Obtaining 501(c)(3) tax-exempt status is a crucial step for many nonprofits. While the IRS typically processes Form 1023 applications in the order received, there are specific circumstances under which an organization can request expedited processing. It's important to note that expedited processing is granted solely at the IRS's discretion and is only available for the full Form 1023—not the streamlined Form 1023-EZ.
Eligibility for Expedited Processing
The IRS may consider expedited processing if your organization demonstrates a compelling reason, such as:
Pending Grant or Funding: If a significant grant or asset is contingent upon receiving tax-exempt status by a specific date, and failure to secure the grant would adversely impact the organization's operations.
Disaster Relief Efforts: For newly formed organizations providing immediate assistance to victims of emergencies like natural disasters.
IRS Error: If an error on the part of the IRS has caused undue delays in processing your application.
In each case, the organization must provide detailed documentation to support the request, including evidence of the urgency and potential impact on operations.
How to Request Expedited Processing
To request expedited processing, submit a written statement with your Form 1023 application that includes:
A clear explanation of the compelling reason for the request.
Supporting documentation, such as letters from grantors specifying the conditions and deadlines.
The signature of a principal officer or authorized representative.
This request should be included as an attachment to your application and must be submitted through the IRS's electronic filing system on Pay.gov.
Important Considerations
Form 1023-EZ Ineligibility: Expedited processing is not available for the streamlined Form 1023-EZ.
IRS Discretion: Approval of expedited processing requests is entirely at the discretion of the IRS and is not guaranteed.
Complete Applications: Ensure that your Form 1023 application is complete and accurate. Incomplete applications may delay processing and reduce the likelihood of expedited consideration.
Need Assistance?
Navigating the process of requesting expedited processing can be complex. Our team at InstantNonprofit is here to help. We can guide you through the requirements and assist in preparing a compelling request to increase the chances of expedited approval. Contact us today to learn more about how we can support your organization's needs.