IRS Releases Progress Report on Exemption Application Backlog

June 30, 2014 Posted by Jessica Shofler in IRS, News, Nonprofits

BacklogIt may be hard to remember now why the scandal surrounding Lois Lerner started. Late last week the IRS reminded us. On Thursday it released an update on its progress reviewing the social welfare organization backlog. The backlog included organizations identified in May, 2013 as being selected by the IRS for additional scrutiny based on improper criteria.

The IRS reported that, as of June 18, 2014, it has closed 132 cases in the original backlog (91%), with 101 cases receiving favorable determination letters.

This news did not receive a positive reaction from David French of the American Center for Law and Justice, which represents 41 organizations in a suit against the IRS on the matter. He explained: “There is nothing satisfactory about the IRS process. It’s been conducted in a discriminatory and malicious manner since 2009, and that conduct continues.”

French noted that, of the 41 organizations participating in the lawsuit, 26 had their applications approved after long delays, 9 are still pending, 5 withdrew their applications, and 1 had its file closed after refusing to answer what French deems unconstitutional requests for additional information.

Too bad the IRS didn’t release a report on the tens of thousands of applications reportedly awaiting determination of 501(c)(3) status.

NOTE: The information contained herein is not intended to be legal advice and the reader should know that no Attorney-Client relationship or privilege is formed by the posting or reading of this article which is also not intended to solicit business.

Casey Summar, Partner, The Law Firm for Non-Profits, 4705 Laurel Canyon Blvd, #306, Studio City, CA 91607

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