Ezel / IRS Rulings / 200906044

CCA 200906044: Retroactive foundation-status changes depended on when the defect arose

Number
200906044
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Supporting Organizations
Topics
Other topics
Code sections
§ none cited
Ruling dated
July 23, 2008
Publicly released
February 6, 2009
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2009, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2009
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel briefly reviewed a report that proposed a retroactive modification to the organization's foundation status but contained little supporting analysis. The modification should reach the organization's inception if its exemption application contained a material misstatement or omission. If the organization's operations instead materially changed from what the application represented, the modification should begin on the date of that change. The released email does not disclose the underlying organization or proposed status change in greater detail.

Ruling snapshot

  • Question: From what date should a modification to the organization's foundation status apply?
  • Outcome: Advice given: use the inception date for a material application defect, or the operational-change date if the organization's activities later departed materially from its application.
  • Key authorities: No specific authority cited.

Full text (IRS public release)

ID: CCA-723155-08 Number: 200906044
Release Date: 2/6/2009
Office: -----------------------------
UILC: 9300.99-04

From: ---------------------------
Sent: Wednesday, July 23, 2008 3:52 PM
To: -------------------
Cc: -----------------------------
Subject: RE: Case---- ----------

-------- I took a quick look at the RAR. It contains the following language:
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------- retroactive modification to PF status but there is little analysis to support it. It should be back to date of inception if there was a material mistatement or omission on the application for exemption or to date the organizations operations materially changed from that represented in application. Will discuss if you want.
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------
-------------------

What does the Code say today, for your facts?

This advice was written for IRS staff and cannot be cited. Ezel checks the current Internal Revenue Code and IRS guidance against your situation, with citations.

Opens in Ezel Pro.

  • Checks the law as it stands today, not only this page
  • Cites every source it relies on, so you can verify it
  • Chat, drafting and research in one workspace