Religious, Charitable, etc., Institutions and Community Chest

Department of the Treasury
Internal Revenue Service
IRS Tax Exempt and Government Entities
Number: 202240027
Release Date: 1 or, /2022
Ull: 501.03-00
CERTIFIED MAIL - RETlJRN RECEIPT REQlJESTED Dear
Why we are sending you this letter
Date:Ausust 26, 2021
Taxpayer ID number:
Fenn:
Tax periods ended:
Penon to contact:
Name:
IOm.mber:
Telephone:
Fax:
This is a fmal determination that you don't qualify for exemption from federal income tax under Internal Revenue Code (IRC) Section 501 (a) as an organization described in IRC Section 501 ( c )(3), effective . Your detennination letter dated • is revoked Our adverse determination as to your exempt status was made for the following reasons: You bave not established that you are operated exclusively for an exempt purpose wit bin the meaning of IRC Section 501(c)(3). You have failed to keep and retain records to determine whether you have been operating in accordance with the requirements for organizations exempt under IRC Section 50l(c)(3), and to provide records to the Internal Revenue Service upon reasonable requests as required by IRC Sections 6001 and 6033(a)(l).
Organizations that are not exempt tmder IRC Section 501 generally are required to file federal income tax returns and pay tax. where applicable. For further instmctions, forms and information please visit www.irs.gov.
Contributions to your organization are no longer deductible tmder IRC Section 170.
What you must do if you disagree with this determination · If you want to contest our f mal determination, you have 90 days from the date this detenuination letter was mailed to you to file a petition or complaint in one of the three federal com1s listed below.
How to file your action for declaratory judgment
If you decide to contest this determination, you may file an action for declaratory judgment under the provisions of IRC Section 7428 in one of the following three venues: 1) United States Tax Court, 2) the United States Court of Federal Claims or 3) the United States District Court for tbe District of Columbia.
Please contact the clerk of the appropriate com1 for rules and tbe appropriate forms for filing an action for declaratory judgment by referring to the enclosed Publication 892, How to Appeal an IRS Determination on Tax-Exeu1pt Status. You may write to the courts at the following addresses:
United States Tax Court U.S. Court of Federal Claims U.S. District Court for the District ofCohtmbia 400 Second Street, NW 717 Madison Place, NW 333 Comtitution Ave., N. W.
Washington, DC 20217 Washington, DC 20439 Washington, DC 20001 Processing of income tax returns and assessments of any taxes due will not be delayed if you file a petition for declaratory j~ent under IRC Section 7428.
Letter 6337 (12-2020) catalog Number 74808E We'll notify the appropriate state officials (as permitted by law) of our determination that you aren't an organization described in IRC Section 501(c)(3).
Information about the IRS Taxpayer Advocate Service
The IRS office whose phone number appears at the top of the notice can best address and access your tax information and help get you answers. However, you may be eligible for free help from the Taxpayer Advocate Service (T AS) if you can't resolve your tax problem with the IRS, or you believe an IRS procedure just isn't working as it should. T AS is an independent organization within the IRS that helps taxpayers and protects taxpayer rights. Contact your local Taxpayer Advocate Office at:
Or call TAS at 877-777-4778. For more information about TAS and your rights under the Taxpayer Bill of Rights, go to taxpayeradvocate.irs.gov. Do not send your federal court pleading to the TAS address listed above. Use the applicable federal court address provided earlier in the letter. Contacting TAS does not extend the time to file an action for declaratory judgment.
Where you can find more information
Enclosed are Publication 1, Your Rights as a Taxpayer, and Publication 594, The IRS Collection Process, for more comprehensive information.
Find tax forms or publications by visiting www.irs.gov/forms or calling 800-TAX-FORM (800-829-3676).
If you have questions, you can call the person shown at the top of this letter.
If you prefer to write, use the address shown at the top of this letter. Include your telephone number, the best time to call, and a copy of this letter.
Keep the original letter for your records.
Enclosures:
Publication 1
Publication 594
Publication 892
_z:re~;. oi11{,, ,
Sean E. O'Reilly d
Director, Exempt Organizations Examinations
Letter 6337 (12-2020)
Catalog Number 74808E
&"..II Department of the Treasury fJ/1!11 Internal Revenue Service
IRS Tax Exempt and Government Entities
CERTIFIED MAIL - Return Receipt Requested Dear
Why you~re receiving this letter
Date:
April27,2021
Taxpayer ID number:
Form:
Tax penoas enoed:
P.-son to contact:
Name:
ID number:
Telephone:
Fax:
Address:
Manager'• contact 1mormatton:
Name:
ID number:
Telephone:
Response due date:
We enclosed a copy of our audit report, Form 886-A, Explanation ofitems, explaining that we propose to revoke your tax-exempt status as an organization described in Internal Revenue Code

