IRS Published Taxpayer Determination Letter 202607023

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.

Department of the Treasury
Internal Revenue Service
Tax Exempt and Government Entities

IRS

Date:
11/18/2025

Employer ID number:

Form you must file:

Tax years:

Person to contact:

Release Number: 202607023

Release Date: 2/13/2026

UIL Code: 501.00-00, 501.03-00, 501.03-30, 501.35-00

Dear
:

This letter is our final determination that you don't qualify for exemption from federal income tax under Internal
Revenue Code (IRC) Section 501(a) as an organization described in IRC Section 501(c)(3). Recently, we sent
you a proposed adverse determination in response to your application. The proposed adverse determination
explained the facts, law, and basis for our conclusion, and it gave you 30 days to file a protest. Because we
didn't receive a protest within the required 30 days. the proposed determination is now final.

Because you don't qualify as a tax-exempt organization under IRC Section 501(c)(3), donors generally can't
deduct contributions to you under IRC Section 170.

We may notify the appropriate state officials of our determination. as required by IRC Section 6104(c), by
sending them a copy of this final letter along with the proposed determination letter.

You must file the federal income tax forms for the tax years shown above within 30 days from the date of this
letter unless you request an extension of time to file. For further instructions, forms, and information, visit
www.irs.gov.

We'll make this final adverse determination letter and the proposed adverse determination letter available for
public inspection after deleting certain identifying information, as required by IRC Section 6110. Read the
enclosed Letter 437, Notice of Intention to Disclose - Rulings. and review the two attached letters that show our
proposed deletions. If you disagree with our proposed deletions, follow the instructions in the Letter 437 on how
to notify us. If you agree with our deletions, you don't need to take any further action.

If you have questions about this letter, you can call the contact person shown above. If you have questions
about your federal income tax status and responsibilities, call our customer service number at 800-829-1040
(TTY 800-829-4933 for deaf or hard of hearing) or customer service for businesses at 800-829-4933.

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Enclosures:
Letter 437
Redacted Letter 4034
Letter 4038

Sincerely,
Stephen A. Martin
Director, Exempt Organizations
Rulings and Agreements

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AYA
IRS

Department of the Treasury
Internal Revenue Service

Date:
10/01/2025

Employer ID number:

Person to contact:

Name:

ID number:

Telephone:

Fax:

Legend:

UIL:
501.00-00

B = Date

C = State
501.03-00

D = Company
x percent = percentage

501.03-30

501.35-00

Dear
:

We considered your application for recognition of exemption from federal income tax under Internal Revenue
Code (IRC) Section 501(a). We determined that you don't qualify for exemption under IRC Section 501(c)(3).
This letter explains the reasons for our conclusion. Please keep it for your records.

Issues

Do you qualify for exemption under IRC Section 501(c)(3)? No, for the reasons stated below.

Facts

You submitted Form 1023-EZ, Streamline Application for Recognition of Exemption Under Section 501(c)(3)
of the Internal Revenue Code.

You attest that you were incorporated on B, in the state of C. You attest that you have the necessary organizing
document, that your organizing document limits your purposes to one or more exempt purposes within the
meaning of the IRC Section 501(c)(3), that your organizing document does not expressly empower you to
engage in activities, other than an insubstantial part, that are not in furtherance of one or more exempt purposes,
and that your organizing document contains the dissolution provision required under Section 501(c)(3).

You attest that you are organized and operated exclusively to further charitable purposes. You attest that you
have not conducted and will not conduct prohibited activities under IRC Section 501(c)(3). Specifically, you
attest you will:

· Refrain from supporting or opposing candidates in political campaigns in any way

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· Ensure that your net earnings do not inure in whole or in part to the benefit of private shareholders or
individuals

· Not further non-exempt purposes (such as purposes that benefit private interests) more than
insubstantially

· Not be organized or operated for the primary purpose of conducting a trade or business that is not related
to your exempt purpose(s)

· Not devote more than an insubstantial part of your activities attempting to influence legislation or, if you
made a Section 501(h) election, not normally make expenditures in excess of expenditure limitations
outlined in Section 501(h)

· Not provide commercial-type insurance as a substantial part of your activities

Your mission on the Form 1023-EZ states, "We create and provide open-source software tools and patches for
mobile apps, empowering users to enhance functionality, privacy, and control over their digital tools,
contributing to a community-driven, accessible software ecosystem."

