CRSO - Page 6

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          tax-exempt status.  The letter concluded that petitioner is a               
          feeder organization described under section 502 and does not meet           
          the operational test for exemption under section 501(c)(3).                 
               By letter dated November 25, 2002, petitioner requested a              
          hearing with respondent’s Appeals Office concerning this matter.            
          In a letter dated November 4, 2003, the Appeals Office made a               
          “final adverse determination”, concluding:                                  
                    Your only activity is the rental of improved real                 
               property and forwarding net funds to an organization                   
               described in section 501(c)(3).  Your primary purpose                  
               is to operate a trade or business for profit.  As such,                
               you are an organization described in section 502(a).                   
               You are not entitled to the exception set forth in                     
               section 502(b)(1) because not all of your rents would                  
               be excluded under section 512(b)(3).  Finally, you did                 
               not establish that you were operated exclusively for                   
               one or more purposes specified under section 501(c)(3)                 
               of the Code.                                                           
               Respondent initially sent the determination letter to an               
          incorrect address.  Petitioner received the determination letter            
          only after respondent mailed it by certified mail to petitioner’s           
          counsel on June 14, 2005.  On June 27, 2005, petitioner filed its           
          petition requesting section 7428 declaratory relief as to its               
          tax-exempt status under section 501(c)(3).                                  
          A.   Jurisdiction   Our jurisdiction over this action for                   
          declaratory relief depends upon the filing of a timely petition.2           

               2 The parties do not disagree that petitioner timely filed             
          its petition and that we have jurisdiction pursuant to sec.                 

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