(IRC) Section 50l(c)(3).
If you agree
If you haven't already, please sign the enclosed Form 6018, Consent to Proposed Action, and return it to the contact person shown at the top of this letter. We'll issue a final adverse letter determining that you aren't an organization described in IRC Section 50l(c)(3) for the periods above.
After we issue the final adverse detennination letter, we'll announce that your organization is no longer eligible to receive tax deductible contributions under IRC Section 170.
If you disagree
1. Request a meeting or telephone conference with the manager shown at the top of this letter.
2. Send any information you want us to consider.
3. File a protest with the IRS Appeals Office. If you request a meeting with the manager or send additional information as stated inland 2, above, you'll still be able to file a protest with IRS Appeals Office after the meeting or after we consider the information.
Letter3618(Rev.8-2019)
Catalog Number 34809F
The IRS Appeals Office is independent of the Exempt Organizations division and resolves most disputes informally. If you file a protest, the auditing agent may ask you to sign a consent to extend the period of limitations for assessing tax. This is to allow the IRS Appeals Office enough time to consider your case. For your protest to be valid, it must contain certain specific information, including a statement of the facts, applicable law, and arguments in support of your position. For specific information needed for a valid protest, refer to Publication 892, How to Appeal an IRS Determination on Tax-Exempt Status.
Fast Track Mediation (FTM) referred to in Publication 3498, The Examination Process, generally doesn't apply now that we've issued this letter.
4. Request technical advice from the Office of Associate Chief Counsel (Tax Exempt Government Entities) if you feel the issue hasn't been addressed in published precedent or has been treated inconsistently by the IRS.
If you're considering requesting technical advice, contact the person shown at the top of this letter. If you disagree with the technical advice decision, you will be able to appeal to the IRS Appeals Office, as explained above. A decision made in a technical advice memorandum, however, generally is final and binding on Appeals.
Ifwe don't hear from you
If you don't respond to this proposal within 30 calendar days from the date of this letter, we'll issue a final adverse determination letter.
Contacting the Taxpayer Advocate Office is a taxpayer right
The Taxpayer Advocate Service (TAS) is an independent organization within the IRS that can help protect your taxpayer rights. TAS can offer you help if your tax problem is causing a hardship, or you've tried but haven't been able to resolve your problem with the IRS. If you qualify for TAS assistance, which is always free, TAS will do everything possible to help you.
Visit www.taxpayeradvocate.irs.gov or call 877-777-4778.
For additional information
You can get any of the forms and publications mentioned in this letter by visiting our website at www.irs.gov/forms-pubs or by calling 800-TAX-FORM (800-829-3676).
2 Letter 3618 (Rev. 8-2019)
Catalog Number 34809F
If you have questions, you can contact the person shown at the top of this letter.
Sincerely,
Olgitally signed by Jason f..
Brasch
Date: 2021.G4.27 08:02:12
-07'00'
FOR Sean E. O'Reilly
Director, Exempt Orga111zations Enclosures:
Form886-A
Form4621-A
Form6018
Publication 892
Publication 3498
Examinations
3 Letter 3618 (Rev. 8-2019) catalog Number 34809F
Seim.lie runbef Of 1llffllbil
Form886-A
EXPLANATIONS OF ITEMS
Nameoftaxpaver Tax ldenlfflcaUon Number Year/Per!Od ended

