Information For...

For you and your family
Standard mileage and other information

Forms and Instructions

Individual Tax Return
Instructions for Form 1040
Request for Taxpayer Identification Number (TIN) and Certification
Request for Transcript of Tax Return

 

Employee's Withholding Allowance Certificate
Employer's Quarterly Federal Tax Return
Employers engaged in a trade or business who pay compensation
Installment Agreement Request

Popular For Tax Pros

Amend/Fix Return
Apply for Power of Attorney
Apply for an ITIN
Rules Governing Practice before IRS

Down Payment Assistance Programs: IRS Guidance on 501(c)(3) Exemption

Has the IRS issued any guidance on the criteria for exemption, under section 501(c)(3), of organizations that sponsor down payment assistance programs?

Revenue Ruling 2006-27 provides guidance to organizations applying for tax exemption and those exempt under Internal Revenue Code section 501(c)(3) that provide down payment assistance to homebuyers. The ruling affirms that down payment assistance programs that are not seller-funded can further exempt purposes by assisting low-income home buyers or by combating community deterioration.  The ruling makes it clear that organizations providing seller-funded down payment assistance will not qualify for exemption. The ruling also describes the tax treatment of down payment assistance to buyers for purposes of the exclusion from gross income as a gift under Code section 102 or inclusion in the home’s basis under section 1012.