the following information:
    —The net income for each of the last four years.
(Selective)   —A statement disclosing whether the facility currently is in, or has
2266   been in, bankruptcy.
    —A statement showing when the seller purchased the facility.
    —The name of the seller and the names of the seller’s principal shareholders, officers and directors.
    —A description of any business relationships (aside from the subject transaction) between the seller, including the seller’s officers, directors or principal shareholders and you, including your officers, directors or trustees.
    —A statement showing whether an appraisal was performed.
(Selective)   —The facility’s occupancy rate for the last four years.
2267   —The occupancy rate projected in the feasibility study for the facility after it is operational.
    —A description of the methods used in the appraisal to calculate the facility’s value.
    —If comparable properties are used to calculate value:
    a. The date of each comparable property’s sale.
b. Each comparable property’s zoning classification.
c. The location of each comparable property.
(Selective)   9. Provide the following information for each of your officers, directors and
2268   trustees:
    —The business and home address.
    —A brief resume describing their academic and business interests as they relate to your exempt purposes and activities.
    —A description of any services or goods to be provided to you.
(Selective)   —The name of any other entity that is currently applying for exempt status, has received exempt status within the last two years, or plans on applying for exempt in the next year for which each serves as an officer, director, or trustee.
2269   10. Is a certificate of need required for you to construct or redevelop your proposed facility?
    —If yes, please provide a copy of the certificate.
    11. Are any of your officers, directors or trustees also officers, directors or trustees of any other organization that is currently the beneficiary of tax-exempt bond financing?
(Selective)   —If yes, please provide the name of each organization, the relationship between the parties, and a brief description of the organization’s
2270   purposes and activities.
    12. Provide a description of any relationship you have with a municipal government, other than through bond financing related transactions.
    13. If a facility is purchased or constructed, please provide the following information:
    —The size of the facility in square feet.
(Selective)   —The amount of square footage that you will use in the performance of your exempt activity.
2271   —The amount of square footage that a governmental unit will use.
    —The amount of square footage that private parties will use.
    Examples — medical office building for non-staff physicians
— privately run cafeteria for your employees
— privately run book store for your students
    —The amount of square footage that will be used by an exempt organization that is not exempt under section 501(c)(3) of the Code.
    —The amount of square footage that your for-profit subsidiaries will use.
(Selective)   —The amount of square footage that will be used by a business conducted
2272   by substantially all volunteer labor or selling goods that were donated.
    —A statement indicating whether you expect to file Form 990–T for any unrelated business use of the facility.
      a. If you do expect to file Form 990–T, please tell us if the unrelated business use relates to any portion of the facility that is not financed with tax-exempt bonds.
(Selective)   14. Answer the following questions if you are a hospital receiving financing from tax-exempt bonds.
2273   —Are you accredited by the Joint Commission of Hospital Accreditation?
    —Are you using the bonds to build a hospital facility?
    15. If you are part of an affiliated group of organizations, please provide the following information. (The affiliation rules for the $150 million volume cap apply to all organizations and their related entities, even if there is no legal control. However, since certain hospitals are not subject to the $150 million volume cap, hospitals that are beneficiaries of bonds should answer this question only if they answered "no" to both questions in 14 above.)
(Selective)   —A statement showing which organizations have tax-exempt bonds
2274   outstanding.
    —A statement showing the amount of bonds each organization has outstanding, including pre-1986 bonds.
    16. Please provide the following information about the issuance of tax-exempt bonds:
    —The maturity date of the bonds.
    —A statement by a qualified appraiser providing the anticipated economic life of the facility.
(Selective)   —A statement indicating whether the tax-exempt bonds financed facility
2275   will contain sky boxes, whether gambling will be conducted at the facility, or whether store sales of alcoholic beverages will be conducted as a principal business.
    —A statement indicating whether notice was given and a public hearing held concerning the tax-exempt bond issuance.
    —A statement showing the total amount of the tax-exempt bond issuance and the dollar amount of issuance costs to be paid out of the tax-exempt bond proceeds.
(Selective)   —A statement showing the amount of bond proceeds that will be held in a reserve fund.
2276   17. Has the facility to be financed with tax-exempt bonds already been constructed or paid for?
    —If yes, please describe the source of the funds used for construction.
    18. If the bonds have been issued, explain how and when the proceeds have been spent. Disclose the interest rate earned on any invested bond proceeds other than a reasonably required reserve fund.
(Selective)   19. Will you use the tax-exempt bond proceeds to refund a previously issued
2277   bond? If your answer is yes, please provide the following information:
    —The date the refunded bonds were issued.
—A statement indicating whether this is the first refunding of the bonds.
—A statement indicating when the bonds will be refunded.
(Selective)   20. If the tax-exempt bonds are federally guaranteed, please state the name of the agency that has or will guarantee the bonds.
2300
(Selective)
 Describe how the rental rates are determined. Are they above, below, or at cost?
2301
(Selective)
 Describe any recreational and social programs for residents.
2302
(Selective)
 Describe the area immediately surrounding the housing project. Also, please describe the equipment or facilities.
2303
(Selective)
 Describe the socio-economic condition of the neighborhood. Do residents have problems obtaining adequate housing?
2304
(Selective)
 List any steps taken to involve the community or the residents in this project.
2305
(Selective)
 Give your criteria for admission.
2306
(Selective)
 Explain how you plan to (1) lessen neighborhood tensions and (2) combat community deterioration. Describe the facilities and services provided the residents, including the residential capacity of the home. Also give details as to how these facilities and services will meet the special needs of the elderly.
2320
(Selective)
 State how many children are enrolled in the day care center. How many children has the state authorized the center to care for and what is the normal attendance?
2321
(Selective)
 Explain whether the center uses a sliding scale of fees based on the parents’ income. If so, provide a schedule showing how many fall into each category. Include a copy of the fee schedule.
2322
(Selective)
 State whether there is a maximum income limit for the childrens’ parents. If so, what is the limit?
2323
(Selective)
 Explain how the fees charged compare to the fees charged by "for profit" day care centers in the same general area.
2324
(Selective)
 State whether the center is located in the kind of neighborhood where all residents and, accordingly, all children in the day care center can be described as needy or destitute. If so, provide information on the parents’ income level.
2325
(Selective)
 State whether day care services are limited to members of one or more sponsoring churches.
2326
(Selective)
 Explain the center’s admittance policy. Is the policy to serve the community on a first-come, first-served basis? How is the admittance policy communicated to the community?
2327
(Selective)
 State whether there is a waiting list or if all applicants have been accommodated. Has anyone been refused? If so, what were the reasons?
2328
(Selective)
 State what educational services are furnished.
2329
(Selective)
 Indicate whether your day care facility is located in a home owned or rented from an officer or parent. If so, submit an estimate of the fair market value of the property. What is the monthly rental and how was the amount determined? Send a copy of the lease agreement.
2330
(Selective)
 Show your student-teacher ratio.
2331
(Selective)
 Give a breakdown of staff salaries.
2332
(Selective)
 List the teachers’ credentials and degrees.
2333
(Selective)
 State what special equipment or facilities you have to encourage learning. Please describe the equipment or facilities.
2334
(Selective)
 List a typical day’s activities for the children.
2335
(Selective)
 Send a copy of your application for admission.
2336
(Selective)
 List your hours of operation.
2337
(Selective)
 State whether you have a regular faculty.
2338
(Selective)
 State whether you have a regularly enrolled student body at the center.
2339
(Selective)
 Explain whether you have a regular curriculum.
2340
(Selective)
 Give the age range of the children you accept at the center.
2360
(Selective)
 Describe the facilities and services provided the residents, including the residential capacity of the home. Also give details as to how these facilities and services will meet the special needs of the elderly.
2361
(Selective)
 Give the criteria for admission to the home.
2362
(Selective)
 Furnish a schedule of charges for admission (entrance fee and monthly charge) and whether payable on a lump sum or installment basis.
2363
(Selective)
 State whether all residents will be required to pay fees. If not, please explain.
2364
(Selective)
 Explain how charges are or will be determined.
2365
(Selective)
 Explain your policy with regard to residents who become unable to pay your fees.
2366
(Selective)
 Have you applied for Federal financing? If so, please furnish copies of applications, contracts, etc.
2367
(Selective)
 Furnish copies of admission applications and any other literature or brochures that describe the home, its facilities, and admission requirements.
2368
(Selective)
 State whether your organization provides some form of health care. Explain.
2369
(Selective)
 Compare your rates with those of similar facilities in your area.
2370
(Selective)
 Explain how your facilities are designed to meet some combination of the physical, emotional, recreational, social, religious, and similar needs of the aged.
2371
(Selective)
 State whether you have established any reserves for future expenditures.
2372
(Selective)
 State whether admission will be limited to persons of a particular age.
2373
(Selective)
 State how the rents are determined. Are they above, below, or at cost? Are the rents within the financial reach of a significant segment of the community’s elderly?
2374
(Selective)
 Describe the services provided to residents. Will they be provided at the lowest feasible cost? If so, please explain.
2390
(Selective)
 Explain how your facilities are designed to meet some combination of the physical, emotional, recreational, social, religious, and similar needs of the handicapped.
2391
(Selective)
 State whether the rents are within the financial reach of a significant segment of the community’s handicapped? How are rates determined?
2392
(Selective)
 State whether you have arrangements with local and Federal welfare units, sponsoring organizations, or others to absorb all or part of the cost of maintaining residents who become unable to pay their regular charges. If so, please explain.
2410
(Selective)
 Describe the research projects engaged in or planned by your organization.
2411
(Selective)
 Explain how and by whom research projects are determined and selected.
2412
(Selective)
 State whether you plan to have contract or sponsored research. If so, furnish names of sponsors or grantors, terms of contracts or grants, and copies of any executed contracts or grants.
2413
(Selective)
 Explain what disposition will be made of the results of your research. Will you give preference to any organization or individual either as to results or time of release? If so, please explain.
2414
(Selective)
 State who will retain ownership or control of any patents, copyrights, processes, or formulas resulting from your research.
2415
(Selective)
 Furnish copies of any publications showing reports of your research activities. Submit only reports of your activities or those conducted on your behalf, as distinguished from those of your creators or members conducted in their individual capacities.
2430
(Selective)
 We received your request for a ruling. However, we are unable to process your request at this time because you did not submit certain information needed to comply with section 6110 of the Internal Revenue Code regarding public disclosure of rulings.
2431
(Selective)
 Before we can process your ruling request, we must have the following information:
2432
(Selective)
 —A copy of the request and of supporting documents showing, in brackets, the parts you suggest be deleted in accordance with Code section 6110(c). Instead of these copies, you may submit a statement that no deletions need to be made except names, addresses, and taxpayer identifying numbers.
2433
(Selective)
 —A separate statement in support of the deletions suggested, showing which exemption provided by Code section 6110(c) applies to each bracketed part.
2434
(Selective)
 —A declaration signed by the person or persons by whom or on whose behalf the request for ruling is made, in the following form:
    "Under penalties of perjury, I declare that I have examined this request, including accompanying documents, and, to the best of my knowledge and belief, the facts presented in support of the requested ruling are true, correct, and complete."
2440
(Selective)
 In addition to the foregoing, we note that your request for a ruling is incomplete in certain respects. To complete our consideration of your request, we will need the following information over the signature of one of your principal officers:
2441
(Selective)
 Describe the class of eligibles or potential recipients of your organization’s grants. Describe any restrictions or limitations on who may apply or whom your organization will consider as possible grantees.
2442
(Selective)
 State who selects the recipients from the class of eligibles. Be specific. If these people are related in any way to your organization, give complete details.
2443
(Selective)
 State whether any relatives of members of the selection committee are eligible for scholarship assistance. If so, please show:
    —Approximately how many members there are in the class of eligibles each year;
    —How many relatives of selection committee members are currently qualified; and
2444
(Selective)
   —What procedures are followed to ensure that no selection committee member will derive any direct or indirect benefit if one potential grantee is selected instead of another. Explain fully.
2445
(Selective)
 List and describe in detail all criteria used by your selection committee in selecting recipients from the class of eligibles.
2446
(Selective)
 Explain if any grants will be made to spouses, children, descendants, spouses of descendants, or other persons related to any officers or directors of your organization.
2447
(Selective)
 Describe how the scholarship program is publicized to ensure that all eligible individuals are likely to be informed that scholarship aid is available.
2448
(Selective)
 State whether all grants will be limited to students who will be attending educational institutions as defined in Code section 170(b)(1)(A)(ii).
2449
(Selective)
 State whether your organization provides aid to students both as outright grants and as loans. If both are to be provided, what criteria will you use to determine which members of the class of eligibles will receive scholarship grants and which will receive loans? If loans are made, give the interest rates, if any, how the rates are determined, and the repayment terms of the loans.
2450
(Selective)
 Explain in detail your follow-up procedures to ensure that all scholarship funds will be used for the stated purposes.
2451
(Selective)
 Give the procedures you will follow if you discover a misuse of those funds.
2452
(Selective)
 Submit a copy of the will.
2453
(Selective)
 State whether the trust has a separate formative document or bylaws. If so, please provide a copy of each.
2454
(Selective)
 You have indicated that scholarship grants are made payable to the recipient and the respective university. Please explain more fully what this means. Are the checks made payable to the parties jointly with the students endorsing them over to the schools?
2455
(Selective)
 Indicate whether any scholarship requests have already been finalized. If so, please list each scholarship given, including recipient, amount, and date. Were the procedures explained in your answers to the above questions the same for these early scholarships? Explain fully.
2456
(Selective)
 Specify what reports will be required of the recipients and/or of the schools, and indicate whether these reports are submitted each semester, yearly, or when.
2457
(Selective)
 Please submit copies of any grant proposals and indicate their status.
2472
(Selective)
  Your application was filed more than 15 months following the month in which you were organized. Since you do not appear to be eligible for any of the exceptions under section 508 of the Code, your exemption under section 501(c)(3) (if your application is approved) would be effective only from the date you submitted your application, [20V].
2473
(Selective)
 If you have good cause for late filing you may request relief from the timely filing requirements of section 508, as provided by section 1.9100–1 of the Income Tax Regulations. (See Revenue Procedure 79–63, published in Cumulative Bulletin 1979–2, page 578.)
2474
(Selective)
 If you believe you meet the criteria for exception from this requirement and desire to request consideration, submit your request explaining your reason(s) for late filing. The request should specify that you want relief from section 508 of the Code, cite section 1.9100–1 of the Income Tax Regulations, and be signed by a principal officer.
2475  Revenue Procedure 79–63 sets forth instructions to taxpayers for submitting requests for extensions of time and includes the factors to be taken into consideration in determining whether relief will be granted. Briefly, the taxpayers must submit specific information regarding:
(Selective)   —Due diligence of the taxpayer to determine the existence of and requirements for the election or application and the action taken, if any, to make proper election or application;
2476   —Prompt action by the taxpayer after discovery of a deadline that could not be or was not met to request an extension within a reasonable time;
    —Intent of the taxpayer to make the application or election on time and whether the failure was due to mere inadvertence or to significant intervening circumstances beyond the taxpayer’s control;
(Selective)   —Whether granting the extension would cause prejudice to the interests of the Government
2477   or cause undue administrative burden; and
(Selective)   —Whether granting the extension would be consistent with the underlying statutory and regulatory objectives of the election or application process.
2478
(Selective)
 Rev. Proc. 79–63 elaborates on these factors and also states that the information submitted should include a chronological account of the events leading up to the failure to meet the deadline, along with the names and current addresses of persons having knowledge or information about the events, affidavits or statements from them, and all relevant documents. A perjury statement signed by a taxpayer (a declaration signed by a taxpayer’s representative is not sufficient for this purpose) is also required.
2479
(Selective)
 You requested relief under section 1.9100 of the Income Tax Regulations.
2480
(Selective)
 You requested relief under section 1.9100 of the Income Tax Regulations. Please state in writing whether you want a conference in the event of a proposed adverse decision.
2481
(Selective)
 Please submit the information required by Revenue Procedure 79–63. A copy is enclosed. Be sure to include the statement required by section 4.03.
2482
(Selective)
 An alternative to requesting relief would be to apply for exempt status under Code section 501(c)(4) for the period prior to the effective date of your exemption under section 501(c)(3). The exemption under section 501(c)(4) would cover the period from the date you were formally organized to the postmark date of your application on Form 1023, [20V]. Contributions to section 501(c)(4) organizations are not deductible. If you want to apply for exemption under section 501(c)(4), complete the enclosed Form 1024, pages 1 through 4 inclusive, and Schedule B on page 7. You do not have to duplicate information you previously submitted.
2483
(Selective)
 If you file Form 1024, also return one signed copy of Form 6018, Consent to Proposed Adverse Action.
2484
(Selective)
 The foregoing comments are advisory only and should not be construed as an expression of opinion that you are or are not exempt under any subsection of the Code, or that you do or do not qualify for relief under the regulations.
2485
(Selective)
 Please answer the following questions and submit any additional information which may aid your case.
2486
(Selective)
  —What action did you take to determine the existence of and requirements for the application?
2487
(Selective)
  —When was it discovered that you were required to file? When did you file? What was the reason for the delay?
2488
(Selective)
  —Did you intend to file the application on time?
2489
(Selective)
  —Would granting the extension either prejudice the interests of the government or cause undue administrative burden?
2490
(Selective)
  —Would granting the extension be consistent with the objectives of the underlying regulatory election or application provision?
2491  Answers to the above questions must be accompanied by the following declaration:
(Selective)   "Under penalties of perjury, I declare that I have examined this request, including accompanying documents, and to the best of my knowledge and belief, the facts presented in support of this request are true, correct and complete."
2492
(Selective)
 The declaration must be signed by an officer of the organization who has knowledge of the facts, and not an authorized representative. Supporting affidavits by an authorized representative or other person must also be accompanied by a comparable declaration.
2540
(Selective)
 It appears you may qualify as an organization exempt from Federal income tax as a civic league or organization under Code section 501(c)(4). A civic league is an organization operated primarily for the promotion of the common good and the general welfare of the people of the community (such as by bringing about civic and social improvements).
2543
(Selective)
 If you do not agree, submit a statement, with all additional information requested, explaining why you feel that you qualify for exemption under Code section 501(c)([2V]).
2581
(Selective)
 Submit sample copies of advertising material distributed by your organization.
2582
(Selective)
 Statements of receipts and disbursements covering your last 3 years of operation show that a substantial part of your disbursements was for advertising.
2584
(Selective)
 It appears that you may qualify as a business league under Code section 501(c)(6). If you want to have your status considered under that section, you should submit an exemption application, Form 1024.
3000–3099  Please mail the information requested in this letter to the following address:
(Selective) [Addresses and instructions for the use of these paragraphs will be provided by the District Office.]
5999  If you have any questions, please contact the person whose name and telephone number are shown in the heading of this letter.
    Thank you for your cooperation.
(Automatic) Sincerely yours,
8500
(Automatic)
Director, Exempt Organizations
8010
(Required)
Response Due Date:
[20V]
8610
(Automatic)
Enclosure:
List of Missing Items

