7.1.2 Exempt Organizations Administrative Procedures

Manual Transmittal

November 20, 2017


(1) This transmits revised text and exhibits for IRM 7.1.2, Rulings and Agreements, TE/GE Administrative Procedures and Programs, Exempt Organizations Administrative Procedures.

Material Changes

(1) This IRM was revised to incorporate Interim Guidance Memorandum TEGE-07-0117-0006 regarding matters transferred from the Tax Exempt and Government Entities Division (TE/GE) to Office of Associate Chief Counsel (Tax Exempt and Government Entities) (TEGE Counsel).

(2) The Technical Assistance and Memorandum Directive sections were removed along with the exhibits related to EO Technical because the EO Technical division was disbanded.

(3) Information about EO Examinations was removed.

Effect on Other Documents

This supersedes IRM 7.1.2, dated September 22, 2014.
This revision incorporates Interim Guidance Memorandum TEGE-07-0117-0006, Reissuance of IRM Sections Impacted by the Realignment of Work between TE/GE and Chief Counsel (TEGE).


Tax Exempt and Government Entities
Exempt Organizations

Effective Date


Margaret Von Lienen
Director, Exempt Organizations
Tax Exempt and Government Entities


  1. Purpose: This IRM describes the administrative procedures governing Exempt Organizations (EO) Rulings & Agreements under the jurisdiction of Tax Exempt and Government Entities (TE/GE). It lists the responsibilities of EO Rulings & Agreements employees and provides information about the assistance available to employees including written or verbal technical support from TEGE Division Counsel and technical advice furnished by the Office of Associate Chief Counsel. This IRM also provides information on processing technical correspondence.

  2. Audience: The procedures in this manual apply to Exempt Organizations Rulings & Agreements employees.

  3. Policy Owner: Director, Exempt Organizations.

  4. Program Owner: Exempt Organizations.


  1. EO Rulings & Agreements is responsible for determinations related to exempt organizations and for the operation of EO Knowledge Management.


  1. Rev. Proc. 2017-5, updated annually, lists procedures for issuing determination letters on exempt status (in response to applications for recognition of exemption from federal income tax under Section 501 or 521 other than those subject to Rev. Proc. 2017-4, updated annually, private foundation status, and other determinations related to exempt organizations). The determination letters are under the jurisdiction of the Director, EO Rulings and Agreements.

  2. Rev. Proc. 2017-5, updated annually, also provides information on:

    1. Exhaustion of administrative remedies for declaratory judgment under IRC 7428

    2. Applicable user fees for requesting determination letters


  1. EO Rulings & Agreements employees are responsible for:

    • Determination letters (see IRM 7.20.1, Exempt Organizations Determination Letter Overview)

    • General correspondence

    • EO Knowledge Management (see IRM 1.4.7, TE/GE Knowledge Network (K-Net) Administration)

Program Controls

  1. The Internal Revenue Bulletin (I.R.B.), published bi-weekly, is the authoritative instrument for the publication of the official procedures of the Service. A revenue procedure is an official statement of a procedure published in the Bulletin that either affects the rights or duties of taxpayers or other members of the public under the Internal Revenue Code and related statutes, treaties, and regulations or, although not necessarily affecting the rights and duties of the public, should be a matter of public knowledge. See Rev. Proc. 89-14, especially section 3.02.


  1. The table below lists the acronyms used in this manual section.

    Acronym Definition
    EO Exempt Organizations
    C&L Communications and Liaison
    IG Interim Guidance
    IMD Internal Management Documents
    IRB Internal Revenue Bulletin
    IRC Internal Revenue Code
    IRM Internal Revenue Manual
    K-Net Knowledge Network
    Rev. Proc. Revenue Procedure
    STA Senior Technical Advisor
    TE/GE Tax Exempt and Government Entities

Related Resources

  1. The IRS adopted the Taxpayer Bill of Rights in June 2014. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3). For additional information about the Taxpayer Bill of Rights see http://irweb.irs.gov/AboutIRS/tbor/default.aspx.


  1. TEGE Division Counsel provides written or verbal technical support to EO Rulings and Agreements. Written advice may be presented as technical advice, technical assistance, or memorandum, depending on the nature of the matter.

    1. EO Rulings and Agreements may request assistance on a technical issue raised during a determination letter request.

    2. TEGE Division Counsel may provide support when there is a need for action but there is inadequate published precedent for the issue.

  2. EO Knowledge Management provides technical support to EO Rulings and Agreements and Examinations. See IRM 1.4.7.

Technical Advice

  1. "Technical advice" means advice or guidance furnished by the Office of Associate Chief Counsel (Tax Exempt and Government Entities) in a memorandum that responds to any request submitted under Rev. Proc. 2017-2 (updated annually) for assistance on any technical or procedural question that develops during any proceeding before the IRS. Before requesting technical advice, assistance and a recommendation must first be requested from TEGE Division Counsel.

Technical Correspondence

  1. EO Rulings and Agreements processes technical correspondence that is sent to and is addressed to the EO Director.

Interim Guidance

  1. Interim guidance is an internal management document that provides immediate, time-sensitive, or temporary instructions to employees. The guidance communicates procedural directions, guidelines, or standards to employees in the performance of their assigned duties. Generally, interim guidance modifies procedures in a currently published IRM section and is typically issued through memoranda. Interim guidance has a recommended one-year time period but may be issued for up to two years. (See IRM, Interim Guidance Effective Period, for more information.) If the guidance is intended to be permanent, it will be incorporated into the IRM as soon as possible, but no later than the expiration date.

  2. Refer to Exhibit 7.1.2-1 for an EO flow chart for publishing interim guidance memoranda. These procedures supplement interim guidance procedures outlined in IRM 1.11.10, Interim Guidance Process.

EO Flow Chart for Publishing Interim Guidance Memoranda

Step Responsible Party Action
1 Functional office Draft interim guidance (IG) memorandum following the guidelines in IRM 1.11.10 and send to EO IMD Coordinator for review.
2 EO IMD Coordinator
  • Review IG for structure, IMD standards, grammar, etc., and coordinate corrections with functional office (collaborate with TE/GE Communications & Liaison (C&L)).

  • Send IG to EO Director's Senior Technical Advisor (STA (EO)).

3 STA (EO)
  • Review IG for technical and procedural content.

  • Send IG to EO Director for approval with any comments or concerns noted.

4 EO Director
  • Review IG (including confirming E-FOIA posting and/or any OUO designation) and return (through EO IMD Coordinator) to functional office with any revisions (Repeat steps 1- 3 as necessary).

  • Approve and return IG (though EO IMD Coordinator) to functional office.

5 Functional office
  • Send IG to TE/GE Commissioner’s Senior Technical Advisor (STA (TE/GE)) for review.

  • Address STA (TE/GE) comments and, if making substantial changes, return to STA (EO) for concurrence.

6 Functional Office Send IG for external clearance following IRM 1.11.10 , considering comments and consulting with the STA (EO) as necessary.
7 Functional Office Prepare IG for publishing:
  • Secure control number from TE/GE IMD coordinator

  • Secure signature of issuing official (or designee)

  • Prepare 508 compliant copy for posting

  • Distribute IG to affected employees

  • Submit 508 copy of IG (and supporting documents) through TE/GE IMD Coordinator (for publication)

  • Submit copy of IG to C&L for posting to TE/GE Connect, http://tege.web.irs.gov