[COMMUNICATED CONTENT]

When looking to create a tax-exempt organization, many applicants are surprised to learn that it takes the IRS months and sometimes years to approve their application. This can be a very frustrating waiting period, and it often unnecessarily delays the charitable work that the organization seeks to accomplish. This will hopefully change, at least for smaller organizations. In an effort to expedite the overflowing influx of thousands of Tax Exempt Applications the Internal Revenue Service has recently introduced a simplified version of the otherwise detailed application process. This simplified process will allow many newly formed smaller organizations to file their applications online and hopefully speed up the long delays that many organizations experience in their quest to receive their long awaited 501 (c) (3) determination letter. The IRS predicts that up to seventy percent of applicants will be eligible to use this process. To be eligible for this time efficient approach, an applicant must meet the following requirements:

1. The applicant must have annual gross receipts of less than 50k for each of the first three years of operation and total assets of less than 250k.
2. The applicant cannot be applying for a Church (Shul), School or Hospital.

Isser Zeilingold is a CPA whose practice focuses on tax exempt organizations and compliance. Isser can be reached at (845)426-0035 or [email protected]