Homeowners Association

IRS
Legend:
T = Date
U = State
Department of the Treasury
Internal Revenue Service
PO Box2508
Cincinnati, OH 45201
X =Number
Date: 11/08/2023
Employer ID number:
Person to contact:
Name:
ID number:
Telephone:
Fax:
UIL:
501.04-00
501.04-06
501.04-07
Y =Number
Dear
We considered your application for recognition of exemption from federal income tax under Internal Revenue Code (IRC) Section 50l(a) . We determined that you don't qualify for exemption under IRC Section 50l(c)(4).
This letter explains the reasons for our conclusion. Please keep it for your records.

# Issue

Do you qualify for exemption under IRC Section 501(c)(4) as an organization operating as a homeowners' association? No, for the reasons stated below.

# Facts

You were formed on T, by incorporating in the state of U as a mutual benefit corporation with a stated purpose to operate a road association. You own approximately X feet of a roadway that serves Y lots ( one is currently vacant) in a residential subdivision. The lot owners are the sole members of your association. The roadway is the sole manner of ingress and egress by members from their residential properties to a public roadway. You have erected signage on a street pole that identifies the name of the roadway and the fact that the roadway is private property. You are responsible for maintenance of the roadway and the plowing of snow. These expenditures approximate % of your total annual planned expenditures. The only common area you maintain for public access and use is a small plot of property where the road splits. You are exclusively funded by dues assessed to the members of the association who are the sole property owners being served by the roadway.

# Law

IRC Section 501(c)(4) of the Internal Revenue Code provides that civic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare, or local associations of employees, the membership of which is limited to the employees of a designated person or persons in a particular municipality, and the net earnings of which are devoted exclusively to charitable, educational, or recreational purposes and no part of the net earnings of such entity inures to the benefit of any private shareholder or individual may be
Letter4034 (Rev. 01-2021)
Catalog Number 4 7628K