IRS Published Taxpayer Determination Letter 201427018

Private letter rulings and published taxpayer determination letters. Native document type is retained separately; a determination letter is not labeled a private letter ruling. These taxpayer-specific releases cannot be used or cited as precedent under 26 USC 6110(k)(3); applicability and current legal force are not independently certified. Keep repeated UILC subjects attached to one actual numbered document. Native kind: determination letter; this is not a private letter ruling.

\* TREASURY

INTERNAL

NAL REVENUE DE

SERVICE

TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION

# DEPARTMENT OF THE TREASURY INTERNAL REVENUE SERVICE WASHINGTON, D.C. 20224

Release Number: 201427018

Release Date: 7/3/2014

Date: 4/7/2014

UIL Code: 501.33-00

Contact Person:

Identification Number:

Contact Number:

Employer Identification Number:

Form Required To Be Filed:

Tax Years:
All

Dear

This is our final determination that you do not qualify for exemption from Federal income tax as
an organization described in Internal Revenue Code section 501(c)(3). Recently, we sent you a
letter in response to your application that proposed an adverse determination. The letter
explained the facts, law and rationale, and gave you 30 days to file a protest. Since we did not
receive a protest within the requisite 30 days, the proposed adverse determination is now final.

Because you do not qualify for exemption as an organization described in Code section
501(c)(3), donors may not deduct contributions to you under Code section 170. You must file
Federal income tax returns on the form and for the years listed above within 30 days of this
letter, unless you request an extension of time to file. File the returns in accordance with their
instructions, and do not send them to this office. Failure to file the returns timely may result in a
penalty.

We will make this letter and our proposed adverse determination letter available for public
inspection under Code section 6110, after deleting certain identifying information. Please read
the enclosed Notice 437, Notice of Intention to Disclose, and review the two attached letters that
show our proposed deletions. If you disagree with our proposed deletions, follow the
instructions in Notice 437. If you agree with our deletions, you do not need to take any further
action.

In accordance with Code section 6104(c), we will notify the appropriate State officials of our
determination by sending them a copy of this final letter and the proposed adverse letter. You
should contact your State officials if you have any questions about how this determination may
affect your State responsibilities and requirements.

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If you have any questions about this letter, please contact the person whose name and
telephone number are shown in the heading of this letter. If you have any questions about your
Federal income tax status and responsibilities, please contact IRS Customer Service at
1-800-829-1040 or the IRS Customer Service number for businesses, 1-800-829-4933. The
IRS Customer Service number for people with hearing impairments is 1-800-829-4059.

Sincerely,

Director, Exempt Organizations

Enclosure
Notice 437
Redacted Proposed Adverse Determination Letter
Redacted Final Adverse Determination Letter

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TREASURY
REVENUE BE

TAX EXEMPT AND
GOVERNMENT ENTITIES
DIVISION

## DEPARTMENT OF THE TREASURY INTERNAL REVENUE SERVICE WASHINGTON, D.C. 20224

Date: January 29, 2014

Contact Person:

Identification Number:

Contact Number:

FAX Number:

Employer Identification Number:

LEGEND:

UIL:

B = Name

501.00-00

C = Name

501.03-00

D = Name

501.31-00

E = Name

G = Name

H= Name

P = Name

x = Date

y= Date

Dear

We have considered your application for recognition of exemption from federal income
tax under Internal Revenue Code section 501(a). Based on the information provided,
we have concluded that you do not qualify for exemption under Code section 501(c)(3).
The basis for our conclusion is set forth below.

Issue

Do the available facts show you have failed to pass the operational test, therefore
disqualifying you from exemption under Section 501(c)(3) of the IRC? Yes, for the
reasons described below.

Letter 4036 (CG) (11-2011)
Catalog Number 47630W

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### Alternative Issue

In the event that upon appeal you are found to qualify for exemption under Section
501(c)(3) of the Code, should you be classified as a church under Sections 509(a)(1)
and 170(b)(1)(A)(i)? No, for the reasons described below.

