Unresponsive supporting organization lost exemption for failing to provide records

Plain-English summary

A functionally integrated Type III supporting organization did not respond to repeated IRS requests for records needed to verify its continued qualification under IRC § 501(c)(3). The IRS mailed the examination request to multiple addresses and made several telephone attempts. A representative of the supported organization said he could not locate any of the taxpayer’s officers, that the taxpayer had never been operational, and that at least one board member had died. The state also revoked the organization for failing to file an annual report, and the organization had stopped filing Form 990. Because it did not provide books, records, testimony, or any position demonstrating continued exempt operations, the IRS revoked its exemption effective on a redacted date. Contributions are no longer deductible.

Ruling snapshot

• Question: Did the organization substantiate its continued qualification for section 501(c)(3) status?
• Outcome: Revocation for failure to provide required records and information
• Key authorities: IRC §§ 501(c)(3), 6001, 6033; Treas. Reg. §§ 1.6001-1, 1.6033-2; Rev. Rul. 59-95

Full text (IRS public release)

~ Internal Revenue Service
Department of the Treasury Date:
fii
IRS Tax Exempt and Government Entities 10/22/2024
Taxpayer ID number (last 4 digits):

                                                                          Form:

    Release Number: 202509015
                                                                          Tax periods ended:
    Release Date: 2/28/2025
    UIL Code: 501.03-00                                                   Person to contact:
                                                                           Name:
                                                                           ID number:
                                                                           Telephone:
                                                                           Fax:
                                                                          Last day to file petition with United States
                                                                          Tax Court:
                                                                           01/20/2025

CERTIFIED MAIL -Return Receipt Requested
Dear:
Why we are sending you this letter
This is a 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), effective
. Your determination letter dated , is revoked.
Our adverse determination as to your exempt status was made for the following reasons: You have failed to
demonstrate that you are operated exclusively for one or more of the purposes described in IRC section 501 (c)
(3) or that no part of your net earnings inured to the benefit of any private shareholder or individual. You did
not produce documents, records, or other information to demonstrate that you are observing the conditions
required for the continuation ofIRC section 501 (c)(3) exempt status. You did not respond to reasonable
requests for records and information or otherwise provide the necessary records and information to demonstrate
that you are a tax-exempt organization described in IRC section 501(c)(3).
Organizations that are not exempt under IRC Section 501 generally are required to file federal income tax returns
and pay tax, where applicable. For further instructions, forms and information please visit IRS.gov.
Contributions to your organization are no longer deductible under IRC Section 170.
What you must do if you disagree with this determination
If you want to contest our final determination, you have 90 days from the date this determination letter was
mailed to you to file a petition or complaint in one of the three federal courts listed below.
How to file your action for declaratory judgment
If you decide to contest this determination, you can file an action for declaratory judgment under the provisions
of Section 7428 of the Code in either:
• The United States Tax Court,
• The United States Court of Federal Claims, or
• The United States District Court for the District of Columbia

                                                                                         Letter 6337 (Rev. 3-2024)
                                                                                         Catalog Number 74808E

You must file a petition or complaint in one of these three courts within 90 days from the date we mailed this
determination letter to you. You can download a fillable petition or complaint form and get information about
filing at each respective court's website listed below or by contacting the Office of the Clerk of the Court at one
of the addresses below. Be sure to include a copy of this letter and any attachments and the applicable filing fee
with the petition or complaint.
You can eFile your completed U.S. Tax Court petition by following the instructions and user guides available
on the Tax Court website at ustaxcourt.gov/dawson.html. You will need to register for a DAWSON account to
do so. You may also file your petition at the address below:
United States Tax Court
400 Second Street, NW
Washington, DC 20217
ustaxcourt.gov
The websites of the U.S. Court of Federal Claims and the U.S. District Court for the District of Columbia contain
instructions about how to file your completed complaint electronically. You may also file your complaint at one of
the addresses below:
US Court of Federal Claims
717 Madison Place, NW
Washington, DC 20439
uscfc. us courts.gov
US District Court for the District of Columbia
333 Constitution Avenue, NW
Washington, DC 20001
dcd.uscourts.gov
Processing of income tax returns and assessments of any taxes due will not be delayed if you file a petition for
declaratory judgment under IRC Section 7428.
We'll notify the appropriate state officials (as permitted by law) of our determination that you aren't an
organization described in IRC Section 501(c)(3).
The IRS office whose phone number appears at the top of the notice can best address and access your tax
information and help get you answers. However, you may be eligible for free help from the Taxpayer Advocate
Service (TAS) if you can't resolve your tax problem with the IRS or if you believe an IRS procedure just isn't
working as it should. TAS is an independent organization within the IRS that helps taxpayers and protects
taxpayer rights. Visit TaxpayerAdvocate.IRS.gov/contact-us or call 877-777-4778 (TTY/TDD 800-829-4059)
to find the location and phone number of your local advocate. Learn more about TAS and your rights under the
Taxpayer Bill of Rights at TaxpayerAdvocate.IRS.gov. Do not send your Tax Court petition to TAS. Use the
Tax Court address provided earlier in the letter. Contacting TAS does not extend the time to file a petition.
Where you can find more information
Enclosed are Publication 1, Your Rights as a Taxpayer, and Publication 594, The IRS Collection Process, for
more comprehensive information.
Find tax forms or publications by visiting IRS.gov/forms or calling 800-TAX-FORM (800-829-3676). If you
have questions, you can call the person shown at the top of this letter.
If you prefer to write, use the address shown at the top of this letter. Include your telephone number, the best
time to call, and a copy of this letter.

