ADMINISTRATIVE APPEAL RELATING TO ADVERSE DETERMINATIONS OF TAX-EXEMPT STATUS OF CERTAIN ORGANIZATIONS.

SEC. 404. ADMINISTRATIVE APPEAL RELATING TO ADVERSE DETERMINATIONS OF TAX-EXEMPT STATUS OF CERTAIN ORGANIZATIONS. (a) [26 U.S.C. 7123] In General.—Section 7123 is amended by adding at the end of the following: “(c) Administrative Appeal Relating to Adverse Determination of Tax-Exempt Status of Certain Organizations.— “(1) In general.—The Secretary shall prescribe procedures under which an organization which claims to be described in section 501(c) may request an administrative appeal (including a conference relating to such appeal if requested by the organization) to the Internal Revenue Service Office of Appeals of an adverse determination described in paragraph (2). “(2) Adverse determinations.—For purposes of paragraph (1), an adverse determination is described in this paragraph if such determination is adverse to an organization with respect to— “(A) the initial qualification or continuing qualification of the organization as exempt from tax under section 501(a) or as an organization described in section 170(c)(2), “(B) the initial classification or continuing classification of the organization as a private foundation under section 509(a), or “(C) the initial classification or continuing classification of the organization as a private operating foundation under section 4942(j)(3).” . (b) [26 U.S.C. 7123 note] Effective Date.—The amendment made by subsection (a) shall apply to determinations made on or after May 19, 2014.