Religious, Charitable, etc., Institutions and Community Chest

Date:
Department of the Treasury
Internal Revenue Service
IRS Tax ExemDt and Government Entitles March 1 , 2022
Taxpayer ID nurr1ber:
Release Number: 202247011
Release Date: 11/25/2022
UIL Code: 501.03-00
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
Why we are sending you this letter
Form:
Tax periods encktd:
Person to c<,nta<:t:
Name:
ID number:
Telephon,e:
Fax:
This is a final 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 50l(c)(3). effective . Y om determination letter dated , is revoked.
Our adverse determination as to yom exempt status was made for the following reasons: Organizations described in IRC Section 50l(c)(3) and exempt wder IRC Section 501(a) must be both organized and operated exclusively for exempt purposes. You have failed to demonstrate that you are operated exclusively for charitable, educational, or other exempt purposes within the meaning ofIRC Section 50I(c)(3).
Organizations that are not exempt wder IRC Section 50 I generally are required to tifo federal income tax returns and pay tax, where applicable. For further instructions, forms and information please visit www.irs.gov.
Contributions to your organization are no longer deductible wder 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 me your action for declaratory judgment
If you decide to contest this determination, you may file an action for declaratory judgment under the provisions ofIRC Section 7428 in one of the following three venues: 1) United States Tax Court, 2) tllie United States Court of Federal Claims or 3) the United States District Court for the District of Columbia.
Please contact the clerk of the appropriate court for rules and the appropriate forms for filing an action for declaratory judgment by referring to the enclosed Publication 892, How to Appeal au IRS Determination on Tax-Exempt Status. You may write to the com1s at the following addresses:
United States Tax Court U.S. Court of Federal Claims U.S. District Comt for the District of Columbia 400 Second Street, NW 717 Madison Place, NW 333 Constitution Ave .. N.W.
Washington, OC 20217 Washington, OC 20439 Washington, OC 20001 Processing of income tax returns and assessments of any taxes due will not be delayt!d. if you file a petition for declaratocy judgment wider IRC Section 7428.
Letter 8337 (12-2020)
Catalog Nt.mber 7 4808E
We'll notify the appropriate state officials (as permitted by law) of our determination that you aren't an organization described in IRC Section 50l{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 (TAS) 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:
Or call TAS at 877-777-4 778. For more information about T AS 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 T AS 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
/iincefl~
!kA.B~
~~g Director, Exempt Organizations Examinations
Letter 6337 (12-2020)
Catalog Number 74808E
IRS
Department of the Treasury
Internal Revenue Service
Tax Exempt and Government Entities CERTIFIED MAIL - Return Receipt Requested
Why you're receiving this letter
Date:
October 1, 2021
Taxpayer ID number:
Form:
Tax periods 1:1nded:
Person to contact:
Name:
ID number:
Telephone,
Fax:
Address:
Manager's cc>ntac:t information:
Name:
ID number:
Telephone
Response due d;1te:
November 1, 2021
We enclosed a copy of our audit report, Form 886-A, Explanation ofltems, explaining that we propose to revoke your tax-exempt status as an organization described in Internal Revenue Code (IRC) Section 501(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 detem1ining that you aren't an organization described in IRC Section 501(c)(3) for the periods above.
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 in 1 and 2, above, you'll still be able to file a protest with IRS Appeals Office after the meeting or after we consider the information.
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 infom1ation 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 Proc:ess, generally doesn't apply now that we've issued this letter.
Letter 3618 (Rev. 8-2019)
Catalog Number 34809F
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 (T AS) 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.taxpayeradvocate.irs.gov or call 877-777-4778.
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).
If you have questions, you can contact the person shown at the top of this letter.
Sincerelv.
For Sean E. O'Reilly
Director, Exempt Organizations Examinations Enclosures:
Form 886-A
Form 6018
Pub 892
&3498
Letter 3618 (Rev. 8-2019)
Catalog Number 34809F
Form 886A
Name of Taxpayer

# ISSUE

Departtncnt of the Treasury - Internal Revenue Service E lanation of Items Schedule No. or Exhibit
Year/Period Ended
Whether continues to qualify for exemption under Section 501 (c)(3) of the Internal Revenue Code.
FACTS: of was incorporated under the laws of the State as a non-profit corporation on was granted exempt status undeir section 501 (c)(3) of the Internal Revenue Code as an organization described under section 509(a)( 1) and 170(b )(1 )(A)(vi).
A review of the organization's returns for tax year ended through revealed that there were no revenues and expenses reported on the returns. Per the filed returns, the organization's purpose is"
In an Information Document Request (IDR) dated , the organization was asked whether it was operating and to provide a detailed description of its activities, minutes of meetings, and bank statements to substantiate that it is operating within the scope of section 501 (c)(3) of the Internal R:evenue Code.
During the initial phone call on with , Director, revealed that the organization is inactive and has not been able to secure funding for the organization since its inception. The organization does not maintain any books or records due to its inactivity.

# 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)
Form 886-A(Rcv.4-68)
Department of the Treasury - Internal Revenue Service Page: -1-Form 886A Department of the Treasury - Internal Revenue Service Schedule No. or Exhibit E lanation of Items Name of Taxpayer Year/Period Ended 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.
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).
TAXPAYER'S POSITION:
The taxpayer agrees with the governments recommendation to revoke the organization's exempt status due to its inactive status.
GOVERNMENT'S POSITION:
The organization does not meet the operational test of section 501(c)(3) for the year under examination. To meet the operational test, the organization must show that they engage primarily in activities which accomplish one or more of the exempt purposes specified in section 501 (c)(3).
The organization is not operating for the exempt purposes as set forth in IRC 501(c)(3) due to a lack of funding.

# CONCLUSION

It is the position of the Internal Revenue Service that the organization failed to demonstrate it continues to operate exclusively for IRC 501(c)(3) purposes.
Accordingly, we are proposing that the organization's exempt status be revoked effective Form 886-A(Rev.4-68) Department of the Treasury - Internal Revenue Service
Page: -2-