Religious, Charitable, etc., Institutions and Community Chest

Department of the Treasury
Internal Revenue Service
Tax Exempt and Government Entities
IRS Exemot Organizations Examinations Release Number: 202321008 Release Date: 5/12/2023 UIL Code: 501.03-00
CERTIFIED MAIL - Return Receipt Requested Dear
Why we are sending you this letter
Date: March 3, 2023
Taxpayer ID number (last 4 digits):
Form:
Tax periods ended:
Person to contact:
Name:
ID number:
Telephone:
Fax:
Last day to file petition with United States
Tax Court:
This is a final determination that you don't qualify for exemption from federal income tax under Internal Revenue Code (IRC) Section 50l(a) as an organization described in IRC Section 50l(c)(3), effective . Your determination letter dated , is revoked.
Our adverse determination as to your exempt status was made for the following reasons: You have not demonstrated that you are both organized and operated exclusively for charitable, educational, or other exempt purposes within the meaning ofIRC Section 501(c)(3). Your primary activities are social in nature, allowing individuals to join together to provide themselves recreation on a mutual basis. As such, you failed to meet the operational requirements oflRC Section 50l(c)(3) and Treasury Regulations Section l.50l(c)(3)-l(a).
Organizations that are not exempt under IRC Section 501 generally are required to file federal income tax returns and pay tax, where applicable. For further instructions, forms and information please visit IRS.gov.
Contributions to your organization are no longer deductible under IRC Section 170.
What you must do if you disagree with this determination
If you want to contest our final determination, you have 90 days from the date this determination letter was mailed to you to file a petition or complaint in one of the three federal courts listed below.
How to file your action for declaratory judgment
If you decide to contest this determination, you can file an action for declaratory judgment under the provisions of Section 7428 of the Code in either:
• The United States Tax Court,
• The United States Court of Federal Claims, or
• The United States District Court for the District of Columbia You must file a petition or complaint in one of these three courts within 90 days from the date we mailed this determination letter to you. You can download a fillable petition or complaint form and get information about filing at each respective court's website listed below or by contacting the Office of the Clerk of the Court at one of the addresses below. Be sure to include a copy of this letter and any attachments and the applicable filing fee with the petition or complaint.
You can eFile your completed U.S. Tax Court petition by following the instructions and user guides available on the Tax Court website at ustaxcourt.gov/dawson.html. You will need to register for a DAWSON account to do so. You may also file your petition at the address below:
United States Tax Court
400 Second Street, NW
Washington, DC 20217 ustaxcourt.gov The websites of the U.S. Court of Federal Claims and the U.S. District Court for the District of Columbia contain instructions about how to file your completed complaint electronically. You may also file your complaint at one of the addresses below:
US Court of Federal Claims
717 Madison Place, NW
Washington, DC 20439 uscfc.uscourts.gov
US District Court for the District of Columbia
333 Constitution A venue, NW Washington, DC 20001 dcd. uscourts.gov Processing of income tax returns and assessments of any taxes due will not be delayed if you file a petition for declaratory judgment under IRC Section 7428.
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. TAS is an independent organization within the IRS that helps taxpayers and protects taxpayer rights. Contact your local Taxpayer Advocate Office at:
Internal Revenue Service
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 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.
You may fax your documents to the fax number shown above, using either a fax machine or online fax service.
Protect yourself when sending digital data by understanding the fax service's privacy and security policies.
Keep the original letter for your records.
Enclosures:
This letter
Publication 1
Publication 594
Publication 892
Sincerely,
~~~
1
A. Brinkley
\~
Director, Exempt Organizations Examinations m
IRS
Department of the Treasury
Internal Revenue Service
Tax Exempt and Government Entities
CERTIFIED MAIL - Return Receipt Requested Dear
Why you're receiving this Jetter
Date:
June 7, 2022
Taxpayer ID number:
Form:
Tax periods ended:
Person to contact:
Name:
ID number:
Telephone:
Fax:
Address:
Manager's contact information:
Name:
ID number:
Telephone:
Response due date:
July 7, 2022
We enclosed a copy of our audit report, Form 886-A. Explanation of Items. explaining that we propose to revoke your tax-exempt status as an organization described in Intemal Revenue Code

(IRC) Section 50 I ( 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 TRC Section 501 ( c )(3) for the periods above.
Aller we issue the final adverse determination 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 infonnation you want us to consider.
3. File a protest with the IRS Appeals Ofiice. If you request a meeting with the manager or send additional information as stated in 1 and 2, above, you·11 still be able to file a protest with IRS Appeals Oflice alter the meeting or after we consider the information.
Letter3618 (Rev. 8-2019)
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 JRS 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 suppo1t of your position. For specific information needed for a valid protest, refer to Publication 892, How to Appeal an IRS Detem1ination 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.
If we don't hear from you
If you don't respond to this proposal within 30 calendar days from the date of this letter, we' II 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. T AS 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.taxpaveradvocate.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-TA,X-FORM (800-829-3676).
