Exemption denial became final after no protest

Plain-English summary

An organization applied for recognition as tax-exempt under section 501(c)(3). The IRS had sent a proposed adverse determination explaining the facts, law, and basis for denial, but the organization did not protest within 30 days. The IRS therefore made the denial final. The released document states that donors generally cannot deduct contributions to the organization under section 170 and that the organization must file required federal income tax forms. The two-page public release does not include the proposed letter's factual explanation for why the organization failed the exemption requirements.

Ruling snapshot

• Question: Did the organization qualify for recognition under section 501(c)(3)?
• Outcome: Denied, after no timely protest of the proposed adverse determination
• Key authorities: IRC §§ 170, 501(a), 501(c)(3), 6104(c), 6110

Full text (IRS public release)

Department of the Treasury Date:
Internal Revenue Service 07/10/2024
Tax Exempt and Government Entities Employer ID number:

IRS

Person to contact:

Release Number: 202440012
Release Date: 10/04/2024
UIL Code: 501.33-00, 501.35-00

Dear

This letter is our 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 501(c)(3). Recently, we sent you a proposed adverse determination in response to your application. The proposed adverse determination explained the facts, law, and basis for our conclusion, and it gave you 30 days to file a protest. Because we didn't receive a protest within the required 30 days, the proposed determination is now final.

Because you don't qualify as a tax-exempt organization under IRC Section 501(c)(3), donors generally can't deduct contributions to you under IRC Section 170.

We may notify the appropriate state officials of our determination, as required by IRC Section 6104(c), by sending them a copy of this final letter along with the proposed determination letter.

You must file the federal income tax forms for the tax years shown above within 30 days from the date of this letter unless you request an extension of time to file. For further instructions, forms, and information, visit

www.irs.gov.

We'll make this final adverse determination letter and the proposed adverse determination letter available for public inspection after deleting certain identifying information, as required by IRC Section 6110. Read the enclosed Letter 437, Notice of Intention to Disclose - Rulings, and review the two attached letters that show our proposed deletions. If you disagree with our proposed deletions, follow the instructions in the Letter 437 on how to notify us. If you agree with our deletions, you don’t need to take any further action.

If you have questions about this letter, you can call the contact person shown above. If you have questions about your federal income tax status and responsibilities, call our customer service number at 800-829-1040 (TTY 800-829-4933 for deaf or hard of hearing) or customer service for businesses at 800-829-4933.

Letter 4038 (Rev. 11-2021)
Catalog Number 47632S

Sincerely,

Stephen A. Martin
Director, Exempt Organizations
Rulings and Agreements

Enclosures:

Letter 437

Redacted Letter 4034
Letter 4038

Letter 4038 (Rev. 11-2021)
Catalog Number 47632S