### Facts

You were formed by Articles of Incorporation on x in the State of P. Your Articles of
Incorporation, in part, state you were formed to conduct and maintain a house of
worship in accordance with the traditions of the Hebrew faith and conduct all communal
affairs necessary for a viable community.

You submitted your Form 1023 on y seeking classification as a synagogue under
Section 501(c)(3) of the IRC as described in sections 501(a)(1) and 170(b)(1)(A)(i).
Your activity description in the Form 1023 states your purposes are to provide a house
of worship and prayer services to residents of the community and provide assistance for
individuals who attend services and cannot afford the biannual occurring costs
associated with religious holidays like Passover and Sukkoth.

You have three board members, B as the President, C as the Secretary, and D as the
Treasurer.

Your bank statements showed during a six-month period that there were several
thousand dollars of withdrawals made from your bank account. You said these
withdrawals were made by B using an ATM/debit card and the purpose of some of the
cash withdrawn was to purchase religious items used by the congregation, such as
religious books and articles, tables, chairs, etc. Another large withdrawal was made by
B because you conducted a series of educational lectures and needed to cover
expenses. There were no other details provided about the lectures. You later said the
funds were tracked and monitored by written record of their purpose, which was
reviewed by C. In addition, you ensured the money was used for the intended purpose
by requiring a report and keeping a record of the use and purpose of the withdrawn
funds. You provided hand-written records of these expenses. There was no indication
that C was involved in the monitoring of any funds. There were no receipts or other
documentation to substantiate expenses nor any indication there were any internal
controls in place to monitor funds.

There was no information in your Form 1023 about your facility so we asked for details
including both external and internal pictures of your facility. You provided as a lease
agreement a very general statement signed by H on behalf of G, as G's president that
you have permission to conduct religious services and no rent is charged. G is

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synagogue. You provided one external photograph showing the door of the facility and
two internal photos of a small room with a few tables and chairs. We wrote again to
request a photograph of the broader view of the outside of your facility and a description
of the facility. You provided a photograph showing the outside and a statement that the
owner does not use any portion of the building for its purposes. You also stated there is
a portion rented to a tenant operating a commercial business and two residential
apartments rented to two different tenants. You wrote your portion accommodates 15
people and 10 attend services. You subsequently indicated commercial businesses
have their own entrance. In addition, when we shared information that public records
indicate that your facility is currently in foreclosure, you said you have no knowledge of
this and you do not have information regarding the personal and financial affairs of G.
Finally, you share a telephone number with G to save money.

There was also no information in the Form 1023 about your religious leader so we
asked for details. You initially stated that your Rabbi's name was E and he was not
otherwise gainfully employed. In addition, he does not yet have an official ordainment
certificate and is a rabbinical student who is qualified to lead your services. Later you
submitted information, showing he is a Yeshiva graduate who has received advanced
rabbinical training. You also provided his age to be over 60 and that he is in the nursing
home business. Finally, the address you initially provided for him indicated there was a
synagogue at that address. When we inquired about this, you provided another address
for him.

Your Schedule A stated that you will have regular services. You later wrote you would
only have services, which vary with the Jewish calendar and will be conducted on
Jewish holidays and on special occasions and events and sometimes during the days of
the week. You were unable to provide any literature from your services but stated your
services are advertised through word of mouth with neighbors and those attending
services telling their friends, neighbors, and acquaintances of the available religious
services.

Furthermore, your Schedule A stated you have 15 members in your congregation, but
that you have 25 attendees. You subsequently submitted a congregational directory,
which included 12 individuals. These 12 members included E, the two tenants in your
building and your board members, B, C, and D; however, C also has a synagogue in his
home. When we asked about this you responded that your "congregants include
persons who also pray at other synagogues and who wish to support us. There is no
prohibition in a person praying at more than one synagogue."

We also requested a list of donors. No members of your congregation were listed as
donors. Donors only consisted of H, the president of G, who owns your facility and his
wife, a synagogue and 2 other organizations. H and his wife donated 50% of your
revenue while the synagogue donated 35%. The remaining portion is from 2 other

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donors.

