The Office of Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes) will rule on the tax consequence of proposed changes to an organization's purposes or activities. Thus, if you are unsure about whether proposed changes are consistent with your status as an exempt organization, you may want to request a private letter ruling. Revenue Procedure 2023-1 (updated annually) provides procedures for private letter ruling requests. The Exempt Organizations Determinations office issues determination letters on matters listed in Section 3 of Revenue Procedure 2023-5 including requests for recognition of tax exemption, requests for exception from Form 990 filing requirements, and other miscellaneous determination requests. The Determinations office also issues determination letters involving classification and reclassification of private foundation status described in Revenue Procedure 2023-5 (updated annually). In some areas, the law requires that an organization notify the Internal Revenue Service or receive an advance determination before undertaking a transaction resulting in certain tax consequences. Thus, an exempt organization must request a private letter ruling or determination with respect to the following issues: Advance approval of scholarship programs, and certain other grant-making procedures, of private foundations (Internal Revenue Code section 4945(g)) Voluntary termination of private foundation status, except by transferring assets to, or operating as, a public charity (Code sections 507(b)(1) and (2)) Certain determinations regarding application of the neighborhood land rule (Code section 514(b)(3)) Status as an exempt operating foundation (Code section 4940(d)) Extension of disposal period for certain excess business holdings (Code section 4943(c)(7)) Advance approval of private foundation voter registration activities (Code section 4945(f)) Certain changes in an organization's accounting methods and periods (see Publication 4221-PC PDF, page 20, for a general discussion of accounting methods and periods) Treatment of a grant as an unusual grant under sections 1.170A-9(e)(6)(ii) and 1.509(a)-3(c)(3) and related provisions of the Income Tax Regulations. Appendix A of Revenue Procedure 2023-5 (updated annually) lists the required user fees for determination letter requests and private letter rulings. Additional information Form 8940 for Miscellaneous Determination Requests Return to Life Cycle of a Public Charity