Exhibit 7.21.5-33  (01-01-2003)
Letter 1313 (DO/CG)
Development Letter For EO Applications on Form 1024

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1  Before we can recognize your organization as being exempt from Federal income tax, we must have enough information to show that you have met all legal requirements. You did not include the information needed to make that determination on your Form 1024, Application for Recognition of Exemption Under Section 501(a) or for Determination Under Section 120.
(Automatic)  To help us determine whether your organization is exempt from Federal income tax, please send us the requested information by the above date. We can then complete our review of your application.
 2
(Automatic)
 If we do not hear from you within that time, we will assume that you do not want us to consider the matter further and will close your case. As a result, the Internal Revenue Service will treat your organization as a taxable entity. If we receive the information after the response due date, we may ask you to send us a new Form 1024.
 3
(Selective)
 If more than [10V] days are necessary to obtain State approval of your amended governing instruments, please contact us to request an extension.
 5
(Selective)
 We have sent a copy of this letter to your representative as indicated in your power of attorney.
2007
(Selective)
 We are considering your application for tax-exempt status and find that it is incomplete. We need the following information over the signature of one of your principal officers:
2020
(Selective)
 Will anyone use your facility other than for the purpose of directly carrying out your work? Will any of your directors or employees reside at your facility? If so, explain fully. Is the owner of the facility related to you in any way other than as landlord?
2021
(Selective)
 Will any officers, directors, members, or their relatives, receive a salary, reimbursement for expenses, or any other form of payment from your organization? If so, explain fully, and include the recipients’ names, duties, and the number of hours each week that they will devote to such duties. State the amount of compensation each will receive and the basis for arriving at the amounts of such payments.
2022
(Selective)
 Please submit copies of any brochures, pamphlets, newsletters, advertisements, or any other literature regarding your organization.
2023
(Selective)
 Please submit a chronology and description of your organization’s activities for the past year.
2024
(Selective)
 Please provide copies of any written leases, contracts, or agreements entered into by your organization.
2025
(Selective)
 Please submit any additional information you feel will help us better understand your organization.
2032
(Selective)
 Your organizing document empowers you to engage in a variety of activities of a commercial nature ordinarily carried on by businesses operated for profit, and which for that reason are inconsistent with the purposes and activities of an organization exempt under the Code section for which you applied.
2033
(Selective)
 Indicate the offices or positions held by the persons listed in Part III, item 4, of Form [4V].
2034
(Selective)
 Complete Schedule [1V]. This schedule applies to your type of organization or the Code section under which you are applying.
2035
(Selective)
 Have an authorized officer sign your application before you resubmit it.
2036
(Selective)
 Submit a list of your officers, description of their duties and amount of time devoted to each, and their annual compensation.
2037
(Selective)
 Furnish a copy of the Articles of Incorporation signed by the judge of probate.
2038
(Selective)
 Have an authorized officer sign the enclosed copy of your bylaws or constitution, or both.
2039
(Selective)
 Your fiscal year (accounting period) shown in Part I, item [20V] of your application is inconsistent with the accounting periods given in the financial data you submitted. Please make sure you show the correct accounting period on the application form and submit financial data for years consistent with that accounting period.
2051
(Selective)
 It will be necessary for you to amend your [20V]. Please add the following items to your existing provisions.
2052
(Selective)
 It will be necessary for you to amend your [20V]. Please delete the above section(s).
2053
(Selective)
 It will be necessary for you to amend your [20V]. Please delete the section(s) listed below and add the following provisions:
2055
(Selective)
 Since your organization is not incorporated, please submit a copy of your [20V] signed and dated by an authorized officer.
2062
(Selective)
 It will be necessary for you to amend your Articles of Incorporation.
2063
(Selective)
 It will be necessary for you to amend your Articles of Association.
2064
(Selective)
 It will be necessary for you to amend your bylaws.
2090
(Selective)
 State whether you will intervene in any political campaign on behalf of, or in opposition to, any candidate for public office. If so, will this be your primary activity? What percentage of your time and funds will you devote to intervening in political campaigns?
2095  Describe the nature and extent of your lobbying activities, specifically:
   —The lobbying activities, direct or indirect, that you engaged in or will engage in; and
   —The part of total staff time that is spent in carrying on those activities;
(Selective)  —The amount of money appropriated and spent for those activities.
2300
(Selective)
 Describe how the rental rates are determined. Are they above, below, or at cost?
2301
(Selective)
 Describe any recreational and social programs for residents.
2302
(Selective)
 Describe the area immediately surrounding the housing project. Also, please describe the equipment or facilities.
2303
(Selective)
 Describe the socio-economic condition of the neighborhood. Do residents have problems obtaining adequate housing?
2304
(Selective)
 List any steps taken to involve the community or the residents in this project.
2305
(Selective)
 Give your criteria for admission.
2507
(Selective)
 The enclosed copy of your Constitution/Articles of Association must be signed by two authorized officers.
2520
(Selective)
 Your Articles of Incorporation do not contain a provision requiring that you turn over your entire income, less expenses, to the organization which, itself, is exempt under Code section 501(a).
2521
(Selective)
 You will need to amend your Articles of Incorporation to provide that you are to collect income from the property you hold and turn over the entire amount, less expenses, to the organization for which you are holding title, which you have stated to be [20V].
2540
(Selective)
 It appears you may qualify as an organization exempt from Federal income tax as a civic league or organization under Code section 501(c)(4). A civic league is an organization operated primarily for the promotion of the common good and the general welfare of the people of the community (such as by bringing about civic and social improvements).
2541
(Selective)
 To be exempt as a local association of employees, an organization must show that its net earnings are devoted exclusively to charitable, educational, and recreational purposes.
2542
(Selective)
 You may be able to qualify as a homeowners’ organization described in Code section 528. If you meet the requirements of that section, you may elect to be covered by section 528 by annually filing Form 1120–H, U.S. Income Tax Return for Homeowners’ Associations. If you elect to file 1120–H, submit a statement that you wish no further consideration of your application.
2543
(Selective)
 If you do not agree, submit a statement, with all additional information requested, explaining why you feel that you qualify for exemption under Code section 501(c)([2V]).
2560
(Selective)
 Section 1.501(c)(5)–1 of the Income Tax Regulations describes organizations covered by Code section 501(c)(5) as labor, agricultural, and horticultural organizations that have no net earnings inuring to the benefit of any member and have as their object the betterment of the conditions of persons engaged in those pursuits, the improvement of the grade of their products, and the development of a higher degree of efficiency in their respective occupations.
2561
(Selective)
 Agricultural and horticultural organizations are exempt as organizations described in section 501(c)(5) if no part of their net earnings inures to the benefit of any member and if their objectives are the betterment of the conditions of members, the improvement of the grade of their products, and the development of higher efficiency. Agricultural organizations are those connected with raising livestock or crops, forestry, the cultivation of useful or ornamental plants, and similar pursuits.
2562
(Selective)
 It is the Service’s position that the qualifying characteristic of a "labor organization" , as the term is used in section 501(c)(5), is that it has as its principal purpose the representation of employees in such matters as wages, hours of labor, working conditions, and economic benefits.
2563
(Selective)
 Labor organizations are exempt from income tax because, among other reasons, they operate in part as mutual benefit organizations, providing benefits to their members or their members’ families in the event of strike, lockout, death, sickness, accident, etc. Accordingly, payment of those benefits by a labor organization to its members or their families from funds contributed by its members, if made under a plan which has as its object the betterment of the conditions of the members, does not preclude exemption for the organization under Code section 501(c)(5).
2580
(Selective)
 Section 1.501(c)(6)–1 of the Income Tax Regulations states, in part:
    "A business league is an association of persons having some common business interest, the purpose of which is to promote such common interest.... It is an organization of the general class as a chamber of commerce or board of trade. Thus, its activities should be directed to the improvement of business conditions of one or more lines of business as distinguished from the performance of particular services for individual persons."
2581
(Selective)
 Submit sample copies of advertising material distributed by your organization.
2582
(Selective)
 Statements of receipts and disbursements covering your last 3 years of operation show that a substantial part of your disbursements was for advertising.
2583
(Selective)
 Attempting to influence legislation germane to the common business interest of the members is considered within the scope of Code section 501(c)(6). Revenue Ruling 61–177, 1961–2 C.B. 117, states in part:
    "There is no requirement, by statute or regulations, that a business league, chamber of commerce, etc., in order to be considered exempt as such, must refrain from carrying on propaganda or influencing legislation."
2600  Do nonmembers, other than bona fide guests of members use the club facilities, purchase merchandise, or participate in or attend any function or activity conducted by your organization? If yes, please provide:
(Selective)  —a description of the functions or activities in which nonmembers participate or to which they are admitted,
2601  —a statement of the amount received from those nonmembers during your last 12 months of operations,
   —a schedule of expenses attributable to those functions, and
(Selective)  —a schedule of the disposition of any net profit derived from them.
2602
(Selective)
 Section 501(i) of the Code prohibits exemption under section 501(c)(7) for any club for any taxable year if "... at any time during such taxable year, the charter, bylaws, or other governing instrument of such organization or any written policy statement of such organization contains a provision which provides for discrimination against any person on the basis of race, color, or religion."
2603
(Selective)
 Before taking further action on your case, we are giving you an opportunity to amend your [20V] to conform to the requirements for exemption as an organization described in Code section 501(c)(7).
2607
(Selective)
 Provide the following information:
2608
(Selective)
 —The total number of members.
2609
(Selective)
 —The number of members in each class of membership.
2610
(Selective)
 —The amount of yearly dues.
2611
(Selective)
 —Representative copies of any brochures, newsletters, newspaper articles, etc. about your organization.
2612
(Selective)
 —Copies of any advertising placed by your organization.
2614
(Selective)
 List the activities you sponsored in the past year. Show which activities were open to members only and which were open to the general public. If there was an admission charge, show the amount.
2615  A breakdown of income for each year since [20V], showing the total gross receipts attributable to:
   —members,
   —general public,
(Selective)  —clubs of a like nature (also state whether or not on a reciprocal basis).
2616
(Selective)
Show these amounts separately.
2617  Section 1.501(c)(8)–1 of the Income Tax Regulations states:
(Selective)  "(a) A fraternal beneficiary society is exempt from tax only if operated under the "lodge system" or for the exclusive benefit of the members so operating. "Operating under the lodge system" means carrying on its activities under a form of organization that comprises local branches, chartered by a parent organization and largely self-governing, called lodges, chapters, or the like. In order to be exempt it is also necessary that the society have
2618
(Selective)
an established system for the payment to its members or their dependents of life, sick, accidents, or other benefits."
2640
(Selective)
 Section 1.501(c)(8)–1 of the Income Tax Regulations states:
   "(a) A fraternal beneficiary society is exempt from tax only if operated under the ’lodge system’ or for the exclusive benefit of the members so operating. ’Operating under the lodge system’ means carrying on its activities under a form of organization that comprises local branches, chartered by a parent organization and largely self-governing, called
2641
(Selective)
 lodges, chapters or the like. In order to be exempt, it is also necessary that the society have an established system for the payment to its members or their dependents of life, sick, accidents, or other benefits."
2700
(Selective)
 Revenue Ruling 72–36, 1972–1 C.B. 151, cites certain requirements for exemption from Federal income tax under section 501(c)(12) of the Internal Revenue Code.
2701
(Selective)
 Question 5 of the revenue ruling discusses the required dissolution clause. To qualify under section 501(c)(12), you must add to your [20V] the following provision:
    "In the event of dissolution of the company, each member, including former members, shall receive his proportionate share of the company’s property and assets based on patronage, insofar as is practicable, after paying or providing for the payment of all debts of the company."
2702
(Selective)
 Question 4 of the revenue ruling discusses the effect of forfeiture of members’ rights and interests on withdrawal or termination. If your [20V] provides for forfeiture on withdrawal or termination, you are not operating on a mutual or cooperative basis and will not qualify for exemption under Code section 501(c)(12).
3000–3099 Please mail the information requested in this letter to the following address:
(Selective) [Addresses and instructions for the use of these paragraphs will be provided by the District Office.]
5999  If you have any questions, please contact the person whose name and telephone number are shown in the heading of this letter.
   Thank you for your cooperation.
(Automatic) Sincerely yours,
8500
(Automatic)
Director, Exempt Organizations
8010
(Required)
Response Due Date:
[20V]
8610
(Automatic)
Enclosure:
List of Missing Items

