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IRS Services to Tax-Exempts Proceeding During Pandemic

Posted on June 9, 2020

The IRS continues to process exemption applications and provide other services to tax-exempt organizations despite office closures and other challenges posed by the coronavirus pandemic, according to an agency official.

“We have continued to keep our operations moving forward,” Margaret Von Lienen, director of exempt organizations and government entities in the IRS Tax-Exempt and Government Entities Division, said on a June 8 TEGE Exempt Organizations Council webcast.

The closure of IRS offices might have delayed processing of some mail, “but in most of our offices for exempt organizations and government entities, we have been able to continue to work and manage the mail that we’re receiving,” Von Lienen said.

The IRS has continued to process exemption applications on a “first-in, first-out” basis, Von Lienen said.

Exceptions are made for applications that qualify for expedited processing. Those include applications from entities with pending grants needed to maintain operations, newly created disaster relief organizations, and instances in which IRS errors have caused undue delays in issuing determination letters.

The IRS also continues to process electronic EO information returns, Von Lienen said.

Online Help

Von Lienen noted that the IRS has reduced responses to paper correspondence and that the agency stopped processing paper exemption applications and paper information returns in late March before resuming at the end of April. The IRS anticipates a delay in the availability of information returns and approved determination letters for viewing on the tax-exempt organization search tool on IRS.gov, she added.

Because IRS office closures have made it difficult for EOs and practitioners to obtain updates on the processing of exemption applications, the agency has launched a new webpage on the Charities & Nonprofits section of IRS.gov, under the “Where’s My Application for Tax-Exempt Status?” link.

The webpage has a chart showing the types of applications submitted and the postmark date of applications assigned to specialists, Von Lienen said. It also explains how to contact the IRS if an organization hasn’t been contacted by a specialist even though its application postmark date preceded the dates in the chart, she said.

“We’re hoping that that new webpage will provide our applicants with information that they need so that they know where their application is in the process,” Von Lienen said.

Von Lienen also noted that the toll-free helpline for TE/GE customer account services, which had been suspended, reopened in late May.

Correspondence Exams

Currently, all examinations are being conducted via correspondence, Von Lienen said.

No new exams are being started except for claims, abatements, cases with a short statute requiring the IRS to protect the statute, employer shared responsibility payment cases, issuances of notices of church tax examinations if required because of section 7611 time limitations, pickups of related and subsequent year cases, and Criminal Investigation division requests, Von Lienen said.

The IRS continues to issue compliance checks and soft letters and is still working on walk-in closing agreements, Von Lienen added.

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