IRS1.htm    February 5, 2007    Return to 501(c)(3) home page

Letter received from the IRS today


Department of the Treasury
Internal Revenue Service
TEGE:EO:7886:JAN   MS O540
1220 SW Third Ave.
Portland, OR 97204

Employer Identification Number.20-1815131
DeptLtrNo: 17053-135-01202-6
Contact Person: Jennifer Nicolin      id# 95152
Response Due Date: February 21,2007

Date:     January 30, 2007 

Greater Trilby Community Association, Inc.
c/o Richard K Riley
P.O. Box 3
Trilby, FL 33593-0033 

Dear Applicant:

Before we can recognize your organization as being exempt from Federal income tax, we must have enough information to show that you have met all legal requirements. You did not include the information needed to make that determination on your Form 1023, Application for Recognition of Exemption Under Section 501 (c)(3) of the Internal Revenue Code (IRC).

To help us determine whether your organization is exempt from Federal income tax, please send us the requested information shown on the attached sheet by the Response Due Date shown above. We can then complete our review of your application. An extension of time to submit the requested information may be granted for good cause. If you need an extension, you must request it before the Response Due Date.

If we do not hear from you within that time, -we will assume you do not want us to consider the matter further and will close your case. In that event, as required by Code section 6104(c), we will notify the appropriate state officials that, based on the information we have, we cannot recognize you as an organization, described in Code section 501(c)(3). As a result, the Internal Revenue Service will treat your organization as a taxable entity. If we receive the information after the Response Due Date, we may ask you to send us a new Form 1023.

In addition, if you do not provide the requested information in a timely manner, we will consider that you have not taken all reasonable steps to secure the determination you requested. Under Code section 7428(b)(2), this may be considered as failure to exhaust administrative remedies available to you within the Service. Therefore, you may lose your rights to a declaratory judgment under Code section 7428.

PLEASE INCLUDE A COPY OF THIS LETTER WITH YOUR RESPONSE.  Please mail the information requested to the address shown above. If you have any questions, please contact the person whose name and telephone number are shown in the heading of this letter. Thank you for your cooperation.

Sincerely yours,
Jennifer Nicolin
Exempt Organization Specialist


Note: Your response to this letter must be submitted over the signature of an authorized person or of an officer whose name is listed on the application.

1)      In order for an organization to qualify as one described in section 501(c)(3) of the Internal Revenue Code (IRC), its governing instrument (your Articles of Incorporation, not just the Bylaws) must contain certain provisions to meet the organizational test. It will be necessary for you to amend your Articles of Incorporation to meet this test. Please ADD the following provisions:

"No part of the net earnings of the corporation shall inure to the benefit of, or be distributable to its members, trustees, officers, or other private persons, except that the corporation shall be authorized and empowered to pay reasonable compensation for services rendered and to make payments and distributions in furtherance of the purposes set forth in the purpose clause hereof. No substantial part of the activities of the corporation shall be the carrying on of propaganda, or otherwise attempting to influence legislation, and the corporation shall not participate in or intervene in (including the publishing or distribution of statements) any political campaign on behalf of any candidate for public office."

"Notwithstanding any other provision of these Articles, the corporation shall not carry on any other activities nor have purposes not permitted (a) by a corporation exempt from Federal income tax under section 501(c)(3) of the Internal Revenue Code of 1986 (or the corresponding provision of any future United States Internal Revenue Law) or (b) by a corporation contributions to which are deductible under section 170(c)(2) of the Internal Revenue Code of 1986 (or the corresponding provision of any future United States Internal Revenue Law)."

"Upon winding up and dissolution of this corporation, after paying or adequately providing for the debts and obligations of the corporation, the remaining assets shall be distributed to a non-profit fund, foundation, or corporation which is organized and operated exclusively for charitable, educational, religious, and/or scientific purposes and which has established its tax exempt status under section 501(c)(3) of the Internal Revenue Code."

 Amendments made by corporations must be endorsed and/or filed with the appropriate state official. Please submit a copy of the endorsed amendment as soon as you receive it from the appropriate state entity.


 2)      Since the tax years ending 2005 and 2006 have now been completed, please provide the actual financial information for each of these tax years. Then, provide projections of the sources and amounts of revenue you expect to receive in the current tax year (2007) and subsequent tax year (2008). Please be as specific as possible in listing and projecting how much revenue you received and expect to receive (once your exemption is granted) and the sources of that revenue. If you will receive fees from classes, please list out these sources and amounts separately from contributions and donations. Also list out fundraising events and sales separately.

Also provide in this financial representation a schedule of the expenses that you incurred in the tax years ending 2005 and 2006 and that you expect for the 2007 and 2008 tax years. List out the expenses and amounts that occurred and that would be required in each tax year to conduct the activities you expect to conduct.  Include any salaries paid to those who assist in conducting the organization's activities.