Exhibit 7.21.5-34  (01-01-2003)
Letter 1314 (DO/CG)
EO Failure to Establish Adverse Letter 501(c)(3)

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1
(Automatic)
 On the above date we wrote you about your Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code. In that letter we asked you to send us additional information to show that you have met all legal requirements. To date we have not received the information necessary to make a determination of your tax-exempt status.
 3
(Automatic)
 We therefore cannot process your application for recognition under Code section 501(c)(3) and have closed your case. Contributions to your organization are not deductible under Code section 170. In accordance with Code section 6104(c), we will notify the appropriate state officials of this action. If you want further consideration, please send us a new Form 1023.
 4  User fees are not refundable for requests that are closed because information necessary to make a determination is not received. However, if you send us a new Form 1023 within 90 days from the date of this letter, no additional amount is due. If you send a new Form 1023 more than 90 days after the date of this letter, another user fee payment is required.
(Automatic)  If you do send us a new Form 1023, PLEASE ATTACH A COPY OF THIS LETTER and be sure your application includes the information we requested in our earlier letter referred to above.
 5
(Automatic)
 Section 7428 of the Code provides for bringing suit for a declaratory judgment in the United States Tax Court, the United States Claims Court, or the district court of the United States for the District of Columbia with respect to this determination. However, section 7428(b)(2) of the Code provides, in part, that, "A declaratory judgment 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."
 7
(Automatic)
 Since you have not provided the information needed, this may be considered as failure to exhaust administrative remedies available to you within the Service. Therefore, you may lose your rights to a declaratory judgment under Code section 7428.
 9
(Automatic)
 You are required to file Federal income tax returns on the form and for the years shown in the heading of this letter. File these returns with your key District Director for exempt organization matters within 60 days from the date of this letter, unless a request for an extension of time is granted. We will not delay processing of income tax returns and assessment of any taxes due because of your bringing suit for declaratory judgment under Code section 7428. File returns for later tax years with the appropriate service center indicated in the instructions for those returns.
 11
(Automatic)
 If you have any questions about this matter, please write to the person whose name is shown at the top of this letter, or you may call that person at the telephone number shown. If you write to us, please provide your telephone number and the most convenient time for us to call in case we need more information.
3000–3099 Please mail the information requested in this letter to the following address:
(Selective) [Addresses and instructions for the use of these paragraphs will be provided by the District Office.]
5998
(Selective)
 We have sent a copy of this letter to your representative as indicated in your power of attorney.
5999  Thank you for your cooperation.
(Automatic) Sincerely yours,
8500
(Automatic)
Director, Exempt Organizations
8010
(Required)
Our Letter Dated:
[20V]
8011
(Required)
Form:
[4V]
8012
(Required)
Tax Years:
[20V]
8013
(Automatic)
90-Day User Fee Response Date:
8610
(Automatic)
Enclosures:
Form 1023/Attachments

Exhibit 7.21.5-35  (01-01-2003)
Letter 1315 (DO/CG)
EO Failure To Establish Adverse Letter 501(c) Others

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1
(Automatic)
 On the above date we wrote you about your Form 1024, Application for Recognition of Exemption Under Section 501(a) or for Determination Under Section 120. In that letter we asked you to send us additional information to show that you have met all legal requirements.
 3
(Automatic)
 To date we have not received the information necessary to make a determination of your tax-exempt status. We therefore cannot process your application and have closed your case.
 4  User fees are not refundable for requests that are closed because information necessary to make a determination is not received. However, if you send us a new Form 1024 within 90 days from the date of this letter, no additional amount is due. If you send a new Form 1024 more than 90 days after the date of this letter, another user fee payment is required.
(Selective)  If you do send us a new Form 1024, PLEASE ATTACH A COPY OF THIS LETTER and be sure your application includes the information we requested in our earlier letter referred to above.
 5
(Automatic)
 You are required to file Federal income tax returns on the form and for the years shown above. File these returns with your key District Director for exempt organization matters within 60 days from the date of this letter, unless a request for an extension of time is granted. File returns for later tax years with the appropriate service center indicated in the instructions for those returns.
 7
(Automatic)
 If you have any questions about this matter, please write to the person whose name is shown at the top of this letter, or you may call that person at the telephone number shown. If you write to us, please provide your telephone number and the most convenient time for us to call in case we need more information.
3000–3099 Please mail the information requested in this letter to the following address:
(Selective) [Addresses and instructions for the use of these paragraphs will be provided by the District Office.]
5998
(Selective)
 We have sent a copy of this letter to your representative as indicated in your power of attorney.
5999  Thank you for your cooperation.
(Automatic) Sincerely yours,
8500
(Automatic)
Director, Exempt Organizations
8010
(Required)
Our Letter Dated:
[20V]
8011
(Required)
Form:
[4V]
8012
(Required)
Tax Years:
[20V]
8013
(Automatic)
90-Day User Fee Response Date:
8610
(Automatic)
Enclosures:
Application Form/Attachments

Exhibit 7.21.5-36  (01-01-2003)
Letter 1316 (DO/CG)
EO Proposed Denial Letter 501(c)(3)

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1
(Required)
 On the above date we wrote you about your Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code. In that letter we explained why it appeared that you filed your application for tax-exempt status under the wrong Code section. We suggested that you send us a new application under Code section 501(a) as an organization described under 501(c)([2V]). However, to date we have not received the new application or a reply.
 3  We have considered your initial application and propose to deny your request for recognition of tax-exempt status as an organization described in Code section 501(c)(3). The enclosed Form 6265, Statement of Proposed Adverse Determination, gives the applicable facts, law, and argument for our determination. Under Code section 6104(c), we will notify the appropriate state officials of this action.
(Automatic)  Contributions to your organization are not deductible under Code section 170.
 5
(Automatic)
 The enclosed Publication 892, Exempt Organization Appeal Procedures for Unagreed Issues, explains your appeal rights. Unless we hear from you within 30 days from this date, this letter will be our final determination.
 7
(Automatic)
 Section 7428 of the Code provides for bringing suit for a declaratory judgment in the United States Tax Court, the United States Claims Court, or the district court of the United States for the District of Columbia with respect to this determination. However, section 7428(b)(2) of the Code provides, in part, that, "A declaratory judgment 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."
 9
(Automatic)
 If you do not exercise your appeal rights, the Internal Revenue Service will consider it as failure to exhaust administrative remedies available to you within the Service. Therefore, you may lose your rights to a declaratory judgment under Code section 7428.
 11
(Automatic)
 You are required to file Federal income tax returns on the form and for the years indicated in the heading of this letter. File these returns with your key District Director for exempt organization matters within 60 days from the date of this letter, unless a request for an extension of time is granted. We will not delay processing of income tax returns and assessment of any taxes due because of your bringing suit for declaratory judgment under Code section 7428. File returns for later tax years with the appropriate service center indicated in the instructions for those returns.
3000 Please mail the information requested in this letter to the following address:
  [Addresses and instructions for the use of these paragraphs will be provided by the District Office.]
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.
   Thank you for your cooperation.
(Automatic) Sincerely yours,
8500
(Automatic)
Director, Exempt Organizations
8010
(Required)
Our Letter Dated:
[20V]
8011
(Required)
Form:
[4V]
8012
(Required)
Tax Years:
[20V]
8610
(Automatic)
Enclosures:
Form 6265
Publication 892

