June 3rd, 2012 | Comments Off on Current IRS Concerns for Exempt Organizations: Backlog Reduced but Increasing Again

The Director of Exempt Organizations for the IRS, in a recent speech, revealed several matters of concern for the Service.

Fifth, the IRS receives approximately 60,000 applications for exemption each year. In the past few years, they divided the forms into four categories to streamline the review and application process.

  • approve immediately—application fully completed;
  • approve after seeking minor additional required information;
  • need substantial additional information to complete application; and
  • need further development by an IRS agent to determine if the application meets the requirements for tax-exempt status.

This reduced backlog but the backlog is now increasing with a larger number of organizations who recently lost tax exempt status because of non-filing of forms making new applications.