My Application for Tax Exemption Was Submitted to the IRS. Why Is It Taking So Long?

Have you submitted your organization’s application for tax exemption within the last several months, but still haven’t heard back from the IRS? If so, it should come as no surprise: the IRS processes around 60,000 such applications annually, and, due to a slew of factors—a perfect storm of hindrances—there are even more substantial delays than usual.

Our own Paul Hammerschmidt, a director of the Exempt Organization Tax Practice in the BDO Greater New York office’s Nonprofit practice, was just featured in the Nonprofit Quarterly, where he helps shed light on the reasons behind these holdups. While you may still have to wait for your organization’s determination letter, a better grasp of the causes for these delays can help you navigate these setbacks and, in some instances, speed up the process.