IRS Letter Recommending Closure of Collegiate Housing Foundation Audit
IRS Letter Recommending Closure of Collegiate Housing Foundation Audit
- AuthorsMiller, Thomas J.
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Area/Tax Topics
- Industry GroupsNonprofit sector
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2002-26992 (2 original pages)
- Tax Analysts Electronic Citation2002 TNT 238-19
3613 Stein Street
Mobile, AL 36608
Employer Identification Number: 63-1173425
Dear Sir or Madam:
[1] We have completed our consideration of the Request for Technical Advice in connection with an examination of your tax exempt status for fiscal years 1998-2000. After reviewing the examination findings, we conclude that you are and have been operated for the exempt purposes of assisting colleges and universities that are exempt under section 501(c)(3) of the Code or described in section 511(a)(2)(B) to provide dormitories and other student housing options for their enrolled students.
[2] In response to our concern that all your projects continue to be operated under the auspices of a specific college or university and within its rules and regulations regarding student housing, you have chosen to become a membership organization. You have amended your Articles of Incorporation to provide that membership is limited to colleges and universities that are exempt under section 501(c)(3) of the Code or described in section 511(a)(2)(B). Your bylaws have been amended to provide that any college or university for which you will own or operate a student housing facility or related improvements will become a member and remain a member as long as you own or operate the facilities. Your Articles and by-laws have been further amended to provide that your members shall elect or appoint your board of directors.
[3] In response to concerns we raised regarding possible private benefit to your governing board of directors, you have demonstrated that you are not controlled, directly or indirectly, by any person or entity providing development, construction, financing, or management services in connection with any of your projects. To provide ongoing assurance of the independence of your board of directors, you have amended your Articles of Incorporation to prohibit any individual who, directly or indirectly, provides development, construction, financing, or management services in connection with any of your projects from serving as a director.
[4] The examination also revealed that your Articles of Incorporation stated a purpose too broad to satisfy the organizational test set forth in section 1.501(c)(3)-1(a)(1) of the Income Tax Regulations. You have amended your Articles of incorporation to limit your purposes to those that are charitable within the meaning of section 501(c)(3) of the Code.
[5] We have accepted the amendment of your Articles, and by-laws as sufficient to correct the organizational defects. Since you otherwise satisfied the operational requirements for exemption under section 501(c)(3), your exemption will continue to be recognized retroactively to the date of your incorporation.
[6] We are returning your case to the Examination Division to permit them to complete the examination of your 1998-2000 fiscal years. We are recommending that they close the Exam without change to your exempt status based on our discussion herein.
[7] If you have any questions about this ruling, please contact the person whose name and telephone number are shown in the heading of this letter.
Thomas J. Miller
Manager,
Exempt Organizations Technical
Department of the Treasury
Washington, D.C.
- AuthorsMiller, Thomas J.
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Area/Tax Topics
- Industry GroupsNonprofit sector
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2002-26992 (2 original pages)
- Tax Analysts Electronic Citation2002 TNT 238-19