Exhibit 7.21.5-37  (01-01-2003)
Letter 1399 (DO/CG)
Technical Advice Request Notice to Taxpayer

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   File Folder Number:
   Person to Contact:
   Contact Telephone Number:
   Plan Name:
   Plan Number:
[Salutation]    
 1
(Automatic)
 We are going to request technical advice from our National Office headquarters about your employee benefit plan.
 2
(Automatic)
 Enclosed is a statement of the pertinent facts and questions we propose to send to the National Office. If you disagree with the facts as stated, explain your disagreement in writing. We will send your comments to the National Office with our request for technical advice.
 3
(Selective)
 The Internal Revenue Code requires the IRS to delete certain data from technical advice memoranda that are subject to disclosure under section 6110(a) of the Internal Revenue Code. When we send requests for technical advice, we must include either (1) a statement of the deletions the taxpayer proposes and the statutory basis for each proposed deletion, or (2) a statement that the only information that needs to be deleted is the names, addresses, and taxpayer identifying numbers. Please send us your statement of proposed deletions on a separate sheet so we can include it with our request.
 4
(Selective)
 Your request will be open to public inspection because it relates to the qualification of a plan or the tax exemption of the related trust (section 6104 of the Internal Revenue Code). If we need a statement about deletions, we will request it later.
 5
(Automatic)
 You are entitled to a conference in the National Office if the decision is adverse. Please let us know whether you want such a conference.
3000–3999 Please mail the information requested in this letter to the following address:
(Selective) [Addresses and instructions for the use of these paragraphs will be provided by the District Office.]
5998
(Selective)
 We have sent a copy of this letter to your tax 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 above.
(Automatic) Sincerely yours,
8500
(Automatic)
Director, Exempt Organizations
8000
(Required)
Refer Reply to:
[20V]
8001
(Required)
Required Response Date:
[20V]
8501
(Automatic)
Enclosures:
Statement of Facts and Questions
Copy of this letter

Exhibit 7.21.5-38  (01-01-2003)
Letter 2171 (DO/CG)
EO Favorable Modification Letter Extending 509(a) Advance Ruling Period to Five Years

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1
(Automatic)
 This modifies our letter of the above date in which we stated that you would be treated as a publicly supported organization rather than a private foundation during an advance ruling period consisting of your first two or three tax years.
 3
(Automatic)
 At your request, we have extended your advance ruling period to include a total of five years. Your advance ruling period now ends on the date shown above. In all other respects, our letter of the above date remains in effect.
 5
(Automatic)
 Because this letter could help resolve any questions about your private foundation status, please keep it in your permanent records. The attached copy of Form 872–C, Consent Fixing Period of Limitation Upon Assessment of Tax Under Section 4940 of the Internal Revenue Code, is also for your 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 above.
(Automatic) Sincerely yours,
8500
(Automatic)
Director, Exempt Organizations
8010
(Required)
Our Letter Dated:
[20V]
8011
(Required)
Advance Ruling Periods Ends:
[20V]
8610
(Automatic)
Enclosure:
Form 872–C

Exhibit 7.21.5-39  (01-01-2003)
Letter 2240 (DO/CG)
EO Modification Letter of Foundation Status from IRC 509(a)(1) to 509(a)(2)

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1
(Required)
 In our letter dated [20V], we determined that you were exempt from Federal income tax under section 501(a) as an organization described in section 501(c)(3) of the Internal Revenue Code. Because you were a newly created organization, we did not make a final determination of your private foundation status under section 509(a) of the Code. However, we determined that you could reasonably be expected to be a publicly supported organization described in section 509(a)(1) of the Code. We also determined that you would be treated as other than a private foundation pursuant to sections 170(b)(1)(A)(vi) and 509(a)(1) of the Code during your advance ruling period.
 3
(Automatic)
 Sections 170(b)(1)(A)(vi) and 509(a)(1) describe an organization, "...which normally receives a substantial part of its support from a governmental unit ..." or from direct or indirect contributions from the general public.
 5
(Automatic)
 Section 1.170A–9(e)(2) of the Income Tax Regulations states that an organization is publicly supported if at least 33 1/3 percent of its support is received from governmental units and direct or indirect contributions from the general public.
 7
(Automatic)
 Section 1.170A–9(e)(6)(i) of the Regulations states, in part, that in order to meet the 1/3 support test, contributions from individuals, corporations or trusts are includible in public support only to the extent that they do not exceed 2 percent of the organization’s total support.
 8
(Selective)
 A review of the financial information you recently submitted indicates that [20V] percent of your total support came from the general public. This percentage is calculated on the support received by taking into consideration the 2 percent rule noted above. Based upon the above, we have determined that you do not meet the requirements of section 509(a)(1) of the Code.
 9
(Selective)
 A review of the financial information you recently submitted indicates that substantially all of your support was derived from gross receipts from related activities and an insignificant amount was received from contributions made directly or indirectly by the general public. Therefore, we have determined that your organization is not one described in section 509(a)(1).
 10  Section 509(a(2) of the Code describes an organization that receives no more than one-third of its support from gross investment income and more than one-third of its support in each tax year from any combination of the following:
  i) gifts, grants, contributions or membership fees from other than a disqualified person, and
  ii) gross receipts from admissions, sales of merchandise, performance of services or furnishing of facilities, in an activity that is not an
 11
(Automatic)
unrelated trade or business (to the extent that gross receipts from any person, or from any bureau or similar agency of a governmental unit do not exceed the greater of $5,000 or 1 percent of the organization’s total support in that year).
 15
(Automatic)
 Based on the information you submitted, we have determined that you are not a private foundation within the meaning of section 509(a) of the Code, because you are an organization of the type described in section 509(a)(2). Your exempt status under section 501(c)(3) of the Code is still in effect. This modifies our previous letter in which we stated that you would be treated as an organization which is not a private foundation until the expiration of your advance ruling period.
 19
(Automatic)
 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 principle officers, that person will need to file a power of attorney or tax information
 20
(Automatic)
authorization with us.
 22
(Automatic)
 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 in this matter. Further, if you do not appeal this determination in a timely manner, it will be considered by the Internal Revenue Service as a failure to exhaust administrative remedies. Section 7428(b)(2) of the Code provides, in part, that, "A declaratory judgment 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
 23
(Automatic)
available to it within the Internal Revenue Service."
 25
(Automatic)
 Appeals submitted which do not contain all the documentation required by Publication 892 will be returned for completion.
5997
(Automatic)
 Because this letter could help resolve any questions about your private foundation status, please keep it with your permanent records. If the heading of this letter indicates that an addendum applies, the addendum enclosed is an integral part of this letter.
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)
Addendum Applies:
[20V]
8610
(Automatic)
Enclosure(s):
Publication 892
8620
(Selective)
Addendum

Exhibit 7.21.5-40  (01-01-2003)
Letter 2241 (DO/CG)
Letter for Returning Substantially Deficient Volume Submitter and Regional Prototype Plans

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1
(Required)
 In our letter dated [20V], we determined that you were exempt from Federal income tax under section 501(a) of the Internal Revenue Code as an organization described in section 501(c)(3). Because you were a newly created organization, we did not make a final determination of your private foundation status under section 509(a) of the Code. However, we determined that you could reasonably be expected to be a publicly supported organization described in section 509(a)(1) or 509(a)(2) of the Code. We also determined that you would be treated as other than a private foundation during your advance ruling period.
 3
(Automatic)
 Based on the financial information you submitted covering your advance ruling period, we have determined that you are a private foundation as defined in section 509(a) of the Code. Your exempt status as an organization described in 501(c)(3) remains in effect.
 5
(Automatic)
 Sections 170(b)(1)(A)(vi) and 509(a)(1) describe an organization, "... which normally receives a substantial part of its support from a governmental unit... or from direct or indirect contributions from the general public." Section 1.170A–9(e)(2) of the Income Tax Regulations states that an organization is publicly supported if at least 33 1/3 percent of its support is received from governmental units and direct or indirect contributions from the general public.
 9
(Required)
 Section 1170A–9(e)(6)(i) of the Regulations states, in part, that in order to meet the 1/3 support test, contributions from individuals, corporations or trusts are includible in public support only to the extent that they do not exceed 2 percent of the organization’s total support. A review of the financial information you recently submitted indicates that [20V] percent of your total support came from the general public. This percentage is calculated on the support received by taking into consideration the 2 percent rule noted above.
 11
(Automatic)
 Based upon the above, we have determined that you do not meet the requirements of section 509(a)(1) of the Code. Section 509(a)(2) of the Code describes an organization that receives no more than one-third of its support from gross investment income and more than one-third of its support in each tax year from any combination of the following:
   i) gifts, grants, contributions or membership fees from other than a
 12  disqualified person, and
(Automatic)  ii) gross receipts from admissions, sales of merchandise performance of services or furnishing of facilities, in an activity that is not an unrelated trade or business (to the extent that gross receipts from any person, or from any bureau or similar agency of a governmental unit do not exceed the greater of $5,000 or 1 percent of the organization’s total support in that year).
 15
(Required)
 A review of the financial information you submitted indicates that [20V] percent of your total support came from the general public for purposes of section 509(a)(2) of the Code. Based upon this information, we hold that you do not meet the requirements of section 509(a)(2) of the Code.
 17
(Automatic)
 Section 509(a)(3) of the Code describes an organization which is operated solely for the benefit of or in connection with one or more of the organizations described in section 509(a)(1) or 509(a)(2) of the Code. You do not meet the requirements of section 509(a)(3) of the Code. Additionally, you are not an organization described in section 509(a)(4) of the Code because you are not organized and operated exclusively for testing for public safety.
 21
(Automatic)
 As a private foundation you are required to file Form 990–PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as a Private Foundation, by the fifteenth day of the fifth month following the close of your tax year. There is a penalty of $20 a day, up to a maximum of $10,000 or 5 percent of your gross receipts, whichever is less, for each return filed late, unless there is reasonable cause for the delay. 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.
 22
(Automatic)
 This penalty may also be charged if a return is not complete, so please be sure your return is complete before you file it.
 23
(Automatic)
 For purposes of sections 507(d) and 4940 of the Code, you are considered to be a private foundation as of the effective date of your exemption under section 501(c)(3). Therefore, you are required to file a limited Form 990–PF for each year covered by your advance ruling. Complete only the general information at the top of the form, column (b) of Part I, all of Parts IV and VI (or all of Parts VII and II, respectively, for tax years beginning before 1985), Part V (if applicable), sign the return and pay all taxes due, with interest. If you file within 90 days from the date of this letter you will not be subject to the penalty provisions of sections 6651 and 6652. Attach a statement to the
 24
(Automatic)
returns explaining that you have reasonable cause for filing late (your advance ruling) and cite Revenue Procedure 79–8, 1979–1 C.B. 487. The limited Forms 990–PF described in this paragraph should be filed with this office.
 25
(Automatic)
 You are required to make your annual return available for public inspection within 180 days after the date of publication of its availability, and you must publish the notice of availability no later than the date required for filing the return. 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).
 26
(Required)
 Since you are classified as a private foundation as of [20V],
 27
(Required)
all parts of Form 990–PF for [20V] should be completed. However, the figures for column (c) of Part I, all of Part IX through Part XIV, and Part XV (if applicable), and your answers to the questions in Part VII should reflect only the period beginning on the above date and ending on the last day of your tax year. Forms 990–PF for subsequent years should be completed and filed according to the instructions for those forms.
 29
(Automatic)
 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 information
 31 authorization with us.
(Automatic)  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 in this matter. Further, if you do not appeal this determination in a timely manner, it will be considered by the Internal Revenue Service as a failure to exhaust administrative remedies. Section 7428(b)(2) of the Code provides, in part, that, "A declaratory judgment 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 deter-
 33
(Automatic)
mines that the organization involved has exhausted administrative remedies available to it within the Internal Revenue Service." Appeals submitted which do not contain all the documentation required by Publication 892 will be returned for completion.
ADDITIONAL PARAGRAPHS
3229
(Selective)
 As a private foundation you cannot be exempt from Federal income tax under section 501(a) of the Code unless your governing instrument contains the provisions of section 508(e) or is considered to satisfy the requirements of that section because of State law. If you do not comply with the regulations issued under section 508 you will no longer be exempt from tax and contributions to you will no longer be deductible.
3348
(Selective)
 If you agree with the determination, please sign and return the enclosed Form 6018 as soon as possible.
5997
(Automatic)
 If the heading of this letter indicates that an addendum applies, the addendum enclosed is an integral part of this letter. Because this letter could help resolve any questions about your private foundation status, please keep it with 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)
Addendum Applies:
[20V]
8610
(Automatic)
Enclosure(s):
Publication 892
8620
(Selective)
Form 6018
8630
(Selective)
Addendum

