INTERNAL REVENUE SERVICE |
DEPARTMENT OF THE TREASURY |
TEXAS FLYFISHERS PO BOX 571134 HOUSTON, TX 77257 |
Employer Identification Number: DLN: Contact Person: Contact Telephone Number: Accounting Period Ending: June 30 |
Dear Applicant:
Based on information supplied, and
assuming your operations will be as stated in your application for recognition of
exemption, we have determined you are exempt from federal income tax under section 501(a)
of the Internal Revenue Code as an organization described in section 501(c)(3).
We have further determined that you
are not a private foundation within the meaning of section 509(a) of the Code, because you
are an organization described in sections 509(a)(1) and 170(b)(1)(A)(vi).
If your sources of support, or your
purposes, character, or method of operation change, please let us know so we can consider
the effect of the change on your exempt status and foundation status. In the case of an
amendment to your organizational document or bylaws, please send us a copy of the
amended document or bylaws. Also, you should inform us of all changes in your name or
address.
As of January 1, 1984, you are liable
for taxes under the Federal Insurance Contributions Act (social security taxes) on
remuneration of $100 or more you pay to each of your employees during a calendar year. You
are not liable for the tax imposed under the Federal Unemployment Tax Act (FUTA).
Since you are not a private
foundation, you are not subject to the excise taxes under Chapter 42 of the Code. However,
if you are involved in an excess benefit transaction, that transaction might be subject to
the excise taxes of section 4958. Additionally, you are not automatically exempt from
other federal excise taxes. If you have any questions about excise, employment, or other
federal taxes, please contact your key district office.
Grantors and contributors may rely on
this determination unless the Internal Revenue Service publishes notice to the contrary.
However, if you lose your section 509(a)(1) status, a grantor or contributor may not rely
on this determination if he or she was in part responsible for, or was aware of, the act
or failure to act, or the substantial or material change on the
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947 (DO/CG)
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TEXAS FLYFISHERS
part of the organization that resulted
in your loss of such status, or if he or she acquired knowledge that the Internal Revenue
Service had given notice that you would no longer be classified as a section 509(a)(1)
organization.
Donors may deduct contributions to you
as provided in section 170 of the Code. Bequests, legacies, devises, transfers, or gifts
to you or for your use are deductible for federal estate and gift tax purposes if they
meet the applicable provisions of Code sections 2055, 2106, and 2522.
Contribution deductions are allowable
to donors only to the extent that their contributions are gifts, with no consideration
received. Ticket purchases and similar payments in conjunction with fundraising events
may not necessarily qualify as deductible contributions, depending on the circumstances.
See Revenue Ruling 67-246, published in Cumulative Bulletin 1967-2, on page 104, which
sets forth guidelines regarding the deductibility, as charitable contributions, of
payments made by taxpayers for admission to or other participation in fundraising
activities for charity.
In the heading of this letter we have
indicated whether you must file Form 990, Return of Organization Exempt From Income Tax.
If Yes is indicated, you are required to file Form 990 only if your gross receipts each
year are normally more than $25,000. However, if you receive a Form 990 package in the
mail, please file the return even if you do not exceed the gross receipts test. If you are
not required to file, simply attach the label provided, check the box in the heading to
indicate that your annual gross receipts are normally $25,000 or less, and sign the
return.
If a return is required, it must be
filed by the 15th day of the fifth month after the end of your annual accounting period. A
penalty of $20 a day is charged when a return is filed late, unless there is reasonable
cause for the delay. However, the maximum penalty charged cannot exceed $10,000 or 5
percent of your gross receipts for the year, whichever is less. For organizations with
gross receipts exceeding $1,000,000 in any year, the penalty is $100 per day per return,
unless there is reasonable cause for the delay. The
maximum penalty for an organization with gross receipts exceeding $1,ooo,ooo
shall not exceed $50,000.
This penalty may also be charged if a return is not complete, so be sure your return is
complete before you file it.
You are required to make your annual
information return, Form 990 or Form 990-EZ, available for public inspection for three
years after the later of the due date of the return or the date the return is filed. You
are also required to make available for public inspection your exemption application, any
supporting documents, and your exemption letter. Copies of these documents are also
required to be provided to any individual upon written or in person request without charge
other than reasonable fees for copying and postage. You may fulfill this requirement by
placing these documents on the Internet. Penalties may be imposed for failure to comply
with these requirements. Additional information is available in Publication 557,
Tax-Exempt Status for Your Organization, or you may call our toll free number shown above.
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TEXAS FLYFISHERS
You are not required to file federal
income tax returns unless you are subject to the tax on unrelated business income under
section 511 of the Code. If you are subject to this tax, you must file an income tax
return on Form 990-T, Exempt Organization Business Income Tax Return. In this letter we
are not determining whether any of your present or proposed activities are unrelated
trade or business as defined in section 513 of the Code.
You need an employer identification
number even if you have no employees. If an employer identification number was not entered
on your application, a number will be assigned to you and you will be advised of it.
Please use that number on all returns you file and in all correspondence with the Internal
Revenue Service.
This determination is based on
evidence that your funds are dedicated to the purposes listed in section 501(c)(3) of the
Code. To assure your continued exemption, you should keep records to show that funds are
expended only for those purposes. If you distribute funds to other organizations, your
records should show whether they are exempt under section 501(c)(3). In cases where the
recipient organization is not exempt under section 501(c)(3), there should be evidence
that the funds will remain dedicated to the required purposes and that they will be used
for those purposes by the recipient.
If we have indicated in the heading of
this letter that an addendum applies, the enclosed addendum is an integral part of this
letter.
Because this letter could help resolve
any questions about your exempt status and foundation status, you should keep it in your
permanent records.
If you have any questions, please
contact the person whose name and telephone number are shown in the heading of this
letter.
Sincerely yours,
Steven T. Miller
Director, Exempt Organizations
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