The Internal Revenue Service has made progress in improving the speed at which it processes applications by groups seeking tax-exempt status.
But Nina E. Olson, the national taxpayer advocate, says the agency still is not moving fast enough.
Ms. Olson, who operates independently of other IRS offices and reports to Congress, said in a new report that she plans to work with the IRS’s tax-exempt and government-entities division to change the way the agency processes applications for nonprofit status.
To qualify as a tax-exempt organization, groups must file Form 1023, which includes information about a group’s proposed activities and operations.
Because of the number of applications it receives, the IRS has been slow to keep up with processing the Form 1023 — leading to lengthy delays for groups that are awaiting a ruling on their nonprofit status.
Ms. Olson said in her report to Congress that the IRS reduced its applications backlog by 55 percent as part of an effort to reduce these delays.
But the IRS must take additional steps to reduce processing time, she said.
The Chronicle wants to hear from organizations that have faced a lengthy delay when applying for nonprofit status with the IRS. How long did the process take and what effect, if any, did a delay have on your operations?
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