After reviewing your application, we sent a request for additional information regarding your activities.

Your articles state you are a nonprofit organization dedicated to the development, maintenance, and promotion
of open-source software for public use.

You explained that x percent of time is dedicated to software development and x percent is dedicated to
maintaining and supporting services. Your primary focus is developing tools and patches for D applications.
You have main open source projects all for D applications. Users can use these patches to introduce new
features, remove undesired functionality, or modify app user's interface. Users are any individual or outside
corporation that chooses to use the software in whatever project they wish. The software is primarily used by
individuals who want to enhance or modify the behavior of their D apps. Organizations, especially those
interested in mobile app research, may also benefit by customizing apps to fit specific needs. All source code is
publicly available, anyone can access, use, and contribute to the software. Contractors are compensated as
software developers based on industry-standard salaries. Revenue is expected from "user donations" and
expenses will include hosting and infrastructure, subscriptions for services, administrative expenses, software
expenses, and future contractor compensation (software developers). The Board of Directors consists of a single
member who is related to the software industry (pursuing a professional career in software development). He
will be compensated if budgets allow.

# Law

IRC Section 501(c)(3) provides for the exemption from federal income tax of organizations organized and
operated exclusively for religious, charitable, or other purposes as specified in the statute. No part of the net
earnings may inure to the benefit of any private shareholder or individual.

Treasury Regulation Section 1.501(c)(3)-1(a)(1) states that in order to qualify under IRC Section 501(c)(3), 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 or operational test, it is not exempt.

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Treas. Reg. Section 1.501(c)(3)-1(b)(1)(i) provides that an organization is organized exclusively for one or
more exempt purposes only if its articles of organization limit the purposes of such organization to one or
more exempt purposes; and do not expressly empower the organization to engage, otherwise than as an
insubstantial part of its activities, in activities which in themselves are not in furtherance of one or more
exempt purposes.

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

Treas. Reg. Section 1.501(c)(3)-1(d)(2) provides the term "charitable" is used in IRC Section 501(c)(3) in its
generally accepted legal sense and includes relieving the poor and distressed or the underprivileged, combating
community deterioration, lessening neighborhood tensions, and eliminating prejudice and discrimination.

Treas. Reg. Section 1.501(c)(3)-1(d)(3)(i) provides that the term "educational," as used in IRC Section
501(c)(3), relates to the instruction or training of the individual for the purpose of improving or developing his
capabilities or the instruction of the public on subjects useful to the individual and beneficial to the
community.

In Revenue Ruling 71-504, 1971-2 C.B. 231, a city medical society exempt under IRC Section 501(c)(6), that
primarily directs its activities to the promotion of the common business purposes of its members may not be
reclassified as an educational or charitable organization under Section 501(c)(3). The society was created for
the purpose of promoting the art of medicine, the betterment of public health, and the unity, harmony, and
welfare of members of the medical profession. Membership is open to all doctors in the community. Activities
included presentations on new procedures and clinical care, an extensive library of medical books for use by
members, a monthly medical journal, supporting medical education and local health programs, a patient
referral service for members, meetings concerned with matters affecting the promotion and practice of
medicine and enhancing and improving the public image of the medical profession. While some of the
society's activities are charitable or educational, several are instead directed primarily at the promotion of the
medical profession and thus further the common business purposes of its members.

In Better Business Bureau of Washington, D.C., Inc. v. United States, 326 U.S. 279 (1945), the Supreme Court
of the United States interpreted the requirement in IRC Section 501(c)(3) that an organization be "operated
exclusively" by indicating that an organization must be devoted to exempt purposes exclusively. The presence
of a single non-exempt purpose, if more than insubstantial in nature, will destroy the exemption regardless of
the number and importance of truly exempt purposes.

Application of law

IRC Section 501(c)(3) sets forth two main tests for qualification of exempt status. Per Treas. Reg. Section
1.501(c)(3)-1(a)(1), an organization must be both organized and operated exclusively for purposes described in
Section 501(c)(3).

You do not meet the organizational test of Treas. Reg. Section 1.501(c)(3)-1(b)(1)(i). Your organizing
document contains a broad purpose statement that does not limit your purposes to one or more exempt

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purposes.

