Chapter 14 - § 14.6 • EFFECT OF REMOVAL FROM EXEMPT ORGANIZATION SELECT CHECK AND REVOCATION OF DETERMINATION LETTER ON CONTRIBUTIONS TO I.R.C. § 501(C)(3) ORGANIZATIONS

• Jurisdiction: Colorado

§ 14.6 • EFFECT OF REMOVAL FROM EXEMPT ORGANIZATION SELECT CHECK AND REVOCATION OF DETERMINATION LETTER ON CONTRIBUTIONS TO I.R.C. § 501(c)(3) ORGANIZATIONS

§ 14.6.1—Removal from Exempt Organization Select Check and Revocation of I.R.C. § 501(c)(3) Status

The revocation of an organization's determination letter by the IRS is not determinative of the deductibility of contributions to the organization under I.R.C. § 170. Instead, it is the listing of a § 501(c)(3) organization in the IRS' online Exempt Organization Select Check (EO Select Check) (which contains the information formerly maintained by the IRS in Publication 78) that is determinative of such deductibility. See IRS News Release 2012-34; www.irs.gov/charities-non-profits/exempt-organizations-select-check. When an organization ceases to qualify as a charitable donee for the purposes of I.R.C. § 170(c)(2) and the organization's determination letter is revoked, contributions made to the organization by persons unaware of the change in the organization's status generally continue to be deductible until the date of publication of an announcement in the Internal Revenue Bulletin that contributions are no longer deductible (i.e., effectively, removal from EO Select Check), or until a date specified in an IRS announcement where deductibility is terminated as of a different date. Treas. Reg. § 601.201(n)(3)(iii)(a).

The IRS has the administrative discretion to effectively revoke charitable donee status under I.R.C. § 170(c)(2) at any time, including during the course of an examination, by removing an organization from EO Select Check. See Rev. Proc. 2011-33, 2011-25 I.R.B. 887. Removal from EO Select Check is not a final determination that can be appealed for judicial review, or even appealed within the IRS. Id.; see also Founding Church of Scientology of Washington, D.C., Inc. v. United States, 26 Cl. Ct. 244, 92-1 U.S. Tax Cas. (CCH) ¶ 50,301 (1992) (court denied organization's declaratory judgment action that sought listing on Publication 78 because audit was in process and no final revocation determination had been made). The deductibility of contributions made after the date of a published announcement by the IRS revoking charitable donee status depends on whether the organization prevails in sustaining its status as a qualified donee organization under I.R.C. § 170(c). However, after the published announcement, the donor assumes the risk that contributions will not be deductible under I.R.C. § 170...