# ISSUE

Whether exemption under Internal Revenue Code (IRC) 501(c)(3) should be revoked since it does not meet the operational test and was unable to produce books and records?
FACTS has not provided documentation or testimony for the audit. All of information reviewed and discussed below came from the Department of Justice ( ), the internet, public records, etc. incorporated with the Secretary of State on with the directors listed as , , and . The organization's articles of incorporation states that its purpose was to provide relief to poor, underprivileged children. articles specify that the means of providing such relief includes, but not limited to, receiving funds from the general community by soliciting support from individual contributors. filed a Statement of Information with the Secretary of State of reporting , , and were officers for on dissolved on On filed and received authority from became the registered agent for Secretary of State to operate in on filed Form on for Form , Part 11, states that the organization's purpose is to provide relief to and planned to by , , , and payment of expenses and fees for recreational activities. The funding for above activity would be from donations of automobiles, land, other motorized vehicles, electronic equipment, and household furnishings. would sell these items to the general public and the proceeds would be used to carry out the organization's purpose. planned to advertise its services in newspapers, radio, billboards, fliers, TV. and selective mailings and would use volunteers for tutoring, providing transportation and leadership for , ~iciting individuals and businesses for donations, and doing miscellaneous errands. received exemption under IRC 501(c)(3) as a public charity with an effective date of FORM The Form had a due date of . The statute is filed the Form on . No return has been filed for Form 886-A {1-1994) ca1a1og Number 20810W Page_L ptmish.no.irs.gov OeparlmeN of lhe Treasury.lntemal Revenue SeMce
Foon886-A
Nll!M nf lalmlM!r
1Kn81JU11ttumef0, exhiblt
EXPLANATIONS OF ITEMS
YearJPertod ended
Tax ldentillcalion Number reported the following income and expenses:
The Form ..1.
Contributions, Gifts, Grants, & Similar Amounts Expenses:
Salaries
Professional Fees
Occupancy
Printing
Other Expenses:
Advertising & Promotion
Information Technology
Insurance
DMV
Office Expense
Other Fees
Postage & Shipping
Towing
Travel
Total Expenses
Net Loss
$ l , states that the primary exempt purpose of Form , Schedule is to provide and organizations that help those with the things they need most. discusses its program service accomplishments and states,~ Also, on Schedule , were given away. focused on receiving donated "
ADVERTISING VEHJCl.ES advertises on operates a program them to working order and giving to , , and . Some of the ads on can be viewed at state the in and that money from the sale will be donated to non-profit transportation to providing , clothing and ads state,~ in need. Other states,~ "
Fonn 886-A (1-1994)
C8lalog Number 20810W
The ads on
Page--2_ pubisluto .. irS.gov Oepartmertofthe Treasury-Internal Revenue Service
SctleWlltrunber or uta
Form886-A
EXPLANATIONS OF ITEMS
Name of taxpayer Tax ldenllllcati0n Number Year/Period ended BANK ACCQUNT On became primary signer on and was removed as authorized signer on account. In some of the cancelled checks list as the Payor instead of A review of bank statements and deposited items shows that deposited checks from selling autos to and made cash deposits ranging from $ to $ in . The deposits per bank statements totaled $ in . The income reported on the return totaled $ . It's unknown what the difference is for, however, advertised and sold cars at and used the services of individuals who were not compensated by A review of cancelled checks showed that charities or did not make any contributions to ATTEMPTS TO CONTACT Sent letter 3611, Form 4564, and Publication 1 on as undeliverable. A postal tracer was sent to indicated that moved and left no forwarding address. . The letter was returned , and the post office On , the agent called the last known telephone number listed on for and left a message for to call me. The call was not returned. Letter 3611 was sent on to via regular and certified mail. The certified card was signed and returned on . The tracking information on Service website, shows that the letter was delivered on and left with an individual. was the deadline to respond to letter 3611. A response was not received from On , the agent talked to of stated does not have any documentation to verify income, expenses or contribution of vehicles to needy families The agent informed that exempt status will be revoked because it was not operating for an exempt purpose. orally agreed to the revocation.

