IRS denies 501(c)(3) status to a dog-training organization

Plain-English summary

The IRS issued a final adverse determination denying tax-exempt status under IRC § 501(c)(3) to a membership organization that conducted hunt tests and field trials for dogs. The organization taught dog owners how to train their dogs, but its primary activities involved dog training, testing, competitions, and maintaining the grounds. The IRS concluded that these activities did not serve exclusively charitable or educational purposes because the dogs, rather than their owners, were the primary objects of the training and evaluation. It therefore concluded that the organization failed the operational test for exemption. Donors generally cannot deduct contributions to the organization under IRC § 170.

Ruling snapshot

• Question: Does the dog-training organization qualify for exemption under IRC § 501(c)(3)?
• Outcome: Denied.
• Key authorities: IRC §§ 501(a), 501(c)(3), 501(c)(7), 501(h), 6110, and 7428(b)(2); Treas. Reg. §§ 1.501(c)(3)-1(a)(1), (c)(1), and (d)(3)(i); Rev. Ruls. 71-421 and 73-456; American Kennel Club, Inc. v. Hoey, 148 F.2d 920 (1945); Ann Arbor Dog Training Club, Inc. v. Commissioner, 74 T.C. 2107 (1980); Better Business Bureau.

Full text (IRS public release)

Department of the Treasury
Internal Revenue Service
Tax Exempt and Government Entities

Date:
06/09/2026
Employer ID number:

Form you must file:

Tax years:

Release Number: 202636017 Person to contact:
Release Date: 9/4/26
UIL Code: 501.03-00, 501.03-30

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

Department of the Treasury
Internal Revenue Service

Date:
04/20/2026
Employer ID number:

Person to contact:

Name:
ID number:
Telephone:
Fax:
Legend: UIL:
S= Date 501.03-00
T= State 501.03-30
U= Name
V=Name
Dear

We considered your application for recognition of exemption from federal income tax under Internal Revenue Code (IRC) Section 501(a). We determined that you don’t qualify for exemption under IRC Section 501(c)(3). This letter explains the reasons for our conclusion. Please keep it for your records.

Issues
Do you qualify for exemption under IRC Section 501(c)(3)? No, for the reasons stated below.

Facts
You submitted Form 1023-EZ Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code. You attest that you incorporated on S in T.

You attest that you have the necessary organizing document, that your organizing document limits your purposes to one or more exempt purposes within the meaning of the IRC Section 501(c)(3), that your organizing document does not expressly empower you to engage in activities, other than an insubstantial part, that are not in furtherance of one or more exempt purposes, and that your organizing document contains the dissolution provision required under Section 501(c)(3).

You attest that you are organized and operated exclusively to further charitable purposes. You attest that you have not conducted and will not conduct prohibited activities under IRC Section 501(c)(3). Specifically, you attest you will:

• Refrain from supporting or opposing candidates in political campaigns in any way
• Ensure that your net earnings do not inure in whole or in part to the benefit of private shareholders or
  individuals

Letter 4034 (Rev. 01-2021)
Catalog Number 47628K

2

: Not further non-exempt purposes (such as purposes that benefit private interests) more than insubstantially

• Not be organized or operated for the primary purpose of conducting a trade or business that is not related
  to your exempt purpose(s)

• Not devote more than an insubstantial part of your activities attempting to influence legislation or, if you

made a Section 501(h) election, not normally make expenditures, in excess of expenditure limitations outlined in Section 501(h)

• Not provide commercial-type insurance as a substantial part of your activities

You attest on Form 1023-EZ that you encourage and promote breeding of V and the improvement of them on the field and on the bench, and you encourage sportsman-like competition both in the field and the show ring.

We asked for additional information regarding your attestations. You conduct U sponsored hunt tests and field trials for V. You teach and train V owners how to train V for field trials. You provide support and information to V owners who want to register V with U. Your activities are open to the public for anyone who has V registered with U.

You conduct several competitions per year sponsored by U for several different days. You spend all your time and resources on your activities. Most of your time and resources are spent on ground maintenance where you conduct your activities. You stated you specifically sponsor U field trials and hunt tests for V.

You are a membership organization. Anyone can participate in your activities if they have a U and V. You conduct your activities at the grounds in your area.

You charge entry fees for each V entered in the competition. A portion of this fee goes to U, and the rest of the fee is used for awards for V. All your time and resources are used for these activities, which include ground maintenance and V awards. Your activities provide training and support for individuals interested in V.

Law

IRC Section 501(c)(3) provides for the recognition of exemption of organizations that are organized and operated exclusively for religious, charitable, educational, or other purposes as specified in the statute. No part of the net earnings may inure to the benefit of any private shareholder or individual.

Treasury Regulation Section 1.501(c)(3)-1(a)(1) provides that, for an organization to be exempt and described in IRC Section 501(c)(3), that organization must be both organized and operated exclusively for one or more of such exempt purposes specified in such section. If an organization fails to meet either the organizational test or the operational test, it is not exempt.

Treas. Reg. Section 1.501(c)(3)-1(c)(1) provides that an organization will be regarded as operated exclusively for one or more exempt purposes only if it engages primarily in activities which accomplish one or more of such exempt purposes as specified in IRC Section 501(c)(3). An organization will not be so regarded if more than an insubstantial part of its activities is not in furtherance of an exempt purpose.

Treas. Reg. Section 1.501(c)(3)-1(d)(3)(i) provides that the term “‘educational,” as used in IRC Section 501(c)(3), relates to the instruction or training of the individual for the purpose of improving or developing

Letter 4034 (Rev. 01-2021)
Catalog Number 47628K

3

his/her capabilities or the instruction of the public on subjects useful to the individual and beneficial to the community.

