The Tax Law Group, the Law Offices located in Washington, D.C. provide advice and assistance to those who consider to assets transfers.  Every client's situation is very different and sometimes unique.  However, the application of the law to every particular situation has some similarities.  We encourage those who contemplate that avenue to seek early legal advice.
Exempt Organizations - Rulings and Determinations Letters
A ruling or determination letter will be issued to your organization if its application and supporting documents establish that it meets the particular requirements of the section under which it is claiming exemption. However, the IRS will not ordinarily issue rulings or determination letters recognizing exemption if an issue involving the organization's exempt status is pending in litigation or is under consideration within the IRS.


Advance Ruling: A ruling or determination letter may be issued in advance of operations if your organization can describe its proposed operations in enough detail to permit a conclusion that it will clearly meet the particular requirements of the section under which it is claiming exemption. A restatement of the organization's purpose or a statement that it will be operated in furtherance of that purpose will not satisfy this requirement. The organization must describe fully the activities in which it expects to engage. This includes standards, procedures, or other means adopted or planned by the organization for carrying out its activities, expected sources of funds, and the nature of its contemplated expenses.

When an organization does not supply the information mentioned above, or fails to furnish a sufficiently detailed description of its proposed activities to permit a conclusion that it will clearly be exempt, a record of actual operations may be required before a ruling or determination letter is issued.

Newly-created section 501(c)(3) organizations may receive an advance ruling that they will be publicly supported organizations, and therefore not private foundations, if they meet certain requirements.

Adverse Determination:  If an organization is unable to describe fully its purposes and activities, resulting in a refusal by the IRS to issue a ruling or determination letter, that refusal is considered an adverse determination, which the organization can appeal.
Public Disclosure: An exemption determination letter is subject to public disclosure.



Assets Transfers
Extent to which transferee foundation succeeds to combined tax benefit of transferor
A transferee organization will succeed to the combined tax benefit of the transferor organiza­tion to the extent of the combined tax benefit multiplied by a fraction.  The numerator of the fraction is the fair market value of the assets (minus encumbrances) transferred, and the de­nominator is the fair market value of the total assets of the transferor (minus encumbrances) immediately before the transfer.  Fair market value is determined as of the time of the transfer.  A transferee organization not effectively con­trolled, directly or indirectly, by the same person or persons who control the transferor organiza­tion will not succeed to a combined tax benefit greater than the fair market value of assets transferred at the time of the transfer.

Disclaimer:  This website quotes certain documents of the United States Citizenship and Immigration Service and of the U.S. State Department, to which the credit and copyright belongs.  The quotations of these documents in the public domain  are usually referring to the particular documentary sources.