IRS Removes Some Exempt Org Guidance on Advance Ruling Process

Part I. Rulings and Decisions Under the Internal Revenue Code of 1986

IRC section 170(b)(1)(A)(vi). — Publicly supported organizations rulings

IRC section 509. — Private foundation defined

26 CFR: 1.170A–9(e)(5) Advance ruling process for publicly supported organizations

26 CFR: 1.509(a)–3(d) Advance rulings to newly created organizations

The Internal Revenue Service (IRS) is continuing its program of reviewing revenue rulings published in the Internal Revenue Bulletin to identify and publish lists of those rulings that are obsolete and therefore are no longer considered determinative because: (1) the applicable statutory provisions or regulations have been changed or repealed; (2) the ruling position is specifically covered by a statute, regulation, or subsequent published position; or (3) the facts set forth no longer exist or are not sufficiently described to permit clear application of the current statute and regulations.

This revenue ruling publishes a list of rulings which provided guidance on the advance ruling process under former 1.170A–9(e)(5) and 1.509(a)–3(d) of the Income Tax Regulations for a newly created organization described in § 501(c)(3) of the Internal Revenue Code (section 501(c)(3) organization). Final regulations promulgated by T.D. 9549, 2011–46 I.R.B. 718, 76 FR 55746–01, eliminated the advance ruling process for determining whether a newly created section 501(c)(3) organization is not a private foundation. See 1.170A–9(f)(5) and 1.509(a)–3(e). Under the new regulations, the IRS will classify a newly created section 501(c)(3) organization as a publicly supported organization in its first five years of existence if it can show in its application for exemption that it can reasonably be expected to receive the requisite public support during such period. See 1.170A–9(f)(4) and 1.509(a)–3(d). The listed revenue rulings have been identified under the IRS's review program as no longer being determinative because the applicable regulations have been changed.

Accordingly, the revenue rulings listed below are hereby declared obsolete.

The IRS will continue to review other revenue rulings relating to the advance ruling process in former §§ 1.170A–9(e)(5) and 1.509(a)–3(d) to identify those that, for the reasons stated above, are inapplicable to future transactions. Therefore, failure to include any particular revenue ruling in the above list should not be construed as an indication that the revenue ruling necessarily is determinative with respect to future transactions.

DRAFTING INFORMATION

The principal author of this revenue ruling is Gregory Schantz of the Office of Associate Chief Counsel (Tax Exempt and Government Entities). For further in-formation regarding this revenue ruling, contact Gregory Schantz at (202) 317-4086 (not a toll-free number).