CCA 1125037: Database organization is not a representative of the news media for fee-waiver purposes

Plain-English summary

Chief Counsel advised that a fee-waiver request made under IRC § 6104 should be evaluated using FOIA practices and case law. On the facts presented, the organization was not a representative of the news media because its website appeared to be a database from which journalists and others could draw data, rather than a publication that used editorial skills to turn raw material into a distinct work. The advice states that § 6104 provides no administrative appeal procedure for this fee-waiver denial, but a requester may submit the same request under FOIA and pursue the FOIA appeal and judicial-remedy routes if that request is denied.

Ruling snapshot

• Question: How should a fee-waiver request under IRC § 6104 be evaluated, and what appeal route is available after denial?
• Outcome: Advice given.
• Key authorities: IRC § 6104; FOIA; Treas. Reg. § 601.702(c)(10).

Full text (IRS public release)

ID: CCA_2011060116065960 Number: 201125037
Release Date: 6/24/2011
Office: ----------------------------
UILC: 6104.00-00

From: ---------------------------
Sent: Wednesday, June 01, 2011 4:06:59 PM
To: -------------------------
Cc: ----------------------
Subject: Fee Waiver Denial Issue

Even though this fee waiver request is part of a request under section 6104 rather than
FOIA, we can only look to FOIA practices and case law to guide our treatment of this
request under section 6104.
While FOIA was recently amended to take into account the internet and emerging forms
of electronic media, there is still no case law on how specifically to treat bloggers, but
from what you have presented to us, we agree with your assessment that this
organization is not a representative of the news media. In particular, we agree with your
determination that since the website seems to be a database from which others,
including journalists, can pull data in order to write articles, instead of writing articles
themselves, the organization cannot be said to be using its “editorial skills to turn the
[requested] raw material into a district work,” as it is required under the FOIA to be
classified as a representative of the news media. As new FOIA cases address the
issue of whether and under what circumstances bloggers can be considered
representatives of the news media, we may revisit the issue and will keep you apprised
of our views on the matter.
As for the administrative appeal process, there is no appeal procedure under section
6104 for the denial of a fee waiver request in connection with a request for a tax exempt
organization’s information returns. However, if a requester disagrees with a fee waiver
denial, that requester may file a FOIA request containing the same fee waiver request.
If the FOIA request is denied, the requester will have the option of administratively
appealing the denial under FOIA, as set forth in Treas. Reg. § 601.702(c)(10) and will
be able to pursue judicial remedies as well.
Please let us know if we can offer additional assistance.
Thanks,