                                                                                       Letter 6337 (Rev. 3-2024)
                                                                                       Catalog Number 74808E

You may fax your documents to the fax number shown above, using either a fax machine or online fax service.
Protect yourself when sending digital data by understanding the fax service's privacy and security policies.
Keep the original letter for your records.
Sincerely,

                                                  Lynn A. Brinkley
                                                  Director, Exempt Organizations Examinations

Enclosures:
Publication 1
Publication 594
Publication 892

                                                                                  Letter 6337 (Rev. 3-2024)
                                                                                 Catalog Number 74808E

~ Internal Revenue Service
Department of the Treasury Date:
fdJ 07/05/2024
Tax Exempt and Government Entities
IRS Exempt Organizations Examinations
Taxpayer ID number:

                                                                            Form:
                                                                             990
                                                                            Tax periods ended:


                                                                            Person to contact:
                                                                             Name:
                                                                             ID number:
                                                                            Telephone:

                                                                            Address:
                                                                            Manager's contact information:
                                                                            Name:
                                                                            ID number:

CERTIFIED MAIL - Return Receipt Requested Telephone:
Response due date:
08/04/2024
Dear
Why you 're receiving this letter

If you agree
If you haven't already, please sign the enclosed Fom1 6018, Consent to Proposed Action, and return it to the
contact person shown at the top of this letter. We'll issue a final adverse letter determining that you aren't an
organization described in IRC Section 501(c)(3) for the periods above.
If you disagree
1. Request a meeting or telephone conference with the manager shown at the top of this letter.

2. Send any information you want us to consider.
3. File a protest with the IRS Appeals Office. If you request a meeting with the manager or send additional
   information as stated in 1 and 2, above, you'll still be able to file a protest with IRS Appeals Office after
   the meeting or after we consider the information.
   The IRS Appeals Office is independent of the Exempt Organizations division and resolves most disputes
   informally. If you file a protest, the auditing agent may ask you to sign a consent to extend the period of
   limitations for assessing tax. This is to allow the IRS Appeals Office enough time to consider your case.
   For your protest to be valid, it must contain certain specific information, including a statement of the
   facts, applicable law, and arguments in support of your position. For specific information needed for a
   valid protest, refer to Publication 892, How to Appeal an IRS Determination on Tax-Exempt Status.
   Fast Track Mediation (FTM) referred to in Publication 3498, The Examination Process, generally doesn't
   apply now that we've issued this letter.
4. Request technical advice from the Office of Associate Chief Counsel (Tax Exempt Government Entities)
   if you feel the issue hasn't been addressed in published precedent or has been treated inconsistently by the
   IRS.

                                                                                        Letter 3618 (Rev. 3-2024)
                                                                                        Catalog Number 34809F
   

   If you're considering requesting technical advice, contact the person shown at the top of this letter. If you
   disagree with the technical advice decision, you will be able to appeal to the IRS Appeals Office, as
   explained above. A decision made in a technical advice memorandum, however, generally is final and
   binding on Appeals.
   If we don't hear from you
   If you don't respond to this proposal within 30 calendar days from the date of this letter, we'll issue a final
   adverse determination letter.
   Contacting the Taxpayer Advocate Office is a taxpayer right
   The Taxpayer Advocate Service (TAS) is an independent organization within the IRS that can help protect your
   taxpayer rights. TAS can offer you help if your tax problem is causing a hardship, or you've tried but haven't
   been able to resolve your problem with the IRS. If you qualify for TAS assistance, which is always free, TAS
   will do everything possible to help you. Visit www.taxpayeradvocate.irs.gov or call 877-777-4778.
   Additional information
   You can get any of the forms and publications mentioned in this letter by visiting our website at
   www.irs.gov/forms-pubs or by calling 800-TAX-FORM (800-829-3676).
   If you have questions, you can contact the person shown at the top of this letter.
   Sincerely,
   Lett"Vl!VUN F ~ GM 7 9 5 2
   Latrina Fields
   Group Manager

