Exempt status revoked, but not denied
November 29, 2016
Exempt status revoked, but not denied. A volunteer fire department provided fire protection, ambulance and rescue services to the community. It declared itself tax exempt under Code Sec. 501(c)(5) for labor, agricultural or horticultural organizations. After the department filed a Form 990, “Return of Organization Exempt From Income Tax,” the IRS revoked its exempt status, saying it didn’t qualify as a 501(c)(5). In Private Letter Ruling 201646007, the IRS noted that it could qualify as exempt as a social welfare organization 501(c)(4) or a charity, 501(c)(3).