You provided meeting minutes of another organization with your initial Form 1023
submission. The minutes stated: "There was presented to the meeting a specimen of a
proposed certificate to represent the shares of the organization, Resolved that the
specimen for the certificate which has been presented to this meeting be and the same
hereby is, approved and adapted as the certificate to represent these shares of the
organization and it was further resolved that the specimen certificate so presented to
the meeting be annexed to the minutes there of". When this was brought to your
attention, you responded that your accountant used a corporate kit, which contained
standardized meeting minutes for a business corporation and therefore referenced
shares and other items. You then provided meeting minutes for your annual meeting for
the last 2 years. These show the only action taken at each annual meeting was the
election of the same board members. No other items were addressed and there were
no signatures on these minutes.

Moreover, your Articles of Incorporation submitted with your initial Form 1023 state you
"will assist and provide other religious services for the community, such as a religious
school. Your religious school will teach the principals of the Jewish faith and its
traditions as well as English secular studies. You will also maintain classes for the
furtherance of the tenants of Jewish orthodoxy. You will also administer a full time
school program consisting of grades ranging from nursery through the twelfth grade,
post high school and post graduate Rabbinical studies." When we asked for details, you
responded this is only a standard text for a religious organization, which would give you
the right to operate such a school, if you choose and at this time, you do not operate a
school. In addition, this is standard verbiage for Articles of Incorporation for religious
organizations.

Finally, during the processing of your request for exemption, your case was closed
failure to establish once because you did not timely respond to information requests
about your activities and operations. In addition, we wrote five additional information
letters in order to find out about your operations. In total, the processing of your
application has been ongoing for over two years.

### Law

Section 501(a) exempts organizations described in Section 501(c) of the Code from
federal income taxation.

Section 501(c)(3) of the Code describes corporations organized and operated
exclusively for charitable purposes no part of the net earnings of which inures to the
benefit of any private shareholder or individual.

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Section 1.501(c)(3)-1(a)(1) of the regulations states that, in order to be exempt as an
organization described in section 501(c)(3) of the Code, an organization must be both
organized and operated exclusively for one or more of the purposes specified in such
section. If an organization fails to meet either the organizational test or the operational
test, it is not exempt.

Section 1.501(c)(3)-1(c)(1) of the regulations provides that an organization will be
regarded as operated exclusively for one or more exempt purposes only if it engages
primarily in activities which accomplish one or more of such exempt purposes specified
in section 501(c)(3) of the Code. An organization will not be so regarded if more than
an insubstantial part of its activities in not in furtherance of an exempt purpose.

Section 1.501(c)(3)-1(c)(2) of the regulations provides that an organization is not
operated exclusively for one or more exempt purposes if its net earnings inure in whole
or in part to the benefit of private shareholders or individuals. Section 1.501(a)-1(c)
defines the words "private shareholder or individual" to mean persons having a personal
and private interest in the activities of the organization.

Section 1.501(c)(3)-1(d)(1)(ii) of the regulations provides that an exempt organization
must serve a public rather than a private interest. The organization must demonstrate
that it is not organized or operated to benefit private interests such as "designated
individuals, the creator or his family, shareholders of the organization, or persons
controlled, directly or indirectly, by such private interests." Thus, if an organization is
operated to benefit private interests rather than for public purposes, or is operated so
that there is prohibited inurement of earnings to the benefit of private shareholders or
individuals, it may not retain its exempt status.

Rev. Proc. 2014-9 provides that the Internal Revenue Service will recognize the tax-
exempt status of an organization only if its application and supporting documents
establish that it meets the particular requirements of the section under which exemption
is claimed. Section 4.02 states that a determination letter or ruling on exempt status is
issued based solely upon the facts and representations contained in the administrative
record. It further states:

(1) The applicant is responsible for the accuracy of any factual representations
contained in the application.

(2) Any oral representation of additional facts or modification of facts as
represented or alleged in the application must be reduced to writing over the
signature of an officer or director of the taxpayer under a penalties of perjury
statement.

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(3) The failure to disclose a material fact or misrepresentation of a material fact on
the application may adversely affect the reliance that would otherwise be obtained
through issuance by the Service of a favorable determination letter or ruling.

