IRS MODIFIES EXCEPTION IN REV. PROC. 95-35.

Rev. Proc. 95-35A

Rev. Proc. 95-35, 1995-32 I.R.B. 51, clarifies the application of section 6033(e) to organizations exempt from taxation under section 501(a) of the Internal Revenue Code. In describing social welfare organizations recognized by the Service as exempt under section 501(c)(4) and agricultural and horticultural organizations recognized by the Service as exempt under section 501(c)(5) that are excepted from the requirements of section 6033(e), Rev. Proc. 95-35 inadvertently limited one of the exceptions to organizations that receive more than 90 percent of all annual dues (or similar amounts) from persons, families, or entities who each pay annual dues (or similar amounts) of less than $50. This revenue procedure modifies Rev. Proc. 95-35 by changing the amount of annual dues (or similar amounts) that may be received by such organizations without becoming subject to the requirements of section 6033(e) to $50 or less.

Section 4.02 of Rev. Proc. 95-35 is modified as follows: The phrase "less than $50" is replaced by "$50 or less".

EFFECT ON OTHER DOCUMENTS

Rev. Proc. 95-35 is modified. Rev. Proc. 95-35 will incorporate this modification when it is published in the Cumulative Bulletin.

DRAFTING INFORMATION

The principal author of this revenue procedure is Thomas J. Miller of the Exempt Organizations Division. For further information regarding this revenue procedure contact Mr. Miller on (202) 622-7867 (not a toll-free call).