Frequently Asked Questions

What are some tips to avoid processing delays when filing for tax-exempt status?

To avoid processing delays when filing for tax-exempt status, it's crucial to follow the IRS's guidelines meticulously. The IRS has noted that many delays are caused by errors in the application process, often due to incomplete or inaccurate information. Therefore, it's essential to submit complete and accurate information, pay the appropriate fees, and strictly adhere to the instructions when filing for tax-exempt status. One of the key tips to avoid delays is to understand the requirements and instructions thoroughly and complete the application accordingly. This includes providing a description of activities, articles of incorporation, EIN, policies and bylaws, publications, printed materials, and financial information, along with a filing fee of $600. For smaller organizations with total annual projected revenue below $50,000, Form 1023-EZ can be used to quickly obtain tax-exempt status. This form is only available online, which ensures a speedier application process. However, it's still crucial to complete and file the form according to the IRS's specific requirements.