Restrictions on church inquiries and examinations apply only to churches (including organizations claiming to be churches if such status has not been recognized by the IRS) and conventions or associations of churches. They do not apply to related persons or organizations. Thus, for example, the rules do not apply to schools that, although operated by a church, are organized as separate legal entities. Similarly, the rules do not apply to integrated auxiliaries of a church.
Restrictions on church inquiries and examinations do not apply to all church inquiries by the IRS. See Situations in which church audit procedures do not apply for more information.
The procedures of Internal Revenue Code section 7611 will be used in initiating and conducting any inquiry or examination into whether an excess benefit transaction (as that term is used in Code section 4958) has occurred between a church and an insider.