• Through the Heart

    Do you know what the current wait time is to receive a tax exemption determination? We just submitted our application last week and are hearing a lot of conflicting info on how long it might take. Thanks!

  • Michael Wyland

    Paul is absolutely correct. One law firm specializing in nonprofit tax exemption is advising its clients to anticipate a 24-month (two-year) timeframe for application processing by the IRS. In mid-August, the IRS reported a backlog of over 60,000 applications for tax exemption, with about 2/3 of the total being Form 1023 applications for exemption as 501(c)3 charities. [The same office processes Form 1023 and Form 1024 applications, so 501(c)4s, 501(c)5s, 501(c)6s, and 501(c)3s, among others, are all affected by the backlog.

    One additional factor causing current delays is the occupation of significant IRS resources in cooperating with the five concurrent investigations into the handling of applications for tax-exemption (three Congressional committees, the Treasury Inspector General, and the FBI). At least one of the Congressional investigations was recently expanded to include how certain approved tax-exempt entities were treated by the IRS office in Dallas, TX.

  • Beth Gazley

    It is Paul Hammerschmidt’s opinion, not fact, that applications from Tea Party-related organizations “were subjected to unnecessary scrutiny”. He has no way of knowing this and, unfortunately, neither does the public. Given the regular abuse of EO status by politically active organizations, it seems rather irresponsible to suggest IRS scrutiny has no public value.