You do not meet the operational test of Treas. Reg. Section 1.501(c)(3)-1(a)(1). You are not operating
"exclusively" for exempt purposes as required by Treas. Reg. Section 1.501(c)(3)-1(c)(1). Creating,
maintaining, and providing open source software for anyone to use for any purpose constitutes a substantial,
non-exempt purpose. Your open source software activity is not limited for charitable purposes or to a
charitable class. Your open source software activities are not charitable per Treas. Reg. Section 1.501(c)(3)-
1(d)(2) or educational per Treas. Reg. Section 1.501(c)(3)-1(d)(3)(i).

Like the organization in Rev. Rul. 71-504, some of your activities may be considered educational or
charitable. However, a substantial portion of your activities involves the creation, maintenance, and provision
of open source software (available for any individual or organization to use for any purpose) which does not
further "exclusively" exempt purposes. Thus, like the organization in Better Business Bureau of Washington,
D.C., Inc., you have a substantial non-exempt purpose that destroys exemption regardless of the number and
importance of truly exempt purposes.

# Conclusion

Based on the information submitted, you do not qualify for exemption under IRC Section 501(c)(3). You do not
meet the organizational test because your articles do not limit your purposes to one or more exempt purposes.
You do not meet the operational test because you are operated for a substantial non-exempt purpose.

# If you agree

If you agree with our proposed adverse determination, you don't need to do anything. If we don't hear from
you within 30 days, we'll issue a final adverse determination letter. That letter will provide information on
your income tax filing requirements.

# If you don't agree

You have a right to protest if you don't agree with our proposed adverse determination. To do so, send us a
protest within 30 days of the date of this letter. You must include:

· Your name, address, employer identification number (EIN), and a daytime phone number

· A statement of the facts, law, and arguments supporting your position

· A statement indicating whether you are requesting an Appeals Office conference

· The signature of an officer, director, trustee, or other official who is authorized to sign for the
organization or your authorized representative

· The following declaration:

For an officer, director, trustee, or other official who is authorized to sign for the organization:
Under penalties of perjury, I declare that I have examined this request, or this modification to the
request, including accompanying documents, and to the best of my knowledge and belief, the request
or the modification contains all relevant facts relating to the request, and such facts are true, correct,
and complete.

Your representative (attorney, certified public accountant, or other individual enrolled to practice before the
IRS) must file a Form 2848, Power of Attorney and Declaration of Representative, with us if they haven't

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already done so. You can find more information about representation in Publication 947, Practice Before the
IRS and Power of Attorney.

We'll review your protest statement and decide if you gave us a basis to reconsider our determination. If so,
we'll continue to process your case considering the information you provided. If you haven't given us a basis
for reconsideration, we'll send your case to the Appeals Office and notify you. You can find more information
in Publication 892, How to Appeal an IRS Determination on Tax-Exempt Status.

If you don't file a protest within 30 days, you can't seek a declaratory judgment in court later because the
law requires that you use the IRC administrative process first (IRC Section 7428(b)(2)).

Where to send your protest
Send your protest, Form 2848, if applicable, and any supporting documents to the applicable address:

U.S. mail:

Street address for delivery service:

Internal Revenue Service

Internal Revenue Service

EO Determinations Quality Assurance

EO Determinations Quality Assurance

Mail Stop 6403

550 Main Street, Mail Stop 6403

PO Box 2508

Cincinnati, OH 45202

Cincinnati, OH 45201

You can also fax your protest and supporting documents to the fax number listed at the top of this letter. If you
fax your statement, please contact the person listed at the top of this letter to confirm that they received it.

You can get the forms and publications mentioned in this letter by visiting our website at www.irs.gov/forms-
pubs or by calling 800-TAX-FORM (800-829-3676). If you have questions, you can contact the person listed at
the top of this letter.

Contacting the Taxpayer Advocate Service

The Taxpayer Advocate Service (TAS) is an independent organization within the IRS that can help protect your
taxpayer rights. TAS can offer you help if your tax problem is causing a hardship, or if you've tried but haven't
been able to resolve your problem with the IRS. If you qualify for TAS assistance, which is always free, TAS
will do everything possible to help you. Visit www.taxpayeradvocate.irs.gov or call 877-777-4778.

Sincerely,

Stephen A. Martin
Director, Exempt Organizations
Rulings and Agreements

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