Rev. Proc. 76-33

Section 1. Purpose.

This Revenue Procedure sets forth the general appeal procedures with regard to adverse determination letters issued with respect to applications for recognition of exemption from Federal income tax under section 501 or 521 of the Internal Revenue Code of 1954, and with respect to revocation or modification of exemption rulings and determination letters, other than those subject to Rev. Proc. 72-6, 1972-1 C.B. 710 (relating to pension, annuity, profit-sharing, and stock bonus plans). It also lists the 19 key Internal Revenue district offices that handle exempt organization matters.

Sec. 2. Background.

The general instructions for processing applications for recognition of exemption under section 501 or 521 of the Code and for revoking or modifying exemption rulings and determination letters are contained in Rev. Proc. 72-4, 1972-1 C.B. 706.

Sec. 3. Filing and Processing Applications for Recognition of Exemption.

An organization seeking recognition of exempt status under section 501 or section 521 of the Code is required to file an application with the key District Director for the Internal Revenue District in which is located the principal place of business or principal office of the organization. Following are the 19 key district offices that process the applications, the Internal Revenue districts covered by each, and the regional office designations:

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.01 Upon the issuance of an adverse determination letter or a letter proposing revocation or modification of exempt status, the key District Director will advise the organization of its right to protest the determination by requesting regional office consideration. To do this, the organization must submit to the key District Director within 30 days from the date of the letter, a statement of the facts, law, and arguments in support of its position. The organization must also state whether it wishes a regional office conference.

.02 Any determination letter that is issued on the basis of National Office technical advice may not, thereafter, be appealed to the regional or National Offices of the Internal Revenue Service with regard to those issues that were the subject of technical advice.

.03 Upon receipt of an organization's request for regional office consideration, the key District will, if it maintains its position, forward the request and the case file to the Office of the Assistant Regional Commissioner (Employee Plans and Exempt Organizations).

Sec. 5. Consideration at Regional Office.

.01 If the regional office, after considering the organization's protest and any additional information developed, disagrees with the key District Director's determination, the regional office will so advise the taxpayer and the case will be returned to the key District Director for appropriate action.

.02 If the regional office, after considering the organization's protest and any information developed, agrees with the key District Director, it will so notify the organization in writing, explaining the reasons therefor and advising the organization that it may, within 30 days from the date of the notification, request National Office consideration (as described in Sec. 6 below). If the organization does not do so within the prescribed time, the case will be returned to the key District Director for issuance of a final determination letter.

.03 Organizations should make full presentation of the facts, circumstances, and arguments at the initial level of consideration, since submission of additional facts, circumstances, and arguments at any level of appeal may result in suspension of appeal procedures and referral of the case back to the key district for additional consideration.

Sec. 6. Reference of Matters to the National Office.

.01 If the organization wishes to request National Office consideration, it must submit within 30 days to the Regional Office a request for such consideration. The request must state with supporting argument, the ground(s) upon which the request is based (see Sec. 6.02) and whether a conference is desired in the National Office. Upon receipt of the request, the regional office will forward the request and the case file to the National Office in care of the Assistant Commissioner (Employee Plans and Exempt Organizations) E:EO:T (or Assistant Commissioner (Technical) T:C:C in section 521 cases) and will notify the organization of this action.

.02 Upon receipt of the case file in the National Office, a decision will be made whether to accept the case for consideration and the organization will be advised of this decision. The National Office will not accept a case unless the organization can show that the position of the regional office is contrary to the statute, Treasury decision or regulations, or a ruling, opinion or court decision published in the Internal Revenue Bulletin; that the position of the Regional Office is in conflict with the determination made in a similar case in the same or another region; or that the case presents a substantial issue not covered by published precedent. If the National Office decides that the case will be accepted, and if an adverse decision is indicated. the organization will be afforded the opportunity of a conference if one was requested. After consideration by the National Office, the National Office will notify the organization of its decision, and the case file will be returned through the regional office to the key District office for issuance of a final determination letter in accordance with the National Office decision.

.03 If the National Office decides not to accept the case, the case file will be returned through the Regional Office to the key District Director for issuance of a final determination letter.

Sec. 7. Effect on Other Documents.

Sec. 3, Filing Applications for Recognition of Exemption, Sec. 4, Processing Applications for Recognition of Exemption, Sec. 10, Protest of Adverse Determination Letters, and Sec. 11.02, .03, .04, .05, and .06, Revocation or Modification of Rulings or Determination Letters Recognizing Exemption, of Rev. Proc. 72-4, are hereby superseded.

Sec. 8. Effective Date.

This Revenue Procedure is effective September 27, 1976, the date of its publication in the Internal Revenue Bulletin.