Section 4.03 of that Rev. Proc. states that the organization must fully describe all of the
activities in which it expects to engage, including the standards, criteria, procedures or
other means adopted or planned for carrying out the activities, the anticipated sources
of receipts, and the nature of contemplated expenditures.

In Harding Hospital, Inc. v. United States, 505 F2d 1068 (1974), the court held that an
organization seeking a ruling as to recognition of its tax exempt status has the burden of
proving that it satisfies the requirements of the particular exemption statute. Whether
an organization has satisfied the operational test is a question of fact.

In American Guidance Foundation v. U.S., 490 F. Supp. 304 (D.D.C. 1980), the court
said that, at a minimum, a church must include a body of believers that assemble
regularly in order to worship. It must also be reasonably available to the public in the
conduct of worship, in its educational instruction, and in its promulgation of doctrine. An
organization of a few family members who attend worship services at a relative's
apartment was held not to be a church under sections 509(a)(1) and 170(b)(1)(A)(i)
because it did not meet these requirements. In addition, it was held that when the
assets of an organization are used to pay for the living expenses of an individual(s)
denial of exemption is appropriate. Generally, there are fourteen criteria used in
determining whether or not an organization qualifies as a church. These criteria are as
follows:

a.
A distinct legal existence

b.
A recognized creed and form of worship

c.
A definite and distinct ecclesiastical government

d.
A formal code of doctrine and discipline

e.
A distinct religious history

f.
A membership not associated with any other church or denomination

g.
Ordained ministers ministering to its congregation

h.
Ordained ministers selected after completing prescribed studies

i.
Literature of its own

j.
Established place of worship

k.
Regular congregation

1\.
Regular religious services

m.
Sunday schools for religious instruction of the young

n.
Schools for the preparation of ministers

In Bubbling Well Church of Universal Love, Inc. v. Commissioner, 74 T.C. 531 (1980),
an action for declaratory judgment pursuant to section 7428(a), the Tax Court
Letter 4036 (CG) (11-2011)
Catalog Number 47630W

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considered an adverse ruling by the IRS on an application for exempt status as a
church. The applicant had declined to furnish some information, and made answers to
other inquiries that were vague and uninformative. Based on the record, the Court held
that the applicant had not shown that no part of its net earnings inures to the benefit of
the family or that petitioner was not operated for the private benefit.

In Basic Unit Ministry of Alma Karl Schurig v. Commissioner, 511 F. Supp. 166 (D.D.C.
1981), aff'd, 670 F.2d 1210 (D.C. Cir. 1982), the court upheld the IRS's denial of
exempt status as a religious organization in a declaratory judgment action. The court
held that in factual situations where there is evident potential for abuse of the exemption
provision, a petitioner must openly disclose all facts bearing on the operation and
finances of its organization. Here plaintiff did not proffer sufficiently detailed evidence of
its charitable disbursements, or the extent of its support of its members. Rather, plaintiff
continually responded that it had already provided the data, or could not furnish
anything further. Therefore, the court found that the applicant did not meet its burden to
positively demonstrate that it qualifies for the exemption. The Court of Appeals for the
District of Columbia Circuit, in affirming that the organization had not met its burden of
establishing that no part of its net earnings inured to any private individual, observed:

"taxpayer confuses a criminal prosecution, in which the government carries the
burden of establishing the defendant's guilt, with a suit seeking a declaratory
judgment that plaintiff is entitled to tax-exempt status, in which the taxpayer,
whether a church or an enterprise of another character, bears the burden of
establishing that it qualifies for exemption."

In National Association of American Churches v. Commissioner, 82 T.C. 18 (1984), the
court denied a petition for declaratory judgment that the organization qualified for
exempt status as a church. In addition to evidence of a pattern of tax-avoidance in its
operations, the court noted that the organization had failed to respond completely and
candidly to the IRS during administrative processing of its application for exemption. An
organization may not declare what information or questions are relevant in a
determination process. It cited a number of declaratory relief actions that upheld
adverse rulings by the Service because of the failure of the applicants to provide full and
complete information on which the Service could make an informed decision.

