IRS memo for TE/GE division; interim guidance on 9100 relief for exemption applications
IRS memo for TE/GE division; interim guidance
The IRS released a memorandum as interim guidance for personnel in the Tax Exempt and Government Entities (TE/GE) division regarding Reg. section 301.9100-3 relief (“9100 relief”) for applications for exemption.
Read the memo: TEGE-07-0321-0005 [PDF 167 KB] (March 17, 2021) Interim Guidance on Treasury Regulation Section 301.9100-3 Relief for Applications for Exemption
The TE/GE memo explains that under Rev. Proc. 2021-5, for applications for exemption submitted on or after January 4, 2021, TE/GE personnel are to apply the following procedures as they consider relief requests:
- EO Determinations will not grant 9100 relief if that would result in the organization’s exemption being automatically revoked effective before the date of application.
- EO Determinations will not grant 9100 relief if the period of limitations on assessment under section 6501(a) for any tax year for which the organization claims exemption has expired prior to the date of application.
- EO Determinations will not consider relief for an organization that is not required to apply for recognition of exempt status in order to be tax-exempt.
- In all instances when the request for exemption is being approved but 9100 relief is not being granted, a correct determination letter is to be prepared and sent along with Letter 6392, 9100 Effective Date.
- EO Determinations will no longer process cases when 9100 relief is not granted as proposed adverse determinations or proposed approvals with an adverse issue.
TE/GE personnel are directed to request information, as necessary, to determine whether to grant 9100 relief to an organization that requests consideration in its application, and to secure a manager’s agreement as to whether to grant relief and document managerial concurrence of approval or denial.
For more information, contact a tax professional with KPMG’s Washington National Tax practice:
Ruth Madrigal | +1 202 533 8817 | firstname.lastname@example.org
Preston Quesenberry | +1 202 533 3985 | email@example.com
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.