2 Letter 3618 (Rev. 8-2019)
If you have questions, you can contact the person shown at the top of this letter.
Enclosures:
Form 886-A
Form 6018
Pub 892
Pub 3498
S:incet'eiy,
Digital!)' sig',ed by Eli N.
Eli N. Munoz~noo.01 u:SS:50 --05'-00' for Lynn A. Brink:ley Acting Director, Exempt Organizations Ex:amirmti.ons 3 Form 886-A (May 2017) Name of taxpayer

# ISSUE

Department of the Treasury - Internal Revenue Service
Explanation of Items
I
Tax Identification Number (last 4 digits) Schedule number or exhibit Year/Period ended Whether . operates exclusively for educational purposes?
Whether the tax-exempt status of . should be revoked, because it does not meet the operational requirements for exemption under Section 501 (c)(3) of the Internal Revenue Code?
FACTS: . was incorporated under the laws of the as a non-profit corporation on , for the purpose of the following:
Articles of Incorporation
Article Ill Purpose
The purpose for which the corporation is organized is: The Club is to operate as a non-profit group.
Constitution (Updated )
Article I - Name and Objectives Section 2. The objectives of the Club shall be:
• To do all possible to bring the natural qualities of
• To urge members to accept the standard of as the only standard
• To do all in its power to protect and advance the interests
• To conduct under the rules
• To educate regarding specific care requirements
Form 886-A{Rev.4-68)
Department of the Treasuty - Internal Revenue Service Form 886-A (May 2017) Name of taxpayer Department of the Treasury - Internal Revenue Service
Explanation of Items
I
Tax Identification Number (last 4 digits)
• To provide education on a community basis
• Educate regarding care
Schedule number or exhibit
Year/Period ended
On , . was recognized to be exempt from federal income tax as an organization described in IRC Section 501 (c)(3).
During telephone discussion on history of the organization. , the organization's representative stated It appears . initially filed a Form 1023-EZ to be recognized as an exempt organization under 501 (c)(3) on . was recognized by the Service as a 501 (c)(3) on . A Form 1024 signed on , and postmarked , to be recognized as an exempt organization under 501 (a) was received by the Service from . on . There were no other records (i.e. Final Determination Letter) regarding the filing of the Form 1024.

# LAW

IRC § 501 (c)(3) exempts from federal income tax organizations which are organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation (except as otherwise provided in subsection (h)), and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office.
Tax Reg.§ 1.501 (c)(3)-1 (d)(i) states that an organization may be exempt as an organization described in 501 (c)(3) if it is organized and operated exclusively for one or more of the following purposes: religious, charitable, scientific, testing for public safety, literary, educational, or prevention of cruelty to children or animals.
Tax Reg. § 1.501 (c)(3)-1 (a)(1) of the regulations provides that in order to be exempt as an organization described in section 501 (c)(3) of the Code, the organization must be one that is both organized and operated exclusively for one or more of the purposes specified in that section.
Form 886-A<Rev.4-68) Department of the Treaswy - Internal Revenue Service Form 886-A {May 2017) Name of taxpayer Department of the Treasury - Internal Revenue Service
Explanation of Items
I
Tax Identification Number (last 4 digits) Schedule number or exhibit Year/Period ended Tax Reg. § 1.501 (c)(3)-1 (c)(1) of the regulations 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) Revenue Ruling 58-617, 1958-2 CB 260, (Jan. 01, 1958) Rulings and determinations letters granting exemption from federal income tax to an organization described in section 501 (a) of the Internal Revenue Code of 1954, to which contributions are deductible by donors in computing their taxable income in the manner and to the extent provided by section 170 of the Code, are effective only so long as there are no material changes in the character of the organization, the purposes for which it was organized, or its methods of operation. Failure to comply with this requirement may result in serious consequences to the organization for the reason that the ruling or determination letter holding the organization exempt may be revoked retroactively to the date of the changes affecting its exempt status, depending upon the circumstances involved, and subject to the limitations on retroactivity of revocation found in section 503 of the Code.
TAXPAYER'S POSITION:
Unknown
GOVERNMENT'S POSITION AND CONCLUSION:
As demonstrated in Rev. Rul. 58-617, an organization's exempt status will remain in effect only so long as there are no material changes in the character of the organization, the purposes for which it was organized, or its methods of operation. In the case of . the organization has been conducting activities that are not in accordance with the exempt purposes specified in section 501 (c)(3). As such, . fails to meet the operational requirements to continue its exemption status under IRC 501 (c)(3). Therefore, the effective revocation date will be . would need to file a Form 1024 in order to be recognized as an exempt organization under 501 (a).
If you agree to this conclusion, please sign the attached Forms.
If you disagree, please submit a statement of your position.
Form 886-A{Rev.4-68)
Department of the Treasury - Internal Revenue Service