Exhibit 7.21.5-41  (01-01-2003)
Letter 2242 (DO/CG)
EO Termination Letter

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1
(Required)
 We appreciate your cooperation in submitting the information regarding the dissolution of your organization. As a result of the dissolution, your exempt status under section 501(a) of the Internal Revenue Code, as an organization described in the section shown above, is terminated and no longer effective after [20V].
 3
(Selective)
 Contributions to you are not deductible after [20V].
 4
(Selective)
 A final return, Form 990, Return of Organization Exempt From Income Tax (Except Private Foundation), should be filed with the appropriate service center.
 5
(Selective)
 In accordance with section 6104(c) of the Code, the appropriate State officials will be notified of this action.
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)
Internal Revenue Code
Section 501(c)([2V])
8610
(Selective)
cc: State Attorney General

Exhibit 7.21.5-42  (01-01-2003)
Letter 2243 (DO/CG)
EO Private Foundation Determination Letter After No Public Support During Advance Ruling

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1
(Required)
 In our letter dated [20V], we determined that you were exempt from Federal income tax under section 501(a) of the Internal Revenue Code as an organization described in section 501(c)(3). Because you were a newly created organization, we did not make a final determination of your private foundation status under section 509(a) of the Code. However, we determined that you could reasonably be expected to be a publicly supported organization described in section 509(a)(1) or 509(a)(2) of the Code. We also determined that you would be treated as other than a private foundation during your advance ruling period.
 3
(Automatic)
 Based on the financial information you submitted covering your sources of support during the advance ruling period, we have determined that you are a private foundation as defined in section 509(a) of the Code. Your exempt status as an organization described in section 501(c)(3) remains in effect. Section 170(b)(1)(A)(vi) and 509(a)(1) describe an organization, "... which normally receives a substantial part of its support from a governmental unit ... or from direct or indirect contributions from the general public."
 5  Section 509(a)(2) of the Code describes an organization that receives no more than one-third of its support from gross investment income and more than one-third of its support in each tax year from any combination of the following:
   a) gifts, grants, contributions or membership fees from other than a disqualified person, and
(Automatic)  b) gross receipts from admissions, sales of merchandise, performance
 6
(Automatic)
 of services or furnishing of facilities, in an activity that is not an unrelated trade or business (to the extent that gross receipts from any person, or from any bureau or similar agency of a governmental unit do not exceed the greater of $5,000 or 1 percent of the organization’s total support in that year).
 8
(Automatic)
 Section 509(a)(3) of the Code describes an organization which is operated solely for the benefit of or in connection with one or more of the organizations described in sections 509(a)(1) and 509(a)(2) of the Code. Section 509(a)(4) describes an organization that is organized and operated exclusively for testing for public safety.
 10
(Automatic)
 Since you received no support from the sources described in sections 509(a)(1) and 170(b)(1)(A)(vi) or 509(a)(2) during your advance ruling period, you have not met the public support tests of section 509(a)(1) or 509(a)(2) of the Code. In addition, you do not meet the requirements of a supporting organization within the meaning of section 509(a)(3) or a testing for public safety organization within the meaning of section 509(a)(4) of the Code.
 12
(Automatic)
 As a private foundation you are required to file Form 990–PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as a Private Foundation, by the 15th day of the fifth month following the close of your tax year. There is a penalty of $20 a day, up to a maximum of $10,000 or 5 percent of your gross receipts, whichever is less, for each return filed late, unless there is reasonable cause. 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
 13
(Automatic)
be charged if a return is not complete, so please be sure your return is complete before you file it.
 14
(Automatic)
 For purposes of sections 507(d) and 4940 of the Code, you are considered to be a private foundation as of the effective date of your exemption under section 501(c)(3). Therefore, you are required to file a limited Form 990–PF for each year covered by your advance ruling. Complete only the general information at the top of the form, column (b) of Part I, all of Parts IV and VI (or all of Parts VII and II, respectively, for tax years beginning before 1985), Part V (if applicable), sign the return and pay all taxes due, with interest. If you file within 90 days from the date of this letter you will not be subject to the penalty provisions of sections 6651 and 6652. Attach a statement to the
 15
(Automatic)
returns explaining that you have reasonable cause for filing late (your advance ruling) and cite Revenue Procedure 79–8, 1979–1 C.B. 487. The limited Forms 990–PF described in this paragraph should be filed with this office.
 16
(Automatic)
 You are required to make your annual return available for inspection by any citizen upon a request made within 180 days after the date of publication of its availability, and you must publish the notice of availability no later than the date required for filing the return. 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).
 17
(Required)
 Since you are classified as a private foundation as of [20V],
 18
(Required)
all parts of Form 990–PF for [20V] should be completed. However, the figures for column (c) of Part I, all of Part IX through Part XIV, and Part XV (if applicable), and your answers to the questions in Part VII should reflect only the period beginning on the above date and ending on the last day of your tax year. Forms 990–PF for subsequent years should be completed and filed according to the instructions for those forms.
 20
(Automatic)
 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 principle officers, that person will need to file a power of attorney or tax information
 22 authorization with us.
(Automatic)  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 in this matter. Further, if you do not appeal this determination in a timely manner, it will be considered by the Internal Revenue Service as a failure to exhaust administrative remedies. Section 7428(b)(2) of the Code provides, in part, that, "A declaratory judgment 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 deter-
 24
(Automatic)
mines that the organization involved has exhausted administrative remedies available to it within the Internal Revenue Service." Appeals submitted which do not contain all the documentation required by Publication 892 will be returned for completion.
ADDITIONAL PARAGRAPHS
3229
(Selective)
 As a private foundation you cannot be exempt from Federal income tax under section 501(a) of the Code unless your governing instrument contains the provisions of section 508(e) or is considered to satisfy the requirements of that section because of State law. If you do not comply with the regulations issued under section 508 you will no longer be exempt from tax and contributions to you will no longer be deductible.
3348
(Selective)
 If you agree with the determination, please sign and return the enclosed Form 6018 as soon as possible.
5997
(Automatic)
 If the heading of this letter indicates that an addendum applies, the addendum enclosed is an integral part of this letter. Because this letter could help resolve any questions about your private foundation status, please keep it with 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)
Addendum Applies:
[20V]
8610
(Automatic)
Enclosure(s):
Publication 892
8620
(Selective)
Form 6018
8630
(Selective)
Addendum

Exhibit 7.21.5-43  (01-01-2003)
Letter 2244 (DO/CG)
EO Withdrawal Letter

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1
(Required)
 We have received your letter dated [20V], requesting the withdrawal of your application for recognition of exemption as an organization described in the Internal Revenue Code section shown above. In accordance with your request, no further action will be taken and the matter is considered closed.
   You may be required to file Federal income tax returns.
 3
(Selective)
 Because you have withdrawn your application, the Internal Revenue Service will consider that you have not taken all reasonable steps to secure the determination requested in the application. Under Code section 7428(b)(2), not taking all reasonable steps in a timely manner to secure a determination may be considered as failure to exhaust administrative remedies available to you within the Service. This may preclude the issuance of a declaratory judgment in this matter under section 7428 of the Code.
 5
(Automatic)
 User fee payments are not refundable when the application for the determination letter is withdrawn from consideration. If you request another determination letter for this organization, another user fee payment will be required.
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.
   Thank you for your cooperation.
(Automatic) Sincerely yours,
8500
(Automatic)
Director, Exempt Organizations
8010
(Required)
Internal Revenue Code
Section 501(c)([2V]

Exhibit 7.21.5-44  (01-01-2003)
Letter 2245 (DO/CG)
EO Advance Ruling Under IRC 507(b)(1)(B) — Termination of Private Foundation Status

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1
(Required)
 We have received your notification of intent to terminate your private foundation status under section 507(b)(1)(B) of the Internal Revenue Code during a 60 month period beginning [20V].
 2
(Selective)
 The information submitted indicates that you intend to operate as an organization described in sections 509(a)(1) and 170(b)(1)(A)(i) of the Code during the 60 month period.
 3
(Selective)
 The information submitted indicates that you intend to operate as an organization described in sections 509(a)(1) and 170(b)(1)(A)(ii) of the Code during the 60 month period.
 4
(Selective)
 The information submitted indicates that you intend to operate as an organization described in sections 509(a)(1) and 170(b)(1)(A)(iii) of the Code during the 60 month period.
 5
(Selective)
 The information submitted indicates that you intend to operate as an organization described in sections 509(a)(1) and 170(b)(1)(A)(iv) of the Code during the 60 month period.
 6
(Selective)
 The information submitted indicates that you intend to operate as an organization described in sections 509(a)(1) and 170(b)(1)(A)(v) of the Code during the 60 month period.
 7
(Selective)
 The information submitted indicates that you intend to operate as an organization described in sections 509(a)(1) and 170(b)(1)(A)(vi) of the Code during the 60 month period.
 8
(Selective)
 The information submitted indicates that you intend to operate as an organization described in section 509(a)(2) of the Code during the 60 month period.
 9
(Selective)
 The information submitted indicates that you intend to operate as an organization described in section 509(a)(3) of the Code during the 60 month period.
 12
(Selective)
 Based on your proposed activities and support, it is held that you can reasonably be expected to terminate your private foundation status under section 507(b)(1)(B) of the Code. Accordingly, you will be treated as a public charity described in sections 509(a)(1) and 170(b)(1)(A)(i) of the Code for an advance ruling period of 60 months beginning [20V].
 13
(Selective)
 Based on your proposed activities and support, it is held that you can reasonably be expected to terminate your private foundation status under section 507(b)(1)(B) of the Code. Accordingly, you will be treated as a public charity described in sections 509(a)(1) and 170(b)(1)(A)(ii) of the Code for an advance ruling period of 60 months beginning [20V].
 14
(Selective)
 Based on your proposed activities and support, it is held that you can reasonably be expected to terminate your private foundation status under section 507(b)(1)(B) of the Code. Accordingly, you will be treated as a public charity described in sections 509(a)(1) and 170(b)(1)(A)(iii) of the Code for an advance ruling period of 60 months beginning [20V].
 15
(Selective)
 Based on your proposed activities and support, it is held that you can reasonably be expected to terminate your private foundation status under section 507(b)(1)(B) of the Code. Accordingly, you will be treated as a public charity described in sections 509(a)(1) and 170(b)(1)(A)(iv) of the Code for an advance ruling period of 60 months beginning [20V].
 16
(Selective)
 Based on your proposed activities and support, it is held that you can reasonably be expected to terminate your private foundation status under section 507(b)(1)(B) of the Code. Accordingly, you will be treated as a public charity described in sections 509(a)(1) and 170(b)(1)(A)(v) of the Code for an advance ruling period of 60 months beginning [20V].
 17
(Selective)
 Based on your proposed activities and support, it is held that you can reasonably be expected to terminate your private foundation status under section 507(b)(1)(B) of the Code. Accordingly, you will be treated as a public charity described in sections 509(a)(1) and 170(b)(1)(A)(vi) of the Code for an advance ruling period of 60 months beginning [20V].
 18
(Selective)
 Based on your proposed activities and support, it is held that you can reasonably be expected to terminate your private foundation status under section 507(b)(1)(B) of the Code. Accordingly, you will be treated as a public charity described in section 509(a)(2) of the Code for an advance ruling period of 60 months beginning [20V].
 19
(Selective)
 Based on your proposed activities and support, it is held that you can reasonably be expected to terminate your private foundation status under section 507(b)(1)(B) of the Code. Accordingly, you will be treated as a public charity described in section 509(a)(3) of the Code for an advance ruling period of 60 months beginning [20V].
 22
(Automatic)
 Within 90 days after the end of your 60 month period, you must establish to the satisfaction of the Internal Revenue Service that you have qualified as an organization which meets the requirements of paragraph (1), (2), or (3) of section 509(a) of the Code for the 60 month period. If you do establish that fact, you will be so classified for all purposes beginning with the first day of the first taxable year of the 60 month period and, thereafter, so long as you continue to meet the requirements of section 509(a)(1), (2), or (3). If, however, you do not meet these requirements for the 60 month period, you will be classified as a private foundation as of the first day of the first taxable
 24 year of the 60 month period.
(Automatic)  If you satisfy the requirements of section 507(b)(1)(B) of the Code at the end of your 60 month period, you will not be subject to the provisions of section 507(a), (c), or (g) of the Code.
 26
(Automatic)
 Grantors and donors may rely on the determination that you are not a private foundation until 90 days after the end of your advance ruling period. If you submit the required information within the 90 days, grantors and contributors may continue to rely on the advance determination until the Service makes a final determination of your foundation status.
 28
(Required)
 You are required to file Form 990–PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as a Private Foundation, until you complete your 60 month termination and are classified as a section 509(a)([1]) organization. Form 990–PF must be filed by the 15th day of the fifth month after the end of your annual accounting period. The law imposes a penalty of $20 a day, up to a maximum of $10,000 or 5 percent of your gross receipts (whichever is less), for failure to file a return on time unless there is reasonable cause for the delay. For organizations with gross receipts exceeding $1,000,000 in any year, the penalty is $100 per day per return, unless there is
 29
(Automatic)
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 return is not complete, so please be sure your return is complete before you file it.
 30
(Automatic)
 If you do not pay the tax imposed by section 4940 of the Code for any taxable year or years during the 60 month period, and it is subsequently determined that such tax is due for such year or years, you will be liable for interest in accordance with section 6601 of the Code. Since any failure to pay such taxes during the 60 month period is due to reasonable cause, the penalty under section 6651 with respect to the tax imposed by section 4940 shall not apply.
5997
(Automatic)
 If the heading of this letter indicate that an addendum applies, the addendum enclosed 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)
60 Month Period Ends:
[20V]
8011
(Required)
Addendum Applies:
[20V]
8610
(Automatic)
Enclosure(s):
Form 872
8620
(Selective)
Addendum