In Peoples Prize v. Commissioner, T.C. Memo 2004-12 (2004), the court upheld the
Service's determination that an organization failed to establish exemption when the
organization failed to provide requested information. The court stated, "[Applicant] has,
for the most part, provided only generalizations in response to repeated requests by [the
Service] for more detail on prospective activities. Such generalizations do not satisfy us
that [applicant] qualifies for the exemption."

Application of Law

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## Issue I

You are not as described in section 501(c)(3) of the Code because you have not
established that you meet the operational test as per Section 1.501(c)(3)-1(a)(1) of the
regulations. You have not shown as required by Section 1.501(c)(3)-1(c)(1) that you are
primarily engaged in activities which accomplish one or more of such exempt purposes
specified in section 501(c)(3) of the Code. You also have not demonstrated that you
meet Section 1.501(c)(3)-1(c)(2) of the regulations and you have not demonstrated that
you are serving public interests as opposed to private interests as required by Section
1.501(c)(3)-1(d)(1)(ii) of the Regulations. For example:

· You have not demonstrated that your net earnings are not inuring to B. He
had indiscriminate use of your debit card to withdraw thousands of dollars.

. You have a small board and there is no indication that the board members
have an active role in your operations such as approving the use of your
funds. Your meeting minutes and other information provided do not show the
active involvement of board members.

· You have not shown you have adequate internal controls to safe guard
assets. Your lack of records concerning the withdrawals B made show a lack
of financial controls.

You have not met the requirements of Revenue Procedure 2014-9, which provides an
organization seeking exemption must fully describe all activities including standards,
criteria, and procedures. You only provided generalities and often provided inconsistent
information. Moreover, you do meet Sections 4.03 and 4.03(2) of Revenue Procedure
2014-9 because you did not provide information we asked for after repeated requests.
For example:

. You initially stated that your Rabbi does not conduct services at any other
location and is not otherwise gainfully employed. Later you said he is in the
nursing home business. You also said he does not yet have an official
ordainment certificate; he is a rabbinical student and is qualified to lead your
services. You later submitted your Rabbi's resume, which indicates he is in fact
a yeshiva graduate and has received advanced rabbinical training.

. One of your officers, C, has a synagogue in his home. You listed C in your
congregational directory as one of your congregants. When we asked about this
you responded that your "congregants include persons who also pray at other
synagogues and who wish to support us. There is no prohibition in a person
praying at more than one synagogue."

. You initially said you have 15 members of your congregation, but that you have
25 attendees. You later stated your facility only accommodates approximately 15
people and that approximately 10 individuals attend your services. You later

Letter 4036 (CG) (11-2011)
Catalog Number 47630W

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submitted a congregational directory, which included 12 individuals.

· You initially said you have regular services. Then you stated your services vary
with the Jewish calendar. The services are conducted on Jewish holidays and
on special occasions and events.

· You were unable to provide any literature concerning your services such as
flyers, announcements or advertisements.

· You spent thousands of dollars on educational materials but there is no evidence
in the file you conduct an educational program. You did not provide copies of any
educational materials.

· You were unable to submit documentation concerning your expenses and use of
your debit card.

· You share a phone number with G, another congregation. You later explained
this was to save money.

As shown above, on multiple occasions, you provided inconsistent information. As a
result, we cannot consider the administrative record complete and subsequently your
failure to disclose material facts demonstrate your failure to substantiate your operations
further exempt purposes.

You have not provided sufficient information to show you meet the provisions in
American Guidance Foundation, because you have not submitted consistent details
showing you have a body of believers that assemble regularly in order to worship in an
established location. You have not established your services are reasonably available to
the public in the conduct of worship, in your educational instruction, and in your
promulgation of doctrine. For example, you initially said you have regular services.
Then you stated your services vary with the Jewish calendar and they are conducted on
Jewish holidays and on special occasions and events. You were unable to provide any
literature concerning your services such as flyers, announcements or advertisements.
You initially said you have 15 members of your congregation, but that you have 25
attendees. You later stated your facility only accommodates approximately 15 people
and that approximately 10 individuals attend your services. You subsequently
submitted a congregational directory, which included 12 individuals. You have received
no donations from your members. It is unclear from your responses that you have an
established and regular body of worshipers. Your lack of or inconsistency of information
has not conclusively demonstrated the existence of the basic tenets required for
obtaining status as a church, regular worship services conducted at a regular location
with a regular congregation.