Enclosures:
Form 886-A
Form 6018

                                                                                       Letter 3618 (Rev. 3-2024)
                                                                                       Catalog Number 34809F
                                    Department of the Treasury - Internal Revenue Service                Schedule number
   Form 886-A                                                                                            or exhibit
    (May 2017)                          Explanations of Items

Name of taxpayer Tax Identification Number (last 4 digits) Year/Period ended

ISSUES

 1. Whether the Taxpayer                                       provided information verifying its continued
    qualification for exempt status under Section 50l(c)(3) of the Internal Revenue Code (IRC).
 2. Whether the Taxpayer's exempt status should be revoked for failure to provide information verifying
    its continued qualification for exempt status for the tax period ending

FACTS
The Taxpayer was incorporated in the State of on , as a domestic non-profit
corporation. Article III of its Articles of Incorporation state its purpose: The Corporation is organized and at
all times shall be operated on a non-profit basis exclusively for charitable and educational purposes as
follows:

1. to solicit, receive, administer, and distribute funds for charitable and educational purposes
   within the meaning of Section 501 (c)(3) of the Internal Revenue Code of 1986 or the corresponding
   provision of any future United States Internal Revenue Law (hereinafter the "Code") for the
   benefit of a
   . Such funds may include but are not limited to grant, contracts, gifts, and bequests from
   individuals and from for-profit government and non-profit sources.

   2. to own and manage real and personal property for the benefit of
      and

   3. to engage in any lawful act or activity to advance the specific purposes set forth above.

On , The form a Domestic Nonprofit Corporation in the
state of

On , tax exemption was automatically revoked by the Internal Revenue Service.

On , the Internal Revenue Service posted notice of automatic revocation on website.

On , the Internal Revenue Service (IRS) granted tax-exemption reinstatement to the
Taxpayer under IRC Section 50l(c)(3), and further classified it as a Type III supporting functionally
integrated public charity described in IRC Sections 509(a)(3), effective

In , the assigned agent began an examination of the Taxpayer's Form 990 for tax year ended

On , the assigned agent mailed the initial contact letter and Information Document
Request (IDR) to the Taxpayer at the address

Catalog Number 20810W Page 1 www.irs.gov Form 886-A (Rev. 5-2017)
Department of the Treasury - Internal Revenue Service Schedule number
Form 886-A or exhibit
(May 2017) Explanations of Items
Name of taxpayer Tax Identification Number (last 4 digits) Year/Period ended

On , the State of issued the Taxpayer a Nohce Prior to Revocation for
Failure to File Annual Report.

On , the day of the -day response period, the assigned agent called the number
on the Taxpayer's Form 990 to confirm receipt of the Information Document Report (IDR). No one answer
the telephone number provided.

On ,a telephone call was made by the agent to reach the Taxpayer. No one
answer the telephone phone. The agent decided he would attempt to contact the organization after the
break ends after since the organization is affiliated with a and might have the same
scheduled breaks.

On ,a telephone call was made by the agent to reach the Taxpayer. The
secretary answered the phone. The agent asked if he could speak with the Taxpayer, and she said she would
have the call him back.

On , , the of , returned the
agent's phone call. He inquired about the agent's identity and why he sought the Taxpayer. The agent
explained that he was only permitted to speak with the Taxpayer and could not communicate with him
regarding the organization unless he had received authorization from the Taxpayer. The expressed
his displeasure that the agent could not speak with him regarding the Taxpayer. In response, he stated that he
was the 's and was responsible for handling any matter regarding the . The
also stated that the supporting organization the agent attempted to contact had been dissolved, and at least
one of its board members had passed away.

On , the assigned agent reissued the initial contact letter and IDR to the following address
. No response was received by the assigned agent. The
agent sent the documents certified with a return receipt.

On , the assigned agent received a call from . The stated that they
received the initial letter and IDR sent on , as well as the reissued letter and IDR sent
on . Since the conversation with the agent on , the has been
unable to locate or contact any of the Taxpayer officers. He reiterated the fact that he does not have any
knowledge that the Taxpayer has been operational since he assumed the role of m

On , the State of issued the Taxpayer a Certificate of Revocation for Failure
to File Annual Report.

