IRS PLR: Organization Maintaining a Family Cemetery Exempt Status Denied for Failing Operational Test (IRC §501)

Organization formed to preserve, maintain, and provide general upkeep for a specified family cemetery denied tax-exempt Section 501(c)(3) status for failing the operational test, the IRS ruled. All of Organization’s revenue is from donations and all expenses are for maintenance and tax return preparation, the IRS stated. The IRS determined that Organization failed the operational tests under Treasury Regulations Section 1.501(c)(3)-1(d)(2) because its sole activity was maintaining a cemetery, which is not an exempt purpose. [PLR 202144029]

Reference:
View Source Document.