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Shortened Tax Exemption Application Insufficient, Watchdog Says

Oct. 6, 2022, 4:36 PM

A streamlined form that organizations can use to apply for 501(c)(3) tax-exempt status doesn’t t ask for enough information, the Treasury Inspector General for Tax Administration said in a report.

“Although the IRS has developed timesaving procedures for processing Forms 1023-EZ, the application itself does not provide the IRS with sufficient information to appropriately approve or deny an organization’s tax-exempt status,” TIGTA wrote.

The IRS released Form 1023-EZ in 2014 to provide a simplified process that smaller organizations meeting certain criteria can use to request tax-exempt status under tax code Section 501(c)(3) which pertains to charitable organizations. ...