Denials of 501(c)(3) Tax Exemption: A New Study

For nonprofit law and policy geeks interested in the decision process of the IRS for 501(c)(3) tax exemptions, there's an important recent study available online through the Social Science Research Network (SSRN). Professor Terri Lynn Helge of Texas A&M University School of Law has written a first-of-its-kind analysis of IRS denials of Form 1023 (and 1023-EZ) exemption applications for the period 2004 through Read More

Critics’ Concerns About Form 1023-EZ: Spot On

The Internal Revenue Service’s own Taxpayer Advocate Service (TAS) has confirmed that the worst fears about the new Form 1023-EZ launched in mid-2014 were well-founded. In its recent 2015 Annual Report to Congress, the “highlights” section on the cover includes this headline: “Recognition as a Tax-Exempt Organization is Now Virtually Automatic for Most Applicants.”   Troubled Form 1023-EZ Procedure The Taxpayer Read More

Has the New Form 1023-EZ Made it Easier?

Easier? To receive a speedy “determination letter” back from the IRS?  Probably, yes. To be sure that your small organization’s approval for 501(c)(3) tax-exempt status is on firm ground, and will be recognized in the foreseeable future by grantmakers, supporters, and the IRS, itself?  The jury’s still out on that one. A Recap It’s been no secret that the Exempt Organizations Division of the Internal Revenue Read More

Is the Form 1023EZ Too Easy?: Part III – The Applicant’s Decision

It hasn’t exactly been smooth sailing recently for the IRS and its Exempt Organizations Division. What with Congressional subpoenas, lost emails, and gloomy tea parties, these federal charity regulators have been taking hits on several fronts. That may be one of the reasons why the beleaguered agency made the decision to go ahead with a flawed and imperfect plan to address the problem of huge delays in approval time Read More

Is the New Form 1023EZ Too Easy? Part I – Introduction

Unless your organization is fairly new, you may not be aware that the IRS Exempt Organizations Division has been grappling with a huge problem. No.  Not the one about lost emails, and Congressional subpoenas, and social welfare organizations’ political activities. This one’s about the absurdly long time it’s been taking for the beleaguered agency to approve Section 501(c)(3) tax exemptions. For several years, the Read More