# LAW

IRC Section 501(c)(3) exempts from taxation any corporation organized and operated exdusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition, or for the prevention of cruelty to children or animals, provided no part of the net earnings of which inures to the benefit of any private shareholder or individual.
Treasury Regulation Section 1.501(c)(3)-l(a)(I) provides that in order to be exempt as an organization described in IRC Section 501(c)(3), an organization must be both organized and Form886-A (1-1994} catalogNumber20810W Page_L publish.no.irs.gov ~of the Treasury-Internal Revenue Servk:e
- --- ---
Sdmlit nwnber or IIXhilllt
Form886-A
EXPLANATIONS OF ITEMS
Name of taxpayer Taxldenlilk:allonNumber Year/Period ended operated exclusively for one or more of the purposes specified in IRC Section 501(c)(3). If an organization fails to meet either the organizational or operational test, it is not exempt.
Treas. Reg. 1.501(c)(3)-1(c)(1) provides that an organization will be regarded as operated exclusively for one or more exempt purposes only if it engages primarily in activities which accomplish one or more of such exempt purposes specified in section 501 (c)(3). An organization will not be so regarded if more than an insubstantial part of its activities is not in furtherance of an exempt purpose.
IRC § 6001 provides that every person liable for any tax imposed by the IRC, or for the collection thereof, shall keep such records, render such statements, make such returns, and comply with such rules and regulations as the Secretary may from time to time prescribe.
Treas. Reg. 1.6001-1(a) states that any person subject to tax under subtitle A of the Code or any person required to file a return of information with respect to income, shall keep such permanent books of account or records, including inventories, as are sufficient to establish the amount of gross income, deductions, credits, or other matters required to be shown by such person in any return of such tax or information.
Treas. Reg. 6001-1(e) states that the books or records required by this section shall be kept at all times available for inspection by authorized internal revenue officers or employees, and shall be retained as long as the contents thereof may be material in the administration of any internal revenue law.
IRC 6033(a)(1) provides, except as provided in IRC § 6033(a)(2), every organization exempt from tax under section 501(a) shall file an annual return, stating specifically the items of gross income, receipts and disbursements, and such other information for the purposes of carrying out the internal revenue laws as the Secretary may by forms or regulations prescribe, and keep such records, render under oath such statements, make such other returns, and comply with such rules and regulations as the Secretary may from time to time prescribe.
Treas. Reg. 6033-1(h)(2) provides that every organization which has established its right to exemption from tax, whether or not it is required to file an annual return of information, shall submit such• additional information as may be required by the district director for the purpose of enabling him to inquire further into its exempt status and to administer the provisions of subchapter F (section 501 and the following), chapter 1 of the Code and IRC § 6033.
Section 1.6033-2(i)(2) of the Income Tax Regulations provides, in part, that every organization which is exempt from tax shall submit such additional information as may be required by the Internal Revenue Service for the purposes of inquiring into its exempt status.
Revenue Ruling 59-95, 1959-1 CB 627, provides that a failure to file required information return or comply with the provision of section 6033 of the Code and the regulations which implement it, may Fonn 886-A (1-1994) ca1a1og Number 20810W Page_L pmlish.no.irs.gov Oepartmemofthe T~
Revenue Service
--
---
--
-- --- --
SclNlllt !llfflber or lll!hlblt
Foon886-A
EXPLANATIONS OF ITEMS
Name of taxpayer Taxldenlllk:allon NUmber Year/Period ended result in the termination of the exempt status of an organization previously held exempt, on the grounds that the organization has not established that it is observing the conditions required for the continuation of an exempt status.
GOVERNMENT'S POSITION
In order to qualify for exemption under IRC 501(c)(3), an organization must be both organized and operated exclusively for one or more of the purposes specified in that section. If an organization fails to meet either the organizational test or the operational test, it is not exempt. Treas. Reg. § 1.501(c)(3)-1(a)(1). has shown it met the organizational test.
An organization will be regarded as operated exclusively for one or more exempt purposes only if it engages primarily in activities which accomplish one or more of such exempt purposes specified in section 501 (c)(3). An organization will not be so regarded if more than an insubstantial part of its activities is not in furtherance of an exempt purpose. exempt purpose was to provide relief to the poor, underprivileged, and or organizations by providing food, clothing, , and payment of fees and expenses for recreational activities or to provide to families in need. A review of cancelled checks and bank statements from showed that did not give funds to organizations. Also, has not shown it donated in need. did not provide any documentation to verify that it operated exclusively for exempt purposes under IRC 501(c)(3), therefore, it failed the operational test and is not exempt under IRC 501(c)(3).
IRC 6001 requires to keep records and file returns, Treas. Reg. 1.6001-1(a) requires to keep permanent books of accounts or records to establish income, deductions, credits, etc., Treas. Reg. 1.6001-1(e) requires to have books available for inspection by IRS employees, and Treas. Reg. 1.6033-1(h)(2) requires to submit information as requested for purposes of inquiring about its exempt status. We attempted to obtain these records numerous times by mail and telephone. failed to provide records as is required in these sections. In Rev. Rul.
59-95, an organization's failure or inability to file required information returns or otherwise to comply with the provisions of IRC 6033 and the regulations which implement it, may result in the termination of the organization's exempt status based on the grounds that the organization has not established that it is observing the conditions that are required for the continuation of its exempt status. has not complied with IRC 6001 or 6033 and the corresponding regulations, therefore, exempt status should be revoked as of TAXPAYER'S POSITION , CEO of , does not have any records to support income, expenses or contribution o to needy and orally agreed to the revocation.
Form 886-A (1-1994} catalog Number 20810W Page--5_ ptdstmo.ils_gov Department of the Treasu,y-tntemal Revenue Service
Form886-A
EXPLANATIONS OF ITEMS
Sclm.dlt number or nhillll
Name of taxpayer Tax ldentfflcatlon Number Year./Perlod ended

# CONCLUSION

By not complying with the Code and Regulations, the organization has jeopardized its exempt status. has failed to provide required documentation, thereby failing to be complaint with the Code, and failing to show any evidence of its exempt activities. We have no reason to believe that is operating for exempt purposes.
As a result of the examination, we have determined that is not operating for exempt purposes as a §501(c)(3) organization. They have not provided any information to the contrary.
Accordingly, since the organization failed to operate primarily for exempt purposes, we are proposing revocation of their tax-exempt status with an effective date of Since the organization will no longer have tax-exempt status beginning in , they are liable for filing Form Income Tax Return, as of that date.
Fmm 886-A (1-1994}
Catalog Number 20810W Page_§_ publish.no .. irs.gov Department of the Treasury-Internal Revenue Service