IRS Published Taxpayer Determination Letter 202610018

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:

12/11/2025

Employer ID number:

Form you must file:

Tax years:

Release Number: 202610018

Release Date: 3/6/26
UIL Code: 501.06-00. 501.06-01

Person to contact:
Name:

ID number:

Telephone:

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)(6). 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.

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.

Sincerely.

Stephen A. Martin
Director. Exempt Organizations
Rulings and Agreements

Enclosures:
Letter 437
Redacted Letter 4034
Redacted Letter 4038

LYA
IRS

Department of the Treasury
Internal Revenue Service

Date:

10/20/2025

Employer ID number:

Person to contact:

Name:

ID number:

Telephone:

Fax:

Legend:
B = State

C = Date

D = Date

E = Namc

F = Address
G = Range
h dollars = Dollars

UIL:

501.06-00

501.06-01

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)(6).
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)(6)? No, for the reasons stated below.

Facts

You are a mutual benefit corporation incorporated in B on C. You amended your Articles of Incorporation on
D. Your amended Articles of Incorporation state that your corporation is an association formed to manage a
common interest development under the Commercial and Industrial Common Interest Development Act.

Your primary activity is to manage your business condominium common areas and address any owner issues.
You are a commercial owners' association and a nonprofit corporation that governs E, located at F, in which the
commercial units are owned and used for non-residential purposes. Your board collects fees to pay community
area expenses every year.

You will not restrict your membership to individuals, firms, associations, and/or corporations, each representing
a different trade, business, occupation, or profession, and organized for the purpose of exchanging information
on business prospects. You will not market a specific product or brand within an industry. You will not limit

your activities to users of a specific product within an industry and you will not operate a listing or referral
system.

Your primary function is to manage the day-to-day requirements of keeping the building and common areas
functional, while caring for and managing the building and common areas for the benefit of the commercial
condominium owners and tenants. You also make improvements as needed and as requested by the
condominium owners.

You charge monthly dues of h dollars, which is determined by a vote of your board members. The fees
collected pay the community area expenses every year. You stated the activity furthers your exempt purpose
because the association cares for the common areas for the benefit of the owners in the condominium without a
goal of monetary profits and that all your board members are volunteers who are working without pay.

Your members common business interest is that the members require a functioning building, adequate common
area maintenance, and management. You promote the members common business interest by managing the day-
to-day requirements of keeping the building and common arcas functional ..

You will provide services for members by managing the building and common areas. For the benefit of the
commercial condominium owners and tenants.

Your assets will be distributed according to Corporations Code Sections G, as amended in the event the
association dissolves.

## Law

Section 501(c)(6) IRC Section 501(c)(6) exempts from federal income tax business leagues, chambers of
commerce, real estate boards, boards of trade, and professional football leagues (whether or not administering a
pension fund for football players), which are not organized for profit and no part of the net earnings of which
inures to the benefit of any private shareholder or individual.

Treasury Regulation 1.501(c)(6)-1 states that a business league is an association of persons having some
common business interest, the purpose of which is to promote such common interest and not to engage in a
regular business of a kind ordinarily carried on for profit. It is an organization of the same general class as a
chamber of commerce or board of trade. Thus, its activities should be directed to the improvement of business
conditions of one or more lines of business as distinguished from the performance of particular services for
individual persons. An organization whose purpose is to engage in a regular business of a kind ordinarily
carried on for profit, even though the business is conducted on a cooperative basis or produces only sufficient
income to be self-sustaining, is not a business league.

Revenue Ruling 59-391, 1959-2 C.B. 151, held that an organization composed of individuals, firms,
associations and corporations, cach representing a different trade, business, occupation or profession whose
purpose is to exchange information on business prospects has no common business interest other than a mutual
desire to increase their individual sales. The activities are not directed to the improvement of one or more lines
of business, but rather to the promotion of the private interests of its members and is not exempt under section
501(c)(6) of the code.

Rev. Rul. 68-264, 1968 1 C.B. 264 defines a particular service for the purposes of section 501(c)(6) the Code as
being activity that serves as a convenience or economy to the members of the organization in the operation of
their businesses. Activities that constitute the performance of particular services for individual persons may
preclude exemption from Federal income tax under section 501(c)(6) of the Code. Therefore, for this further
reason, the organization is not exempt from Federal income tax under section 501(c)(6) of the Code.

Rev. Rul. 73-411, 1973-2 C.B. 180, describes an organization that was not structured along industry or business
lines but was composed of various types of businesses and commercial endeavors comprising a shopping center.
Therefore, its right to exemption, if any, had to rest on its characterization as a chamber of commerce or board
of trade or similar organization. The revenue ruling further indicates that chambers of commerce and boards of
trade direct their efforts at promoting the common economic interests of all the commercial enterprises in a
given trade community. In the case of a chamber of commerce or similar organizations, the common business
interest is usually the general economic welfare of a community. Membership is voluntary and open generally
to all business and professionals in the community.

In Indiana Retail Hardware Ass'n., Inc, V. United States, 117 Ct. CI. 288 (1966), the court held that when
conducting particular services for members is a substantial activity of an organization, the organization will be
precluded from exemption under IRC Section 501(c)(6).

## Application of law

You are not organized and operated exclusively for purposes within the meaning of IRC Section 501(c)(6)
because you are not operating a business league, chambers of commerce, real estate board, board of trade, or a
professional football league. You also have the net earnings of the organization inuring to the benefit of private
shareholder or individuals because you stated that you perform or will perform the following services for you
members or others: Care for and manage the building and common areas for the benefit of the commercial
condominium owners and tenants.

You do not meet the requirements of Treas. Reg. 1.501(c)(6)-1 because you are not operated for exempt
purposes. Your activities are not directed to the improvement of business conditions of one or more lines of
business. Your activities are the performance of particular services for individual persons. You provide services
to your members to manage the day-to-day requirements of keeping the building and common areas functional.
You also make improvements as needed and as requested by the condo owners.

You are similar to the organization described in Rev. Rul. 59-391 and Rev. Rul. 68-264 because you are
performing a particular service that serves individual persons of the organization in the operation of their
businesses. You care for and manage the building and common areas for the benefit of the commercial
condominium owners and tenants. You also make improvements as needed and as requested by the condo
owners. These activities constitute the performance of particular services for individual persons and preclude
exemption under Section 501(c)(6).

Like the organization in Rev. Rul. 73-411, you are not structured along any particular industry or business lines.
You are composed of various types of businesses. Therefore, to meet exemption under IRC Section 501(c)(6),
you must depend on being characterized as a chamber of commerce. Because your membership is not open to
all businesses in your community but only to businesses in E, you do not meet the definition of a chamber of
commerce within the meaning of Section 501(c)(6) as explained in this revenue ruling.

Like the organization in Indiana Retail Hardware Assn. Inc., your activities do not improve the business
conditions of one or more lines of business or business conditions of any community as a whole. Instead, you
serve the private interests of your members.

## Conclusion

The activities you are conducting do not qualify for exemption under 501(c)(6). These activities are not for the
improvement of business conditions of one or more lines of business as distinguished from the performance of
particular services for individual persons. You engage in activities that are primarily for the performance of
particular services for the members of the organization.

## 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
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 scek 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

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 frec, 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

IRS Published Taxpayer Determination Letter 202610018

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