Exhibit 7.21.5-45  (01-01-2003)
Letter 2285 (DO/CG)
EO Favorable Determination Letter for 501(c)(9), (17), or (20) Organization With Section 505(c) Effective Date Problem

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1  We have considered your application for recognition of exemption from Federal income tax under section 501(a) of the Internal Revenue Code as an organization described in section 501(c)([2V]).
(Required)  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 Code as an organization described in section 501(c)([2V])
 2
(Required)
 for the period beginning [2V] and for subsequent years.
 3
(Required)
 Section 505(c) of the Code provides that an organization shall not be treated as an organization described in section 501(c)([2V]) for any period before giving notice that it is applying for recognition of exempt status, if such notice is given after the time prescribed by regulations.
 5
6
(Selective)
 Temporary Regulations section 1.505(c)–1T provides that an organization seeking recognition of exemption under section 501(c)([2V]) of the Code must file the notice described in section 505(c) within 15 months from the end of the month in which the organization was organized, or February 4, 1987, whichever comes later. Such notice is filed by submitting a properly completed and executed Form 1024, Application for Recognition of Exemption Under Section 501(a) or for Determination Under Section 120, with the key District Director. For purposes of section 505(c), the Form 1024 must be accompanied by certain additional information and documents specified in the above regulations section.
 7
8
(Selective)
 Temporary Regulations section .505(c)–1T provides that a trust organized on or before July 18, 1984, and seeking recognition of exemption under section 501(c)(20) of the Code must file the notice described in section 505(c) before February 4, 1987. Such notice is filed by submitting a copy of the trust instrument with the Internal Revenue Service. A trust organized after July 18, 1984, is not required to submit a separate notice if a copy of the trust instrument was filed with the Form 1024, Application for Recognition of Exemption Under Section 501(a) or for Determination Under Section 120, submitted by the qualified group legal services plan of which the trust forms a part. If a copy of the trust instrument has not been filed by the plan, the trust must submit a section 505(c) notice before February 4, 1987.
 9
(Selective)
 Our records indicate that you filed your notice on [20V], which is after the due date discussed above that applies to your case. Therefore, the provisions of section 505(c) of the Code regarding the effective date of exemption are applicable to you.
 11
(Selective)
 Our records indicate that you filed your notice on [20V], and that you do not come within the exception for the constructive filing of a notice on your behalf by the group legal services plan of which you form a part. Therefore, the provisions of section 505(c) of the Code regarding the effective date of exemption are applicable to you.
 13
(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 the calendar year. And, unless excepted, you are also liable for the 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.
 15
(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.
 16
(Automatic)
 You are required to file Form 990, Return of Organization Exempt From Income Tax, 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.
 17
(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
 18
(Automatic)
return is not complete, so please be sure your return is complete before you file it.
 19
(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.
 20
(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).
 21
(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.
 23
(Automatic)
 If you do not agree with our determination as to your effective date of exemption, 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 desire 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
 24 to file a power of attorney or tax information authorization with us.
(Automatic)  If you do not appeal this determination as to your effective date of exemption within 30 days from the date of this letter, as explained in Publication 892, this letter will become our final determination in this matter.
3325
(Selective)
 Cash and noncash benefits realized by a person on account of your activities must be included in gross income to the extent provided in the Code. No opinion is expressed or implied as to whether there is any provision available under the Code to exclude from gross income contributions to you or payments made by you. Further, no opinion is expressed or implied as to whether you are liable for taxes the under Federal Insurance Contributions Act (social security taxes) or the Federal Unemployment Tax Act on the payment of benefits. If you have any questions about these matters, please contact your key district office.
3327
(Selective)
 No opinion is expressed or implied as to whether employer contributions to you are deductible under the Code.
3329
(Selective)
 This determination does not take into account the impact, if any, of Public Law 98–369, the Deficit Reduction Act of 1984.
5997
(Automatic)
 If we have indicated in the heading of this letter that an addendum applies, the addendum enclosed is an integral part of this letter. Because this letter could help resolve any questions about your private foundation status, please 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)
Refer Reply To:
[20V]
8011
(Required)
Accounting Period Ending:
[20V]
8012
(Required)
Addendum Applies:
[20V]
8610
(Automatic)
Enclosure(s):
Publication 892
8620
(Selective)
Addendum

Exhibit 7.21.5-46  (01-01-2003)
Letter 2337 (DO/CG)
Letter Granting Extension of Time to Submit Information (User Fees)

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1
(Automatic)
 This is in response to your request for additional time to resubmit your request for a determination letter for the organization identified above. We are granting an extension of time to the date shown above. If you resubmit your request on or before that date, no additional user fee payment will be due. However, if you resubmit your request after that date, another user fee payment is required.
 2  BE SURE TO ATTACH A COPY OF THIS LETTER TO THE FRONT OF YOUR REQUEST WHEN YOU RESUBMIT IT.
   If you have any questions about this matter, please call the person whose name and telephone number are shown above.
(Automatic) Sincerely yours,
8000
(Required)
Extended Response Date:
[20V]
8600
(Automatic)
Enclosure:
Copy of this letter

Exhibit 7.21.5-47  (01-01-2003)
Letter 2381 (DO/CG)
EO Amendment — Legal Entitites

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1
(Automatic)
 We have received information showing that your organization has amended its organizing/operational documents.
 2
(Selective)
 Since you have created a new legal entity, you are considered a new organization and must reapply for recognition of exemption as required by Revenue Ruling 67–390, published in Internal Revenue Bulletin 1967–2, on page 179. The exemption letter issued to your unincorporated predecessor is not effective beyond the date of Incorporation. If you wish to be recognized as tax-exempt, you must submit the appropriate application.
 3
(Selective)
 To help us determine the effect the amendment has on your exempt status, it will be necessary for you to submit the following:
 4
(Selective)
 A copy of the amendment showing the approval by the appropriate state official.
 5
(Selective)
 A copy of the amendment signed by at least two members of your governing body specifying the date approved and adopted by the membership.
 6
(Selective)
 A copy of the petition approved by the court.
 7
(Selective)
 A copy of the amendment signed by the trustee.
 8
(Selective)
 Please indicate the section(s) of the document that was/were changed and the nature of the changes(s).
 9
(Selective)
 Our files do not contain a copy of the original document(s) which you amended. Please furnish a copy.
3000–3099  Please mail the information requested in this letter to the following address:
(Selective) [Addresses and instructions for the use of these paragraphs will be provided by the District Office.]
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.
  Thank you for your cooperation.
(Automatic) Sincerely yours,
8500
(Automatic)
Director, Exempt Organizations
8010
(Required)
Response Due Date:
[20V]

Exhibit 7.21.5-48  (01-01-2003)
Letter 2382 (DO/CG)
Second Request for Additional Information

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1
(Automatic)
 Thank you for the information recently submitted regarding your application for exemption. Unfortunately, we need more information before we can complete our consideration of your application.
 3
(Automatic)
 Please furnish the information requested on the enclosure by the response due date shown above. If you have any questions concerning this matter, or you cannot meet the response due date, please contact the person whose name and telephone number are shown in the heading of this letter.
 5
(Selective)
 If more than [10V] days are necessary to obtain State approval of your amended governing instruments, please contact us to request an extension.
3000–3099  Please mail the information requested in this letter to the following address:
(Selective) [Addresses and instructions for the use of these paragraphs will be provided by the District Office.]
5998
(Selective)
 We have sent a copy of this letter to your representative as indicated in your power of attorney.
5999  Thank you for your cooperation.
(Automatic) Sincerely yours,
8500
(Automatic)
Director, Exempt Organizations
8010
(Required)
Response Due Date:
[20V]
8610
(Automatic)
Enclosure:
List of data needed

You may place any of the standard development paragraphs, 1400–2799 from Letters 1312, 1313, and 2386, any 7000 series, and customized paragraphs (9000 series), in this letter. These paragraphs will start on the second page.

Exhibit 7.21.5-49  (01-01-2003)
Letter 2383 (DO/CG)
EO Second Request for Additional Information to Letter 1046

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1
(Required)
 Thank you for your response to our Letter 1046 dated [20V]. Before we can make a final determination of your foundation status we will need the additional information shown on the attached list. This information must be submitted by the response due date shown above.
 3
(Automatic)
 If we do not receive the information, we will presume that you are a private foundation in accordance with section 1.508–1(b) of the Income Tax Regulations. For purposes of sections 507(d) and 4940 of the Internal Revenue Code, you will be treated as a private foundation as of the first day of your first tax year for purposes of section 1.509(a)–3(e)(2) of the regulations. Also, as required by Code section 6104(c), we will notify the appropriate State officials of your classification as a private foundation.
 4
(Automatic)
 If you do not provide the requested information in a timely manner, the Internal Revenue Service will consider that you have not taken all reasonable steps to secure the determination you requested. Under Code section 7428(b)(2), if you do not take all reasonable steps in a timely manner to secure the determination, this may be considered as a failure to exhaust administrative remedies available to you within the Service. Therefore, you may lose your rights to a declaratory judgment under Code section 7428.
 5
(Automatic)
 All information should be submitted under signature of an individual having authority to act on behalf of the organization.
101
(Selective)
 Furnish a list of donors who contributed more than 2 percent of the total support received during your advance ruling period. Include the name(s) of the donor(s) and the amount(s) contributed.
102
103
(Selective)
 The information submitted shows you received [20V] percent in public support during your advance ruling period. To be classified as publicly supported, you generally must receive at least 33 1/3 percent public support. However, since you received at least 10 percent public support you may qualify as publicly supported by reason of meeting the "facts and circumstances test" . The enclosed Publication 557 describes the requirements necessary for meeting the "facts and circumstances test" . Please provide us with the information discussed in the Publication so that we can determine whether you can be classified as a publicly supported organization by reason of meeting the "facts and circumstances test" .
104
(Selective)
 Your response to item 8 of Form 8734, Support Schedule for Advance Ruling Period, reflects other receipts of $[20V]. Specify the exact source and nature of these receipts.
105
(Selective)
 Your response to item 2 of Form 8734, Support Schedule for Advance Ruling Period, reflects that you received membership fees. Describe any benefits or services furnished to members in exchange for the payment of these fees. (For example, free admissions, goods, catalogues, voting rights, etc.)
106
(Selective)
 Furnish the name and telephone number of a principal officer who may be contacted during normal business hours.
107
(Selective)
 Furnish a list of donors who contributed more than $ [20V] during your advance ruling period. Include the names of the donors and the amount each contributed.
108
(Selective)
 Complete the enclosed Form 8734, Support Schedule for Advance Ruling Period, for the year(s) ending [20V].
3000–3099  Please mail the information requested in this letter to the following address:
(Selective) [Addresses and instructions for the use of these paragraphs will be provided by the District Office.]
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.
  Thank you for your cooperation.
(Automatic) Sincerely yours,
8500
(Automatic)
Director, Exempt Organizations
8010
(Required)
Response Due Date:
[20V]
8610
(Automatic)
Enclosure(s):
List of data needed
8620
(Selective)
Facts and Circumstances Test
8630
(Selective)
Publication 557
8640
(Selective)
Form 8734

Exhibit 7.21.5-50  (01-01-2003)
Letter 2384 (DO/CG)
EO 501(c)(9) Development Letter

