IRS1.htm February 5, 2007 Return to 501(c)(3) home page
Letter received from the IRS today
of the Treasury
Internal Revenue Service
TEGE:EO:7886:JAN MS O540
1220 SW Third Ave.
Portland, OR 97204
Contact Person: Jennifer Nicolin id# 95152
Response Due Date: February 21,2007
January 30, 2007
Community Association, Inc.
c/o Richard K Riley
P.O. Box 3
Trilby, FL 33593-0033
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
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.
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
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."
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)."
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."
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.
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