Learn about several IRS topics, such as how long the IRS takes, contacting the IRS, IRS tax-deductibility, your 501c3 letter, IRS expedited handling, and the IRS Form 1023-EZ.
It seems as though the IRS likes the way we structure and present our applications. In most cases (but not always), you will receive your tax-exempt status in around four months or so (3 to 11 months is the typical range).
Are contributions to an organization that has not received an exemption determination letter deductible?
If an organization is exempt under section 501(c)(3) of the Internal Revenue Code, charitable contributions to it are deductible. To be exempt under section 501(c)(3), most organizations must file Form 1023 by the end of the 27th month after they were created. If an organization does so, charitable contributions to it will be deductible back to the date of formation.
There are two ways to find out if your nonprofit already has its 501c3. Need a Copy of Your 501c3 Letter?
Because it takes so long normally to get the Determination Letter from the IRS, many of our clients would like to know if there is a way to expedite the IRS process. Our documentation is ready for you in 5 working days, but the wait at the IRS is a long one—6 months, 7 months, 8 months, 9 months (though most of ours get through quicker).
In July, the IRS introduced a new streamlined way to get your nonprofit status. Their purpose in doing so is to reduce their backlog of 60,000 applications (they receive 70,000 applications per year). We wish we could be excited about the new form because it is easier, but unfortunately, we don’t believe it will survive, or if it survives, it will create headaches for you.