Revenue Ruling 71-421, 1971-2 C.B. 229, held that a dog club, exempt under IRC Section 501(c)(7) and formed to promote the ownership and training of purebred dogs which conducted obedience training classes, could not be reclassified as an educational organization under Section 501(c)(3).

Rev. Rul. 73-456, C.B.342, held this organization is a training center for blind people. The center was established to instruct the blind to properly function with the aid of guide dogs. It operates a training center where programs are conducted to train dogs to lead and assist the blind, and to instruct them to function with their dogs. This organization has been recognized as exempt from federal income tax under IRC Section 501(c)(3).

In American Kennel Club, Inc v. Hoey, 148 F.2d 920 (1945), the court held that the taxpayer was not exempt from federal income taxation under the predecessor to IRC Section 501(c)(3) because regulating the sport of dog shows and field trials does not further charitable, educational, or scientific purposes.

In Ann Arbor Dog Training Club, Inc v. Commissioner, 74T.C, 2107 (1980) the court held that the training of animals does not come within the meaning of “educational” as set forth in IRC Section 501(c)(3). The organization held dog obedience training classes, awarded the dogs a degree after completion of the course, and awarded them prizes at show events. While the owners of the dogs received some instructions as to the training of dogs, it was the dog that was the primary object of the training and evaluation.

Application of law

You do not meet the requirements for recognition of tax exemption under IRC Section 501(c){3) because you have failed the operational test as described in Treas. Reg. Section 1.501(c)(3)-1(a)(1) and Treas. Reg. Section 1.501(c)(3)-1(c)(1). You primarily promote U sponsored hunt tests and field trials for V. You teach and train V owners how to train V for field trials. You provide support and information to V owners who want to register V with U. Your primary activity is dog training and testing. Such activities do not serve exclusively charitable or educational purposes under Treas. Reg. Section 1.501(c)(3)-1(d)(2) and Treas. Reg. Section 1.501 (c){3)-

1(d)(3)(1).

You are like the organization described in American Kennel Club Inc because your primary activities consist of promoting the activities involving field trials and hunt tests for V under U rules and regulations. Regulating field trials and hunt tests do not further educational purposes. Therefore, you have failed the operational test for exemption under IRC Section 501(c)(3).

You are like the organizations in Rev. Rul. 77-421 and Ann Arbor Dog Training Club. Your dog training and testing activities do not fall under the meaning of educational as defined in the regulations. While the dog owner may receive some instructions in how to give commands to their dog, it is the dog that is the primary object of the training. Conversely, you are unlike Rev. Rul. 73-456 where the primary focus of the training was on the blind individual who received detailed instruction in the use and care of guide dogs, and not the dogs themselves.

Like the organization in Better Business Bureau, the presence of a single noneducational purpose (dog training and testing), if substantial in nature, makes you ineligible for exemption under IRC Section 501(c)(3).

Letter 4034 (Rev. 01-2021)
Catalog Number 47628K

Conclusion

Based on the facts presented, you do not meet the operational test for exemption under IRC Section 501(c)(3)

because you are operated for substantial nonexempt purposes; therefore, you do not qualify for exemption under IRC Section 501(c)(3)

If you agree
If you agree with our proposed adverse determination, you don’t need to do anything. If we don’t hear from

you within 30 days, we’ll issue a final adverse determination letter. That letter will provide information on your income tax filing requirements.

If you don't agree

You have a right to protest if you don’t agree with our proposed adverse determination. To do so, send us a protest within 30 days of the date of this letter. You must include:

• Your name, address, employer identification number (EIN), and a daytime phone number
• A statement of the facts, law, and arguments supporting your position

• A statement indicating whether you are requesting an Appeals Office conference

• The signature of an officer, director, trustee, or other official who is authorized to sign for the
  organization or your authorized representative

• The following declaration:

For an officer, director, trustee, or other official who is authorized to sign for the organization: Under penalties of perjury, I declare that I have examined this request, or this modification to the request, including accompanying documents, and to the best of my knowledge and belief, the request or the modification contains all relevant facts relating to the request, and such facts are true, correct, and complete.

Your representative (attorney, certified public accountant, or other individual enrolled to practice before the IRS) must file a Form 2848, Power of Attorney and Declaration of Representative, with us if they haven’t

already done so. You can find more information about representation in Publication 947, Practice Before the IRS and Power of Attorney.

We’ll review your protest statement and decide if you gave us a basis to reconsider our determination. If so, we'll continue to process your case considering the information you provided. If you haven’t given us a basis for reconsideration, we’ll send your case to the Appeals Office and notify you. You can find more information in Publication 892, How to Appeal an IRS Determination on Tax-Exempt Status.

If you don’t file a protest within 30 days, you can’t seek a declaratory judgment in court later because the law requires that you use the IRC administrative process first (IRC Section 7428(b)(2)).

Where to send your protest
Send your protest, Form 2848, if applicable, and any supporting documents to the applicable address:

Letter 4034 (Rev. 01-2021)
Catalog Number 47628K

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U.S. mail: Street address for delivery service:
Internal Revenue Service Internal Revenue Service

EO Determinations Quality Assurance EO Determinations Quality Assurance Mail Stop 6403 550 Main Street, Mail Stop 6403

PO Box 2508 Cincinnati, OH 45202

Cincinnati, OH 45201

You can also fax your protest and supporting documents to the fax number listed at the top of this letter. If you fax your statement, please contact the person listed at the top of this letter to confirm that they received it.

You can get 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 listed at the top of this letter,

Contacting the Taxpayer Advocate Service

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 if 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.

We sent a copy of this letter to your representative as indicated in your power of attorney,

Sincerely,

Stephen A. Martin
Director, Exempt Organizations
Rulings and Agreements

Letter 4034 (Rev. 01-2021)
Catalog Number 47628K