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The Service publishes a list of organizations eligible to receive contributions
that are deductible under IRC 170(c). This list, Publication 78,
Cumulative List of Organizations Described in Section 170(c) of the Internal
Revenue Code of 1986, is published annually and supplemented quarterly.

This Manual should be distributed to any person who has technical tax
duties concerning exempt organizations.

Within EO Rulings and Agreements, EO Determinations and EO Technical
are responsble for processing cases for tax exemption under IRC 501(c) and
521. EO Determinations issues determination letters on applications for recognition
of exemption and on the tax consequences of completed transactions. EO Technical
issues rulings on applications for recognition of exemption referred by EO
Determinations and (in response to requests by exempt organizations) on the
tax consequences of proposed transactions.

Rev. Proc. 90–27, 1990–1 C.B. 514, provides instructions
for submitting and processing applications for recognition of exemption.

Rev. Proc. 2003–4, 2003–1 I.R.B. 123, provides procedures
for furnishing rulings, determination letters, information letters, and other
forms of assistance to taxpayers on issues under the jurisdiction of the Commissioner
(T). This revenue procedure is updated annually and published in the first
issue of the Internal Revenue Bulletin each year.

IRC 6110 requires the IRS to make
“sanitized”
versions
of its written determinations (including private taxpayer rulings and technical
advice memorandums) publicly available. After issuance, rulings are sanitized
to delete all taxpayer identifying information and such matters as trade secrets,
assigned a nine-digit identification number, and made available for public
inspection in the Freedom of Information Act Reading Room.

Released determinations are assigned an index number or numbers from
the IRS Uniform Issue List system. For example, a determination under IRC
502 would be indexed through the Code finding list under IRC 502 and Uniform
Issue List number 0502.00–00.

Copies of released determinations are also available from commercial
tax services. In addition, they are available though electronic research services.

IRC 6110(k)(3) provides that published determinations may not be used
or cited as precedent.

Before the enactment of the Tax Reform Act of 1984 (part of the Deficit
Reduction Act of 1984, Public Law 98–369), IRC 501(c)(1) required that
a corporation’s federal tax exemption be authorized in the Act creating
the corporation. Further, the corporation would remain exempt only as long
as its exemption was consistent with the supplements and amendments to the
original Act. For corporations that obtained their exempt status before July
18, 1984, these requirements remain in effect.

Federal Savings and Loan Associations were exempt from tax under the
Home Owners’ Loan Act of 1933. However, section 313 of the Revenue Act
of 1951 repealed that exemption by amendment of section 5(h) of the 1933 Act,
with the result that for taxable years beginning after December 31, 1951,
such associations are not exempt.

Sections 1079 and 2813 of Public Law 98–369 substantially changed
the manner in which Congress allows exemption to corporations under IRC 501(c)(1).
In order for a corporation to establish IRC 501(c)(1) exemption on or after
July 18, 1984, Congress must specifically provide for the corporation’s
exemption in the Internal Revenue Code or in a non-Code provision of a Revenue
Act. In section 2813 of Public Law 98–369, Congress enacted IRC 501(I)
in which corporations receiving IRC 501(c)(1) exemption may be listed.

Some of the entities exempt from tax under IRC 501(c)(1) are:

Public Law 98–369 added IRC 501(I) to list those corporations
for which Congress provides IRC 501(c)(1) exemption within the Internal Revenue
Code. Exemption for the National Credit Union Central Liquidity Facility is
provided in IRC 501(I).

State and municipal instrumentalities are not exempt under section 501(c)(1),
which covers only instrumentalities of the United States.

Federal credit unions, organized and operated under the Federal Credit
Union Act, as amended, were held, in Rev. Rul. 89-94, 1989–2 C.B. 233,
to be instrumentalities of the United States and, therefore, exempt under
IRC 501(c)(1). Federal credit unions are included in a group exemption letter
issued to the National Credit Union Administration (NCUA), an independent
government agency. Pursuant to Rev. Rul. 89-94, the NCUA is excepted from
filing either an individual information return on Form 990 for itself or a
group information return for its subordinate organizations. However, the NCUA
does provide an annual report to the Ogden Campus, updating information about
its subordinate organizations, which are covered by the group exemption. Subordinate
organizations include federal credit unions under its supervision.

If a federal credit union files an application for recognition of exemption,
it should be advised that the matter is, or will be, handled by the NCUA in
its annual list of changes.

National farm loan association—The Revenue Act of 1951 revoked
the tax-exempt status of certain banks and building and loan associations
for taxable years beginning after December 31, 1951. Rev. Rul. 133, 1953–2
C.B. 155, clarified that this did not affect the exempt status of national
farm loan associations, which are still entitled to exemption under section
101(15) of the 1939 Code, predecessor to IRC 501(c)(1).

Rev. Rul. 56–93, 1956-1 C.B. 601, held that a reorganized railroad
company that issued all its first mortgage bonds and the majority of its shares
of common stock to the Reconstruction Finance Corporation in satisfaction
of a debt, but that also issued and set aside shares of its common stock for
subscription through warrants issued to private creditors, is not exempt from
federal income taxes.