[Code of Federal Regulations]
[Title 26, Volume 7]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.509(c)-1]

[Page 140]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.509(c)-1  Status of organization after termination of private 
foundation status.

    (a) In general. For purposes of part II of subchapter F of this 
chapter, an organization whose status as a private foundation is 
terminated under section 507 shall be treated as an organization created 
on the day after the date of such termination. An organization whose 
private foundation status has been terminated under the provisions of 
section 507(a) will, if it continues to operate, be treated as a new 
organization and must, if it desires to be classified under section 
501(c)(3), give notification that it is applying for recognition of 
section 501(c)(3) status pursuant to the provisions of section 508(a).
    (b) Effect upon section 507(d)(1). If the private foundation status 
of an organization has been terminated under section 507(b)(1)(B) and 
the regulations thereunder, and:
    (1) Such organization does not continue at all times thereafter to 
meet the requirements of section 509(a) (1), (2), or (3) (and is 
therefore no longer excluded from the definition of a private 
foundation); and
    (2) The status of such organization as a private foundation is 
thereafter terminated under section 507(a),

then the tax imposed under section 507(c)(1) upon the aggregate tax 
benefit (described in section 507(d)(1)) resulting from section 
501(c)(3) status shall be computed only upon the aggregate tax benefit 
resulting after the date on which the organization again becomes a 
private foundation under subparagraph (1) of this paragraph.

[T.D. 7212, 37 FR 21924, Oct. 17, 1972]