Expedite Request to the IRS
Applications for federal 501(c)(3) tax-exempt status are normally processed in the order they are received by the IRS office. A request to expedite the processing of an application may be approved where a request for expedited processing 1) is made in writing and 2) contains a compelling reason for processing the request for a determination letter ahead of other requests.
If a request for expedited processing is approved it only means that a request for a determination letter will be considered ahead of the normal order. This does not mean the request for a determination letter will be immediately approved or denied.
Whether the request for expediting the application approval process is granted is completely within the Service’s discretion. Circumstances generally warranting expedited processing include:
(a) a grant to the applicant has been promised, contingent upon receiving 501(c)(3) status. In addition, failure to secure 501(c)(3) status quickly will cause the grant promise to expire, and thusly have an adverse impact on the organization’s ability to continue to operate;
(b) the purpose of the newly created organization is to provide disaster relief to victims of contemporary emergencies such as flood and hurricane; and
(c) there have been undue delays in issuing a determination letter caused by a Service error.
Procedures for requesting expedited handling:
For applications not submitted electronically: The request for expedited handling must be made in writing, preferably in a separate letter sent with, or soon after filing, the application for a determination letter. If the request is not made in a separate letter, then the letter in which the determination letter request is made should say, at the top of the first page: “Expedited Handling Is Requested. See page ___ of this letter.”
In the case of the electronically submitted Form 1023, a request for expedited handling must be indicated on the form and a supporting written statement must be submitted as an attachment with the completed application.
Applications on Form 1023-EZ are ineligible for expedited handling. An organization may not request expedited handling of a Form 1023-EZ.
A request for expedited handling will not be forwarded to the appropriate group for action unless the application has been accepted for processing.
Conclusion
To avoid the need for requesting an expedited processing of an application, the Service urges all taxpayers to:
- Submit their applications well in advance of the contemplated need for approval
- Ensure that their initial submissions comply with all of the requirements of this revenue procedure, and
- Promptly provide any additional information requested by the Service during their processing of an application.