Why tax-exempt status is delayed

The Internal Revenue Service reports the top 10 reasons why there may be a delay in issuance of a nonprofit’s determination letter of tax-exempt status:

10.  Insufficient financial data on the Form 1023

9.   Uncertainty about accounting period end

8.   Incomplete information about principal officers and board of directors

7.   Insufficient information about organization’s exempt purpose

6.   Incomplete supporting schedules

5.   Incomplete application form

4.   Lack of required signature on form

3.   Lack of adopted by-laws

2.   Lack of articles of incorporation or similar organizing document

“The Number 1 reason for delays in processing exempt organization
applications is . . . INCORRECT OR NO USER FEE!”

The IRS document with instructions on applying for tax-exempt status is here.

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