Like the organization in Bubbling Well Church of Universal Love, you have given vague
and uninformative answers to our inquiries. Moreover, you have not provided a candid
disclosure of all facts about your operations and finances to assure us there is no abuse
of the revenue laws. Because you have not been forthcoming in your responses, the
logical inference as stated in this court case would show that you fail to meet the

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requirements of Section 501(c)(3).

You are like the organization in Basic Unit Ministry of Alma Karl Schurig v.
Commissioner, because you have not openly disclosed all facts on your operations and
finances to demonstrate that you qualify for exemption. You did not proffer sufficiently
detailed evidence of your operations and you continually responded in a vague and
uninformative manner.

You are similar to the organization in National Association of American Churches,
because you have not provided sufficient information for the Service to make an
informed decision. You have not responded to questions completely and consistently.
Moreover, we asked the same questions multiple times and continually received little or
inconsistent details regarding your operations.

You are similar to the organization in Peoples Prize v. Commissioner, because you
have only provided generalizations and inconsistencies to our repeated requests.
Therefore, like this organization you have failed to establish exemption.

## Alternate Issue

If upon appeal you are granted exemption under Section 501(c)(3), you should not be
classified as a church because you have failed to establish qualification as a church.

As in American Guidance Foundation, supra, you do not meet several of the 14 points
of a church to qualify under sections 509(a)(1) and 170(b)(1)(A)(i). While it is not
necessary to meet all 14 points, some of the points weigh more heavily. These points
include:

· A membership not associated with any other church or Denomination

· Established places of worship

· Regular religious services

Based on your membership information you have provided, it is not clear if your
members are associated with you at all. You initially said you have 15 members of your
congregation, but that you have 25 attendees. You later stated your facility only
accommodates approximately 15 people and that approximately 10 individuals attend
your services. You subsequently submitted a congregational directory, which included
12 individuals consisting of your Rabbi, your 3 board members, and the 2 tenants in
your building. You have received no donations from your members. You were unable to
provide any literature such as flyers and brochures. Moreover, it is not clear how a
member of the public would become aware of your activities. You do not have pictures
showing your name above your door indicating that you are conducting services. You
have no flyers or brochures. It is also not clear that your activities are separate and

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distinct from other congregations. You even share a phone number with G the owner of
your facility and another congregation. It is also not clear if you are conducting regular
services because you indicated services are conducted "as needed." Finally, C has a
synagogue in his home.

### Applicant's Position

You assert that you have met the numerous test/guidelines as promulgated and
discussed by the courts, the Internal Revenue Code, the Internal Revenue Code
Regulations, and IRS guidelines. The religious services that you conduct for worship as
needed by your members qualify for 170(b)(1)(A)(i). It along with the satisfaction of all
the other guidelines, tests, and benchmarks to be classified as a church/synagogue.
There is no requirement in the Internal Revenue Code, in the Regulations, in the
Revenue Rulings, or in any other IRS ruling that worship services be conducted 24/7
around the clock, every day of the year. This organization does conduct its worship
religious services as needed by its parishioners and worshipers.

### Service's Response to Applicant's Position

You have consistently failed to provide the specific information that we have requested.
We agree with your assertion that there is no ruling or regulation that asserts that
worship services be conducted 24/7 around the clock. You conduct religious services
as needed and have failed to establish that "as needed" equates to regular services.
However, the information you have provided throughout the processing of your Form
1023 application was often contradictory with other information you previously provided.
You are unable to provide basic information regarding the details of your operations.
Your financial statements reflect unsubstantiated numerous expenses. Your only
contributions have been from non-members, which is unusual for an operational
congregation. Your responses to our requests for more information and clarifications
were so vague and widely inconsistent that we are unable to determine that you are
operating exclusively for 501(c)(3) purposes. Similar to the organization in Harding
Hospital, Inc. v. United States, 505 F2d 1068 (1974), you have the burden of proving
that you satisfy the requirements for tax exemption. You have failed to provide enough
information to prove to us that you are not operating for private interests.

