Determination 200552016: Tax exemption revoked after organization failed to provide records

Plain-English summary

The IRS issued a final determination revoking an organization's § 501(c)(3) exemption retroactively to a redacted date. It said the organization failed to provide documents or other information showing that it operated exclusively for exempt purposes, avoided private benefit, and did not allow its earnings to benefit private individuals. The letter says contributions to the organization are no longer deductible under § 170 and directs it to file corporate income tax returns for all open years. It also explains the 90-day deadline to seek judicial review. The released letter does not describe the organization's activities, so the underlying facts cannot be determined from it.

Ruling snapshot

• Question: Did the organization establish that it continued to qualify for exemption under § 501(c)(3)?
• Outcome: Revocation, retroactive to a redacted date.
• Key authorities: IRC §§ 501(c)(3), 170.

Full text (IRS public release)

Number: 200552016
Release Date: 12/30/05

Date: October 7, 2005

UIL: 501.03-01, 501.03-20
Taxpayer Identification Number:
NUM
Form: 990
LEGEND: Tax Year(s) Ended:

O = Name of Organization
A = Address of Organization
NUM = Employer ID Num.
Date = Effective Date

O
A
Person to Contact / ID Number:
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Contact Numbers:
Telephone:
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CERTIFIED MAIL

Dear -----

This is a final determination regarding your exempt status under section 501(c)(3) of the Internal Revenue Code (Code). Because you have not established that you are observing the conditions required to continue exempt status, recognition of your exemption from Federal income tax as an organization described in Internal Revenue Code section 501(c)(3) is retroactively revoked to DATE. Our determination was made for the reason that you have failed to produce documents, records, or other information to establish that you are operated exclusively for one or more exempt purposes set forth in section 501(c)(3), or that you were not operated for the benefit of private interests, or that a part of your net earnings did not inure to the benefit of private individuals.

Contributions made to your organization are not deductible under section 170 of the Code. Furthermore, you are required to file Federal income tax returns on Form 1120 for all open years. If you decide to contest this determination in court, a petition for declaratory judgment proceeding in the United States Tax Court, the United States Court of Claims, or the United States District Court for the District of Columbia must be filed within 90 days from the date this determination was mailed to you. The enclosed Publication 892 provides information about filing suit in these courts.

If you have any questions, please contact 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

Enclosure:
Publication 892