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Welcome to this presentation on the Government Information Letter.

The information presented here is current as of the day it was presented. This material isn't official guidance.

Any stories, names, characters, and incidents portrayed in this production are fictional.

No identification with actual persons (living or deceased), places, buildings and products is intended or should be inferred.

We're recording this program and maintaining it in accordance with federal recordkeeping laws.Now let's get started.

The IRS wants to share helpful information for governmental organizations.

These organizations are frequently asked to provide a tax-exempt number or "determination" letter to prove their status as a "tax-exempt" or charitable entity.

For example, applications for grant funding generally require this information and donors frequently ask for it as substantiation their contribution is tax deductible.

Government entities are unique from non-profit organizations.

While a non-profit requires an IRS determination letter to secure tax-exempt status, a government entity doesn't.

However, as a service to government entities, the IRS will issue a Governmental Information Letter.

Letter 4076C is entitled Information Letter - Federal Tax Status of Governmental Entity.It's free to government entities.

It summarizes the law regarding the tax-exempt status of state and local governments under Internal Revenue Code section 170(c)(1).

The letter provides the reader general information under IRC section 115(1) regarding the federal income tax status of an entity that performs essential government services.

And it explains the conditions that must be met for governmental organizations to qualify for federal income tax exemption under IRC section 501(c)(3).

The letter also cites the form required to apply for a determination that the organization is exempt from federal income tax and that charitable contributions made to it are tax deductible.

To obtain a Letter 4076C Governmental Information Letter, call the IRS Tax Exempt and Government Entities customer assistance line at 1-877-829-5500.

You'll need to provide the Employer Identification Number (or EIN) of the entity, along with its name and address exactly as it appears on IRS records.

The person calling must be able to assert that he or she is a hired or elected employee of the entity and legally authorized to receive the letter.

In most instances, you'll receive Letter 4076C in 10-14 business days.

Some government entities are considered dual-status, which means they also have IRC section 501(c)(3) status.

Internal Revenue Code section 501(c)(3) grants exemption from federal income tax to organizations operated for religious, charitable, scientific, literary, or educational purposes.

Contributions to these organizations are deductible on a donor's federal income tax return.

If the entity has non-profit 501(c)(3) status, they may request their exempt organization affirmation letter, which donor's may ask for, by calling 1-877-829-5500.

A government entity may affirmits tax-exempt status with the IRS by requesting a Private Letter Ruling or PLR, which is a formal determination. There is a fee for this service.

More information about private letter rulings can be obtained by referring to the first Revenue Procedure, issued annually.

For 2019, enter "Revenue Procedure 2019-1" in the search engine to go to a document link outlining the details about requesting a Private Letter Ruling.

Here are two IRS publications available with information on related topics: First, Publication 526, Charitable Contributions, explains to donors which contributions they can and can't deduct.

This publication contains a list of the types of qualified organizations able to receive deductible contributions.

The list includes: The United States, any state, the District of Columbia, a U.S. possession, or a political subdivision of a state.

And second, Publication 557, Tax-Exempt Status for Your Organization is useful if the entity has already been determined to have dual-status or is considering pursuing 501(c)(3) status.

Remember, if you are a state or local government entity and would like a governmental information letter call 1-877-829-5500 to request your Letter 4076C.

It may satisfy substantiation requests your governmental entity receives from donors and grantors.