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1
(Automatic)
 We are considering your application for recognition of exemption from Federal income tax under section 501(a) of the Internal Revenue Code as an organization described in section 501(c)(9). On August 28, 1987, the Internal Revenue Service published, as part of the Internal Revenue Manual, "safe harbor guidelines" for ruling on applications for exemption under section 501(c)(9) of the Code.
 3
(Automatic)
 Generally, the "safe harbor guidelines" provide that a favorable ruling or determination will be issued if the benefits provided through a voluntary employees’ beneficiary association (VEBA) are the same for all employees. Seasonal and half-time employees, employees under 21 or with less than 3 years of service and employees covered by a collective bargaining agreement can be excluded. Income replacement benefits (such as life insurance, disability, severance pay or supplemental unemployment benefits) provided as a uniform percentage of compensation would ordinarily meet the "safe harbor guidelines" . If the benefits provided through your VEBA meet the guidelines and you other-
 4
(Automatic)
wise qualify for exemption, a favorable ruling will be issued. If not, it may be necessary to suspend action on your application.
 5
(Automatic)
 The information requested on the attached page is needed to determine whether or not your VEBA falls within the guidelines and otherwise meets the requirements of section 501(c)(9) of the Code and the regulations thereunder. Please submit the items requested below over the signature of an officer, director, or trustee of the organization.
 7
(Automatic)
 We will defer action on your request until the date shown above to enable you to submit the requested information. If we do not hear from you within that time, we will assume that you do not want us to consider your request further and we will close your case.
 8
(Selective)
 If more than [10V] days are necessary to obtain State approval of your amended governing instruments, please contact us to request an extension.
2621
(Selective)
 Is participation in your plan voluntary? What action, if any, must employees take to participate in the plan?
2622
(Selective)
 Are any employee contributions required for any benefits provided by the VEBA? If so, specify all contributions required, including dollar amounts.
2623
(Selective)
 Are any of your benefits self-funded? If so, specify which ones and give details.
2624
(Selective)
 Submit complete financial statements for the VEBA trust for the year(s) ending [20V].
2625
(Selective)
 Submit copies of all insurance policies being used to provide benefits. If the policies are not issued to the VEBA as policyholder, are you willing to change the policies so that they are in the name of the VEBA?
2626
(Selective)
 With respect to any of your benefits which are self-funded, provide a copy of any report providing actuarial assumptions and calculations used to determine the contributions to the VEBA.
2627
(Selective)
 To the extent not previously submitted, provide copies of all summary plan descriptions or other booklets or material describing the benefits you provide.
2628
(Selective)
 Other than insurance policies, is the VEBA a party to any contracts, leases or other agreements? If so, please submit a copy of each such agreement.
2629
(Selective)
 If any of your benefits are provided pursuant to the terms of a collective bargaining agreement, submit a copy of the agreement.
2630
(Selective)
 If the sponsoring employer is affiliated through stock ownership with any other employer, please describe the relationship and the percentage of ownership. For purposes of this inquiry, you can ignore any affiliation in which total stock ownership is less than 10 percent.
2631
(Selective)
 Section 1.501(c)(9)–2(a)(1) of the regulations requires that the members of a VEBA share an employment related common bond. Please explain the nature of the employment related common bond shared by your members. If you claim that your members are employees of employers in the same line of business in the same geographic locale, please state the name, address and line of business of each participating employer.
2632
(Selective)
 With respect to your [20V] benefits, please provide the following information:
2633
(Selective)
 With respect to your group term life insurance benefits, please provide the following information:
2634
(Selective)
 With respect to your self-funded medical benefits, please provide the following information:
2635 Total number of employees ------
(Selective)  Less the number of employees excluded because they:
— have less than 3 year of service ------
— are part-time seasonal employees ------
— are covered under a collective bargaining agreement under which benefits were the subject of good faith bargaining ------
— are nonresident aliens with no U.S. source income from the employer ------
2636
(Selective)
 — are excluded from coverage for some reason other than those specified above ------
Number of employees eligible for participation ------
Number of employees actually participating  ------
2637  If the total number of employees eligible for participation is not equal to the employees actually participating, please provide the number of employees who are participants in the plan and who are considered highly compensated employees. Highly compensated employees are those individuals who are:
(Selective)  — the 5 highest paid officers of the employer;
— a 10 percent or more owner of the employer, or;
— among the highest paid 10 percent of employees.
2638  If the total number of employees eligible for participation is not equal to the employees actually participating, please provide the number of employees who are participants in the plan and who are key employees as defined by section 416(i) of the Code. Key employees are those individuals who are:
   — officers of the employer with annual compensation of more than $45,000;
   — 1 of the 10 employees with annual compensation of more than $45,000 and owning the largest interests in the employer;
   — a 5 percent owner of the employer; or
2639
(Selective)
 — a 1 percent owner of the employer with annual compensation greater than $150,000.
2640
(Selective)
 Indicate whether you are willing to amend your documents so that each covered participant possesses the right to designate beneficiaries with respect to benefits provided by you.
2641
(Selective)
 Indicate whether or not there have been any substantive changes in the benefits funded by the trust or in the eligibility for benefits within the past three years. If so, please furnish a copy of such changes.
2642
(Selective)
 Update the information submitted with your letter dated [20V]
2643
(Selective)
for the year(s) [20V].
2644
(Selective)
 List any new subsidiaries now covered by the trust. If the employees of such subsidiaries receive different benefits than the other participants, please explain why. Also, please submit a schedule of the salary and benefits received by such employees.
2645
(Selective)
 State the total number of participants in your plan.
2646  Provide the following information for each employee of [20V]:
(Selective) — name;
— age;
— years of service;
2647  — compensation for that year ending [20V];
   — whether or not covered by the plan;
   — whether or not a shareholder of the employer corporation and, if so, the percentage of stock owned;
(Selective)  — relationship, if any, to any other employee.
2648
(Selective)
 Indicate whether or not benefits provided by the plan have changed from those previously reported. If so, furnish a copy of such changes.
2649
(Selective)
 State whether or not any benefits vary in amount or eligibility standards with respect to highly compensated individuals described in section 414(q) of the Code.
2650  Section 1.501(c)(9)–1 of the Income Tax Regulations provides:
   "To be described in section 501(c)(9), an organization must meet all of the following requirements:
(Selective)  — The organization is an employees’ association,
— Membership in the association is voluntary,
2651  — The organization provides for the payment of life, sick, accident or other benefits to its members or their dependents or designated beneficiaries, and substantially all of its operations are in furtherance of providing such benefits, and
(Selective)  — No part of the net earnings of the organization inures, other than by payment of the benefits referred to in paragraph (c) of this section, to the benefit of any private shareholder or individual."
2652
(Selective)
 If the association’s corporate charter, articles of association, trust instrument, or other written instrument by which the association was created, as amended from time to time, provides that on dissolution its assets will be distributed to its members’ contributing employers, or if in the absence of such provisions the law of the state in which the association was created provides for distribution to the contributing employers, the association is not described in section 501(c)(9).
2653   "Other benefits" includes only benefits that are similar to life, sick, or accident benefits. A benefit is similar to a life, sick, or accident benefit if:
   — It is intended to safeguard or improve the health of a member or a member’s dependents, or
(Selective)  — It protects against a contingency that interrupts or impairs a member’s earning power.
2654
(Selective)
 Furnish copies of all contracts or other agreements, including insurance policies, to which the trust is a party, for which the association is a party, or for which the association is paying.
2655 Give the following information for all employees of [20V]:
(Selective)  — name,
— annual compensation,
— age,
— date hired,
— whether an officer or shareholder, and
— whether or not covered by this plan.
2656
(Selective)
 Show any family relationships among the persons listed and state the percentage of stock owned by each shareholder who owns more than 5 percent of the employer’s stock.
2657
(Selective)
 Furnish copies of your plan document, any plan summary provided to employees, and any other documents that describe the benefits you are providing.
2658  Some of your benefits are based on employee job classification. For each classification, provide the following information:
(Selective)  — number of employees so classified;
— high, low and average annual compensation of the group; and
— number of officers or shareholders included in the group.
2659
(Selective)
 State whether employees are required to make any contributions toward the cost of coverage. If so, provide a complete schedule of all required contributions.
2660
(Selective)
 State the actuarial assumptions on which employer contributions to you are based.
2661
(Selective)
 State whether all the participating employers referred to in your application are wholly owned subsidiaries of [20V]. If not, provide the following information for each:
2662
(Selective)
 — name,
— location,
— line of business, and
— relationship to [20V], including applicable percentages of stock ownership.
2663  Your long-term disability plan provides for the payment of benefits based on a uniform percentage of compensation. However, the initial benefit is then subject to offset by several other kinds of benefits, listed on page [10V] of the plan. Such offsets are permissible if one of the following conditions is met:
(Selective)  — The offsetting benefits are also employer-funded, and the ultimate benefit (after offsets) is proportional to compensation.
 OR
2664  — All of the following conditions are met:
   —The offsetting benefits are employer-funded;
   —The offsetting benefits are similar to the disability benefit (that is, payable by reason of disability); and
(Selective)  —The offsetting benefits are paid on comparable time (that is, no additional requirement other than disability, such as age or dependents, is imposed).
2665
(Selective)
 Explain how each of the offsets to your long-term disability benefits meets one of those requirements.
2666
(Selective)
 Section 1.501(c)(9)–4(b) of the Income Tax Regulations provides, in part, that "... payment to highly compensated personnel of benefits that are disproportionate in relation to benefits received by other members of the association will constitute prohibited inurement. Also, the payment to similarly situated employees of benefits that differ in kind or amount will constitute prohibited inurement unless the difference can be justified on the basis of objective and reasonable standards ..." Your plan contains differences in benefits offered to different group of employees. Please explain how each of these differences meets the requirements of the regulations section quoted above.
3000–3099  Please mail the information requested in this letter to the following address:
(Selective) [Addresses and instructions for the use of these paragraphs will be provided by the District Office.]
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 above.
  Thank you for your cooperation.
(Automatic) Sincerely yours,
8500
(Automatic)
Director, Exempt Organizations
8010
(Required)
Response Due Date:
[20V]

Exhibit 7.21.5-51  (01-01-2003)
Letter 2385 (DO/CG)
EO Failure To Establish Adverse Letter IRC 521

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1
(Automatic)
 On the above date, we wrote you about your Form 1028, Application for Recognition of Exemption Under Section 521 of the Internal Revenue Code. In that letter, we asked you to send us additional information to show that you have met all legal requirements.
 3
(Automatic)
 To date we have not received the information necessary to make a determination of your tax-exempt status. Therefore, we cannot process your application and have closed your case.
 4  User fees are not refundable for requests that are closed because information necessary to make a determination is not received. However, if you send us a new Form 1028 within 90 days from the date of this letter, no additional amount is due. If you send a new Form 1028 more than 90 days after the date of this letter, another user fee payment is required.
(Automatic)  If you do send us a new Form 1028, PLEASE ATTACHED A COPY OF THIS LETTER and be sure your application includes the information we requested in our earlier letter referred to above.
 5
(Automatic)
 You are required to file Federal income tax returns on the form and for the years shown above. File these returns with your key District Director for exempt organization matters within 60 days from the date of this letter, unless a request for an extension of time is granted. File returns for later tax years with the appropriate service center indicated in the instructions for those returns.
 7
(Automatic)
 If you have any questions about this matter, please write to the person whose name is shown at the top of this letter, or call that person at the telephone number shown. If you write to us, please provide your telephone number and the most convenient time for us to call in case we need more information.
5998
(Selective)
 We have sent a copy of this letter to your representative as indicated in your power of attorney.
5999  Thank you for your cooperation.
(Automatic) Sincerely yours,
8500
(Automatic)
Director, Exempt Organizations
8010
(Required)
Our Letter Dated:
[20V]
8011
(Required)
Form:
[4V]
8012
(Required)
Tax Years:
[20V]
8013
(Automatic)
90-Day User Fee Response Date:

Exhibit 7.21.5-52  (01-01-2003)
Letter 2386 (DO/CG)
Development Letter For EO Applications on Form 1028

