Determination 200540012: Veterans organization exemption revoked over membership requirements

Plain-English summary

The IRS issued a final determination revoking an organization's exemption under section 501(c)(19), retroactive to a redacted date. The agency said the organization had not established that it met the membership requirements for continued exemption. It had sent a report proposing revocation and given the organization 30 days to respond. Because no response arrived, the IRS proceeded on the report's recommendation. The released letter does not describe the specific membership shortfall.

Ruling snapshot

• Question: Had the organization shown that it met the membership rules for continued section 501(c)(19) exemption?
• Outcome: Revocation, retroactive to the redacted date.
• Key authorities: IRC § 501(c)(19).

Full text (IRS public release)

DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE

TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION

Number: 200540012
Release Date: 10/7/05
UIL: 501.19-00

Date: 6/2/05 Taxpayer Identification Number:
NUMBER
LEGEND: Form: 990
A= Organization
Tax Year(s) Ended:
Date1= Effective Date
Date2
Date2= Tax Year Ended
Person to Contact/ID Number:
NUMBER = EIN
-----------------------------
CERTIFIED MAIL
Contact Numbers:
Telephone: -------------------
Fax: -------------------

Dear ------------------:

This is a final determination regarding your exempt status under section 501(c)(19) of the Internal Revenue Code (IRC). Recognition of your exemption from Federal income tax as an organization described in Internal Revenue Code section 501(c)(19) is retroactively revoked to Date1 because it has been determined that you have not established that you are observing the membership provisions required for the continuation of your exempt status.

We previously mailed you a report explaining the proposed revocation of your tax-exempt status. In that correspondence, a copy of which is enclosed, we requested that you respond to the report within 30 days from the date of the letter accompanying the report.

Because we did not hear from you within that 30 day period, we will process your case on the basis of the recommendations shown in the report.

You have the right to contact the office of the Taxpayer Advocate. Taxpayer Advocate assistance is not a substitute for established IRS procedures, such as the formal appeals process. The Taxpayer Advocate cannot reverse a legally correct tax determination, or extend the time fixed by law that you have to file a petition in a United States court. The Taxpayer Advocate can, however, see that a tax matter that may not have been resolved through normal channels gets prompt and proper handling. You may call toll-free, 1-877- 777-4778, and ask for Taxpayer Advocate Assistance. If you prefer, you may contact your local Taxpayer Advocate at:

2

Taxpayer Advocate

If you have any questions, please call the contact person at the telephone number shown in the heading of this letter.

Thank you for your cooperation.

Sincerely,

R. C. Johnson
Director, EO Examinations