Memo Provides Procedures to Waive Restrictions for Church Exams

1. Confirm that the organization is a church. Generally, a church is identified with foundation status code 10 and/or filing requirement code 06 in IDRS. However, if the organization does not have either of these codes but there is a reason to believe it may be claiming to be a church, contact your group manager and review IRM 4.75.39.6, Source of Case — Organization Claims to be a Church, or Church by Inference.

2. Conduct a pre-contact analysis following IRM 4.75.10, Exempt Organizations Examination Procedures.

• If there are any Large, Unusual, Questionable (LUQ) items in addition to the claim or abatement issue, follow Notice of Church Tax Inquiry procedures in IRM 4.75.39, Church Tax Inquiries and Examinations Under IRC 7611.

3. Prepare the waiver package and submit it to your group manager for review. The waiver package includes:

• Letter 6249, Waiver of IRC section 7611.

• Form 15239, Waiver of the Provisions of Section 7611. In the designated spaces, insert the organization's legal name and description of the subject matter to which this waiver applies (e.g., employment tax claim for tax year(s)).

• A memo to your area manager including a brief summary of:

  • The claim or abatement request

  • The subject matter

  • Issue(s)

  • Tax period(s) covered

  • Method(s) used to determine church status

  • Other pertinent information

• A copy of the claim or abatement request.

4. Secure approval to offer the waiver from the Director, Exempt Organizations Examinations (EOE).

• Update the case chronology record to notate the routing through the various management levels.

5. Upon approval from the Director, EOE, offer the waiver to the church by sending the Letter 6249, Form 15239 and Publication 5328, Statement of Administrative and Constitutional Rights.

• Send using certified mail to verify that the letter was received at the address provided in the claim or abatement request.

• Allow 15 calendar days for the church to respond.

• Upon the church's request, allow a reasonable amount of time to respond to Letter 6249.

• If the church declines the waiver or does not timely respond to Letter 6249, follow the IRC Section 7611 procedures under IRM 4.75.39.

• Update the Definer Code for the RCCMS case file by selecting 8311, IRC Section 7611 Waivers from the drop-down menu.

6. Upon receipt of the signed Form 15239 from the organization:

• Verify the form was properly completed including a valid signature by an officer, director, trustee or other authorized official. It should not be signed by a Power of Attorney (POA).

• Date-stamp the valid Form 15239 and maintain it in the casefile. Do not send the church a copy of the completed Form 15239.

7. The examiner should follow the normal procedures for claims and abatements set forth in IRM 4.75.37.

8. Consult your group manager (and Division Counsel as necessary) if:

• The church later states that they wish to revoke a previously signed waiver. By signing the waiver, the church only voluntarily waived IRC Section 7611 procedures for processing the claim or abatement relating to the specific tax period.

• Additional compliance issues arise during the examination of the claim or abatement.

• The church modifies the waiver, for example by striking out the description included in the waiver and adding something different.

• Any other circumstances arise that are not addressed in this memo.