Internal Revenue Service
Revenue Ruling
Rev. Rul. 67-390
1967-2 C.B. 179
Sec. 501
IRS Headnote
Requirement for new applications for exemption from Federal income tax in
case of a change in the structure of organizations exempt from Federal
income tax under section 501(a) of the Internal Revenue Code of 1954.
Full Text
Rev. Rul. 67-390
The Internal Revenue Service has been asked whether new applications for
exemption are required in four cases where changes were made in the
structure of organizations which previously had been held exempt from
Federal income tax under section 501(a) of the Internal Revenue Code of
1954 or a counterpart provision of prior law.
Case 1 . An exempt trust was reorganized and adopted a corporate form to
carry out the same purposes for which the trust had been established. Its
operations were not changed.
Case 2 . An exempt unincorporated association was incorporated and
continued the operations which had qualified it for exemption.
Case 3 . An exempt organization incorporated under state law was
reincorporated by an Act of Congress to carry out the same purposes
contained in the state charter.
Case 4 . An exempt organization incorporated under the laws of one state
was reincorporated under the laws of another state with no change in its
purposes.
Section 1.501(a)-1(a)(2) of the Income Tax Regulations requires that, in
order to establish exemption, an organization must file an appropriate
application form with the District Director for the internal revenue
district in which is located the principal place of business or principal
office of the organization. Rulings or determination letters holding
organizations exempt are effective so long as there are no material changes
in the organization's character, purposes, or methods of operation.
In each of the four cases described above a new legal entity has been
created. Each new entity must establish its exemption in accordance with
the regulations set forth above. Accordingly, each of the above
organizations must file an application for exemption to establish that the
new entity qualifies for exemption under the Code and applicable
regulations.