The Taxpayer has not filed a tax return for . The organization's last return, form 990 (Return of
Organization Exempt from Income Tax), was filed electronically with the Internal Revenue Service on

Catalog Number 2081 ow Page 2 www.irs.gov Form 886-A (Rev. 5-2017)
Department of the Treasury - Internal Revenue Service Schedule number
Form 886-A or exhibit
(May 2017) Explanations of Items
Name of taxpayer Tax Identification Number (last 4 digits) Year/Period ended

For tax year , form 990 (Return of Organization Exempt from Income Tax) listed the officers' names
but not their telephone numbers. The Taxpayer's return listed contact number, which was the number
of

LAW
IRC Section 6033(a)(l) provides in part that every organization exempt from taxation under section 501(a)
shall file an annual return, stating specifically the items of gross income, receipts, and disbursements, and
such other information for the purpose of carrying out the internal revenue laws as the Secretary may by
forms or regulations prescribe, and shall keep such records, render under oath such statements, make such
other returns, and comply with such rules and regulations as the Secretary may from time to time prescribe.

Treasury Regulations Section (Treas. Reg.) 1.6001-l(a) provides in part that any person subject to tax under
Subtitle A of the Code, or any person required to file a return of information with respect to income, shall
keep such permanent books of account or records, including inventories, as are sufficient to establish the
amount of gross income, deductions, credits or other matters required to be shown by such person in any
return of such tax or information.

Treas. Reg. 1.6001-l(c) provides in part that every organization exempt from tax under section 501(a) shall
keep such permanent books of account or records, including inventories, as are sufficient to show
specifically the items of gross income, receipts, and disbursements. Such organizations shall also keep such
books and records as are required to substantiate the information required by section 6033.

Treas. Reg. 1.6001-1 (d) provides in part that the district director may require any person, by notice served
upon him, to make such returns, render such statements, or keep such specific records as will enable the
district director to determine whether or not such person is liable for tax under Subtitle A of the Code.

Treas. Reg. 1.6001-1 (e) provides in part that the books or records required by this section shall be kept at all
times available for inspection by authorized internal revenue officers or employees and shall be retained so
long as the contents thereof may become material in the administration of any internal revenue law.

Treas. Reg. 1.6033-2(i)(2) provides in part that every organization which is exempt from tax shall submit
such additional information as may be required by the Internal Revenue Service for the purpose of inquiring
into its exempt status and administering the provisions of Subchapter F, Chapter 1 of Subtitle A of the Code,
section 6033, and Chapter 42 of Subtitle D of the Code.

Revenue Ruling 59-95, 1959-1 C.B. 627 held that failure or inability to file the required information return
or otherwise to comply with the provision of section 603 3 of the Code and the regulations which implement
it, may result in the termination of the exempt status of an organization previously held exempt, on the
grounds that the organization has not established that it is observing the conditions required for the
continuation of an exempt status.

TAXPAYER'S POSITION
The Taxpayer has not provided a position.

Catalog Number 20810W Page 3 www.irs.gov Form 886-A (Rev. 5-2017)
Department of the Treasury - Internal Revenue Service Schedule number
Form 886-A or exhibit
(May 2017) Explanations of Items
Name of taxpayer Tax Identification Number (last 4 digits) Year/Period ended

GOVERNMENT'S POSITION
IRC Section 6033(a)(l) requires exempt organizations to file annual information returns (Form 990, Form
990-EZ, or Form 990-PF) with an exception for organizations with annual gross receipts not normally more
than$ . IRC Section 6033(a)(l) and Treas. Reg. 1.6001-1 require exempt organizations to keep
permanent books of account or records to substantiate the information report on the annual information
returns, and to provide such records upon request from an authorized internal revenue agent.

No response has been received from the Taxpayer, via telephone, mail, nor electronic mail, to substantiate
its qualification for tax-exempt status as indicated on its Forms 990, nor has any requests for extensions of
time to provide such information been received. The examiner made multiple attempts to contact the
Taxpayer via phone and mail, with no response.

The of the ( ) that the Taxpayer filed for an
exemption to support asserted that he is not an officer or authorized individual of the Taxpayer, he is not in
contact with any authorized individual for the Taxpayer, and the Taxpayer is not and has never been
operational.

The Taxpayer has not provided information or testimony to assert its qualification for tax exemption under
IRC Section 50l(c)(3). The examiner is unable to verify that it is organized and operated exclusively for
exempt purposes to justify its tax-exempt status.

CONCLUSION
The Taxpayer has failed to provide information verifying its continued qualification for exempt status under
IRC 50l(c)(3) and should have its status revoked for the tax period ending , effective

Catalog Number 20810W Page 4 www.irs.gov Form 886-A (Rev. 5-2017)