### Conclusion

Based on the above facts and law, we conclude that you do not qualify for exemption
under section 501(c)(3) of the Code. Your responses to our inquiries were vague and
uninformative. Therefore, you have failed to meet your burden of positively
demonstrating that you qualify for exemption under Section 501(c)(3) of the Code.
Based on the widely inconsistent information you have submitted over the course of the
development of your application, we are unable to conclude that you are operating

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exclusively for 501(c)(3) purposes. Therefore, you fail the operational test, and are
disqualified from exemption under Section 501(c)(3) of the Code.

### Conclusion Regarding Alternative Issue

The information you have provided about your operation of a house of worship is vague
and, at times, contradictory. If, upon appeal, you were found to qualify for exemption,
you do not meet the minimum requirements to be classified as a church under Sections
509(a)(1) and also170(b)(1)(A)(i).

You have the right to file a protest if you believe this determination is incorrect. To
protest, you must submit a protest statement explaining your views and reasoning. You
must submit the protest statement, signed by one of your officers, within 30 days from
the date of this letter. We will consider your statement and decide if the information
affects our determination. If your protest statement does not provide a basis to
reconsider our determination, we will forward your case to our Appeals Office. You can
find more information about the role of the Appeals Office in Publication 892.

Types of information that should be included in your protest statement can be found in
Publication 892. The protest statement must be accompanied by the following
declaration:

"Under penalties of perjury, I declare that I have examined this protest statement,
including accompanying documents and to the best of my knowledge and belief, the
statement contains all relevant facts and such facts are true, correct, and complete."

Your protest will be considered incomplete without this statement.

If an organization's representative submits the protest, a substitute declaration must be
included stating that the representative prepared the protest and accompanying
documents; and whether the representative knows personally that the statements of
facts contained in the protest and accompanying documents are true and correct.

An attorney, certified public accountant, or an individual enrolled to practice before the
Internal Revenue Service may represent you during the appeal process. If you want
representation during the appeal process, you must file a proper power of attorney,
Form 2848, Power of Attorney and Declaration of Representative, if you have not
already done so. You can find more information about representation in Publication
947, Practice Before the IRS and Power of Attorney. All forms and publications
mentioned in this letter can be found at www.irs.gov, Forms and Publications.

If you do not file a protest within 30 days, you will not be able to file a suit for declaratory
judgment in court because the Internal Revenue Service (IRS) will consider the failure

Letter 4036 (CG) (11-2011)
Catalog Number 47630W

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to appeal as a failure to exhaust available administrative remedies. Code section
7428(b)(2) provides, in part, that a declaratory judgment or decree shall not be issued in
any proceeding unless the Tax Court, the United States Court of Federal Claims, or the
District Court of the United States for the District of Columbia determines that the
organization involved has exhausted all of the administrative remedies available to it
within the IRS.

If you do not intend to protest this determination, you do not need to take any further
action. If we do not hear from you within 30 days, we will issue a final adverse
determination letter. That letter will provide information about filing tax returns and other
matters.

Please send your protest statement, Form 2848, and any supporting documents to the
applicable address:

Mail to:

Deliver to:

Internal Revenue Service

Internal Revenue Service

EO Determinations Quality Assurance

EO Determinations Quality Assurance

Room 7-008

550 Main Street, Room 7-008

P.O. Box 2508

Cincinnati, OH 45202

Cincinnati, OH 45201

You may fax your statement using the fax number shown in the heading of this letter. If
you fax your statement, please call the person identified in the heading of this letter to
confirm that he or she received your fax.

We've sent a copy of this letter to your representative as indicated in your power of
attorney.

If you have any questions, please contact the person whose name and telephone
number are shown in the heading of this letter.

Sincerely,

Acting Director, Exempt Organizations

Enclosure: Publication 892
Letter 4036 (CG) (11-2011)
Catalog Number 47630W