How Long Does the IRS Take?

Check this link: "Currently, we [the IRS] are assigning applications received in [month and year]." http://www.irs.gov/charities/article/0,,id=156733,00.html

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 three to four months (some earlier and some later, but usually before the time that would be indicated by the link above). In other words, we usually get you your Determination Letter with your 501c3 status BEFORE they have assigned your application! This is why we say we think the IRS likes our applications. The key, of course, is to get in line as soon as possible (this is where our guaranteed 5-business day turnaround can benefit you).

Our record was 29 days (2009), but that was unusual: Click here for renowned Harvard-trained plastic surgeon Dr. John Connors's 70 second narrative giving the details.

The following is quoted word for word from the Internal Revenue Service:

This [information] describes our usual determination process. However, recent processing problems have further delayed our case review, as described below, by at least 90 days. We regret this inconvenience and will continue to update this page as the situation develops.

Many exempt organizations and practitioners may have noticed an increase in the timeframe to process an application for tax-exempt status.

We apologize for any delays you may be experiencing and we are taking steps to decrease processing time. This delay is the result of a backlog of exemption applications.

As a result of these delays, we are experiencing a high number of calls into our TE/GE Toll Free Customer Assistance telephone lines regarding the status of Exempt Organization (EO) exemption applications. These calls, in addition to our other calls, are causing increased wait times on the toll free line.

In an effort to provide better service, we will keep you updated on our progress in reducing the backlog of EO exemption applications by posting to this web page information about the date we received applications we are currently processing.

The Process: Upon receipt, exemption applications accompanied by the required user fee are initially separated into three groups: (1) those that can be processed immediately based on information submitted, (2) those that need minor additional information to be resolved, and (3) those that require additional development.

If your application falls in the first or second group, you will receive either your determination letter or a request for additional information, via phone, fax, or letter, within approximately 60 days of the date the application was submitted. If your application falls within the third group, you will be contacted once your application has been assigned to an EO specialist.

Some types of applications must be assigned to specialized agents due to the issues involved, however, and may take longer. These applications are also assigned in order from the date they are received.



It seems to us that most organizations are getting their determination letters in 3, 4, or 5 months, but with some taking longer, depending on the complexity of the nonprofit, and some earlier.