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1  Before we can recognize your organization as being exempt from Federal income tax, we must have enough information to show that you have met all legal requirements. You did not include the information needed to make that determination on your Form 1028, Application for Recognition of Exemption Under Section 521 of the Internal Revenue Code.
(Automatic)  To help us determine whether your organization is exempt from Federal income tax, please send us the requested information by the above date. We can then complete our review of your application.
 2
(Automatic)
 If we do not hear from you within that time, we will assume you do not want us to consider the matter further and will close your case. As a result, the Internal Revenue Service will treat your organization as a taxable entity. If we receive the information after the response due date, we may ask you to send us a new Form 1028.
 3
(Selective)
 If more than [10V] days are necessary to obtain State approval of your amended governing instruments, please contact us to request an extension.
2007
(Selective)
 We are considering your application for tax-exempt status and find that it is incomplete. We need the following information over the signature of one of your principal officers:
2032
(Selective)
 Your organizing document empowers you to engage in a variety of activities of a commercial nature ordinarily carried on by businesses operated for profit, and which for that reason are inconsistent with the purposes and activities of an organization exempt under the Code section for which you applied.
2033
(Selective)
 Indicate the offices or positions held by the persons listed in Part III, item 4, of Form [4V].
2034
(Selective)
 Complete Schedule [15V]. This schedule applies to your type of organization or the Code section under which you are applying.
2035
(Selective)
 Have an authorized officer sign your application before you resubmit it.
2036
(Selective)
 Submit a list of your officers, description of their duties and amount of time devoted to each, and their annual compensation.
2037
(Selective)
 Furnish a copy of the Articles of Incorporation signed by the judge of probate.
2038
(Selective)
 Have an authorized officer sign the enclosed copy of your bylaws or constitution, or both.
2039
(Selective)
 Your fiscal year (accounting period) shown in Part I, item [13V] of your application is inconsistent with the accounting periods given in the financial data you submitted. Please make sure you show the correct accounting period on the application form and submit financial data for years consistent with that accounting period.
2051
(Selective)
 It will be necessary for you to amend your [20V]. Please add the following items to your existing provisions.
2052
(Selective)
 It will be necessary for you to amend your [20V]. Please delete the following section(s).
2053
(Selective)
 It will be necessary for you to amend your [20V]. Please delete the above section(s) and add the following provisions:
2055
(Selective)
 Since your organization is not incorporated, please submit a copy of your [20V] signed and dated by an authorized officer.
2062
(Selective)
 It will be necessary for you to amend your Articles of Incorporation.
2063
(Selective)
 It will be necessary for you to amend your Articles of Association.
2064
(Selective)
 It will be necessary for you to amend your bylaws.
2710
2711
 Section 521(b) of the Internal Revenue Code provides:
(Selective)   "The farmers’ cooperatives exempt from taxation to the extent provided in subsection (a) are farmers’, fruit growers’ or like associations organized and operated on a cooperative basis (A) for the purpose of marketing the products of members or other producers, and turning back to them the proceeds of sales, less the necessary marketing expenses, on the basis of either the quantity or the value of the products furnished by them, or (B) for the purpose of purchasing supplies and equipment for the use of members or other persons, and turning over such supplies and equipment to them at actual cost, plus necessary expenses."
2712
2713
(Selective)
 The general requirements for maintaining exempt status of an organization (in addition to organizational tests) under section 521 of the Code are: (1) Substantially all the voting stock or memberships must be held by producers who are marketing their products or purchasing their supplies and equipment through the association; (2) products marketed for nonmembers must not exceed the value of products marketed for members; (3) supplies and equipment purchased for nonmembers must not exceed the value of supplies and equipment purchased for members provided purchases made for persons who are neither members nor producers do not exceed 15 percent of the value of all purchases; and (4) net proceeds from the businesses must be allocated or apportioned to members and nonmembers on a patronage basis.
2714
(Selective)
 As noted in the foregoing Code section with respect to the marketing of products, a farmers’ cooperative must, to qualify for exemption, be organized and operated on a cooperative basis to market the products of members or other producers and turn back to them the sales proceeds, less necessary marketing expenses, based on either quantity or value of the products they furnish. A farmers’ cooperative association is not operated on a cooperative basis unless it distributes, allocates or apportions earnings to patrons on a patronage basis. Please furnish information showing that the patronage allocation was made.
3000  Please mail the information requested in this letter to the following address:
(Selective) [Addresses and instructions for the use of these paragraphs will be provided by the District Office.]
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.
  Thank you for your cooperation.
(Automatic) Sincerely yours,
8500
(Automatic)
Director, Exempt Organizations
8010
(Required)
Response Due Date:
[20V]

Exhibit 7.21.5-53  (01-01-2003)
Letter 2419 (DO/CG)
EO Paragraphs for Group Exemption Letters

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1
(Required)
 We have considered your application for a group exemption letter recognizing your subordinates as exempt from federal income tax under section 501(a) of the Internal Revenue Code as organizations of the type described in section 501(c)([2V]).
 2
(Required)
 Our records show that you were recognized as exempt from federal income tax under section 501(c)([2V]) of the Code. Your exemption letter remains in effect.
 3
(Required)
 Based on information you supplied, we recognize your subordinates whose names appear on the list you submitted as exempt from federal income tax under section 501(c)([2V]) of the Code.
 4
(Selective)
 Additionally, we have classified the organizations that you operate, supervise, or control, and that are covered by your notification to us, as organizations that are not private foundations because they are organizations of the type described in section 509(a) of the Code.
 5
(Selective)
 Additionally, we have classified the organizations that you operate, supervise, or control, and that are covered by your notification to us, as organizations that are not private foundations because they are organizations of the type described in section 509(a)([1V]) of the Code.
 6
(Selective)
 Additionally, we have classified the organizations that you operate, supervise, or control, and that are covered by your notification to us, as organizations that are not private foundations because they are organizations of the type described in sections 509(a)(1) and 170(b)(1)(A)([2V]) of the Code.
 7
(Selective)
 Donors may deduct contributions to your subordinates as provided in section 170 of the Code. Bequests, legacies, devises, transfers, or gifts to your subordinates or for their use are deductible for federal estate and gift tax purposes if they meet the applicable provisions of section 2055, 2106, and 2522 of the Code.
 8
(Selective)
 This determination is based on the fact that at least 75 percent of reach of your subordinates’ members are past or present members of the Armed Forces of the United States, as defined in Code section 501(c)(19). It is also based on the fact that substantially all of your subordinates’ other members, if any, are individuals who are cadets, or are spouses, widows, or widowers of past or present members of the Armed Forces of the United States or of cadets. Please let us know if any of your subordinates no longer meets these membership percentage requirements.
 9
(Selective)
 Donors may deduct contributions made to or for the use of your subordinates that qualify as war veterans organizations. To so qualify, at least 90 percent of a subordinate’s members must be war veterans.
 10
(Selective)
 Your subordinates are not required to file Form 990, Return of Organization Exempt From Income Tax, if they qualify as churches or integrated auxiliaries of churches or otherwise meet the exceptions in section 1.6033–2(g) of the Income Tax Regulations.
 11
12
13
(Selective)
 Your subordinates whose gross receipts each year are normally more than $25,000 are each required to file Form 990, Return of Organization Exempt From Income Tax, by the 15th day of the fifth month after the end of their annual accounting period. If you prefer, you may file a group return for those subordinates that authorize you in writing to include them in that return. If you are required to file Form 990 for your own activities, you must file a separate return and may not be included on any group return that you file for your subordinates. The law imposes a penalty of $20 a day when a return is filed late, unless there is reasonable cause for the delay. However, the maximum penalty imposed 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 return is not complete, so your subordinates should make sure their returns are complete before filing them. Please advise your subordinates that, if they receive a Form 990 package in the mail, they should file the return even if their gross receipts do not exceed the $25,000 minimum. If not required to file, a subordinate should simply attach the label provided, check the box in the heading to indicate that its annual gross receipts are normally $25,000 or less and sign the return. This will allow us to update our records to show that the subordinate is not required to file and to delete that subordinate from the list of organizations that will receive Form 990 packages in future years.
 14
(Automatic)
 Your subordinate organizations are required to make their annual return available for public inspection without charge for three years after the due date of the return. You or your subordinates are also required to make available for inspection a copy of your group exemption application, any supporting documents and this exemption letter. In addition, you or your subordinates are required to provide a copy of any or all of the public inspection documents described above to any individual who requests such documents described above to any individual who requests such documents in person or writing. The copied material s shall be provided without charge, other than a reasonable fee for reporduction and actual postage costs.
 15
(Automatic)
 However, you will not be requried to provide copies of public inspection documents that are made widely available, such as by properly posting them on the Internet (World Wide Web). Failure to make these documents available for public inspection may subject the subordinate 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).
 17
(Automatic)
 Your subordinates are not required to file federal income tax returns unless subject to the tax on unrelated business income under section 511 of the Code. Each organization subject to this tax must file Form 990–T, Exempt Organization Business Income Tax Return. In this letter we are not determining whether any of your subordinates’ present or proposed activities are unrelated trade or business as defined in section 513 of the Code.
 18
(Selective)
 As of January 1, 1984, each of your subordinates is liable for social security taxes under the Federal Insurance Contributions Act on remuneration of $100 or more they pay to each of their employees during a calendar year. Your subordinates are not liable for the tax imposed under the Federal Unemployment Tax Act (FUTA).
 19
(Selective)
 As of January 1, 1984, each of your subordinates is liable for social security (FICA) taxes for each employee to whom the subordinate paid $100 or more during a calendar year. This does not apply, however, to any subordinate that makes or has made a timely election under section 3121(w) of the Code to be exempt from such tax. Your subordinates are not liable for tax imposed under the Federal Unemployment Tax Act (FUTA).
 20
(Selective)
 Unless specifically excepted, each of your subordinates is liable for social security (FICA) taxes for each employee to whom the subordinate paid $100 or more during a calendar year and unemployment (FUTA) taxes for each employee to whom the subordinate paid $50 or more in a calendar quarter. FUTA tax is due for each of these employees only if the subordinate paid total wages of $1,500 or more during any calendar quarter, or if the subordinate had any employees in any 20 calendar weeks during the year.
 27  Each year, at least 90 days before the end of your annual accounting period, please send the items listed below to the Internal Revenue Service Center at the address shown below.
   1. A statement describing any changes during the year in the p purposes, character, or method of operation of your subordinates;
(Automatic)  2. A list showing the names, mailing addresses (including Postal ZIP codes), actual addresses if different, and employer identification numbers of subordinates that, since your previous report:
 28   a. Changed names or address;
b. Were deleted from your roster; or
c. Were added to your roster.
  3. For subordinates to be added, attach:
    a. A statement that the information on which your present group exemption letter is based applies to the new subordinates;
(Automatic)   b. A statement that each has given you written authorization to add its name to the roster;
 29   c. A list of those to which the Service previously issued exemption rulings or determination letters;
    d. A statement that none of the subordinates is a private foundation as defined in section 509(a) of the Code if the group exemption letter covers organizations described in section 501(c)(3);
    e. The street address of each subordinate whose mailing address is a P.O. Box; and
(Automatic)   f. The information required by Revenue Procedure 75–50, 1975–2 C.B. 587, for each subordinate that is a school
30   claiming exemption under section 501(c)(3). Also include any other information necessary to establish that the school is complying with the requirements of Revenue Ruling 71–447, 1971–2 C.B. 230. This is the same information required by Schedule A, Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code.
(Automatic)  4. If applicable, a statement that your group exemption roster did not change since your previous report.
3000  The above information should be sent, “Attention: Entity Control Unit”' to the following address:
(Selective) Internal Revenue Service Center Ogden,UT 84204
3040  The above information should be sent, “Attention: Entity Control Unit”' to the following address:
(Selective) Internal Revenue Service Center P.O.Box 245
  Bensalem, PA 19255
3211
(Selective)
 This determination does not apply to any of your subsidiaries organized and operated in a foreign country.
3212
(Selective)
 We are enclosing a copy of Revenue Procedure 75–50. This sets forth guidelines and recordkeeping requirements for private schools recognized as exempt from federal income tax under section 501(c)(3) of the Code. You should advise those subordinates that operate schools of the requirements of this procedure.
3213
(Automatic)
 Your Group Exemption Number is [4V]. Your subordinates are required to include this number on each Form 990, Return of Organization Exempt From Income Tax, and Form 990–T, Exempt Organization Business Income Tax Return, that they file. Please advise your subordinates of this requirement and provide them with the Group Exemption Number.
5997
(Automatic)
If the heading of this letter indicates that an addendum applies, the enclosed addendum is an integral part of this letter. Because this letter could help resolve any questions about the exempt status and foundation status of your subordinates, you should keep it for your 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, Exempt Organizations
8010
(Required)
Addendum Applies:
[20V]
8610
(Selective)
Enclosure(s):
Addendum

Exhibit 7.21.5-54  (01-01-2003)
Letter 2435 (DO/CG)
EO Failure to Establish Adverse Letter 501(c)(3) — Church

EDS
Paragraph
Numbers
Text  
   Employer Identification Number:
   DLN:
   Person to Contact:
    ID#:
   Contact Telephone Number:
[Salutation]    
 1
(Automatic)
 On the above date we wrote you about your Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code. In that letter we asked you to send us additional information to show that you have met all legal requirements. To date we have not received the information necessary to make a determination of your tax-exempt status.
 3
(Automatic)
 We therefore cannot process your application for recognition under Code section 501(c)(3) and have closed your case. Because you have not provided sufficient information to establish exemption, no advance assurance can be given that contributions to your organization are deductible under section 170 of the Code.
 4  User fees are not refundable for requests that are closed because information necessary to make a determination is not received. However, if you send us a new Form 1023 within 90 days from the date of this letter, no additional amount is due. If you send a new Form 1023 more than 90 days after the date of this letter, another user fee payment is required.
(Automatic)  If you do send us a new Form 1023, PLEASE ATTACH A COPY OF THIS LETTER and be sure your application includes the information we requested in our earlier letter referred to above.
8500
(Automatic)
Director, Exempt Organizations
8010
(Required)
Our Letter Dated:
[20V]
8011
(Automatic)
90-Day User Fee Response Date:

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