If the Service were to revoke its recognition of Z Street’s exempt status, Z Street would have the opportunity to contest that revocation both administratively and in federal court. See I.R.C. § 7428(a)(1), (b)(2) (an organization can seek administrative and judicial review of the Service’s Case 1:12-cv-00401-KBJ Document 100 Filed 11/30/16 Page 22 of 38 16 determination with respect to the organization’s “initial qualification or continuing qualification” for exempt status). If a district court, the Tax Court, and/or a court of appeals affirmed the revocation, only then would Z Street even have the opportunity to again apply for recognition of exempt status.

The Court, before issuing a declaratory judgment or decree under this section, must determine “that the organization involved has exhausted administrative remedies available to it within the Internal Revenue Service.” 26 U.S.C. § 7428(b)(2).2 An organization “shall be deemed to Case 1:08-cv-00514-RBW Document 4-2 Filed 06/18/2008 Page 5 of 10 - 6 - Org. v. United States, 1978 WL 4585, *2 n. 5 (D.C.D.C. 1978)).

And, in the event the IRS finally denies the application or does not act on the application within 270 days, the taxpayer Case 3:14-cv-01537-D Document 88 Filed 11/02/16 Page 21 of 29 PageID 2019 18 may bring a suit for a declaration of its tax status in the Tax Court, the Court of Federal Claims or the U.S. District Court for the District of Columbia. See 26 U.S.C. § 7428(a)(1)(E), (b)(2). Applicants under section 501(c)(4) have a range of administrative and judicial review opportunities that will protect against any potential abuses in the application of Revenue Ruling 2004-6.

at #9129. The cause of action is 26 U.S.C. § 7428, which permits an entity to file a lawsuit to seek a judicial declaration of its tax-exempt status if its application has been denied or, as pertinent to the argument here, pending more than 270 days without a determination. See §7428(a)-(b)(2).

But the Declaratory Judgment Act creates no substantive rights or duties and expressly excludes actions of this type. Section 2201(a) in relevant part provides: "In a case of actual controversy within its jurisdiction, except with respect to Federal taxes other than actions brought under Section 7428 of the Internal Revenue Code of 1986 [regarding exempt organizations], . . .any court of the United States . . . may declare the rights and other legal relations of any interested party seeking such declaration . . . ." The allegations of the complaint (ECF No. 2) make it clear that all such relief concerns federal taxes.