TIGTA Recommendation #5
Details and Status
Last updated: January 31, 2014
|5||Develop guidance for specialists on how to process requests for tax-exempt status involving potentially significant political campaign intervention. This guidance should also be posted to the Internet to provide transparency to organizations on the application process.||Director, Exempt Organizations||
* Green = On schedule, Yellow = Behind schedule, Red = Significant issues
- In June 2013, the IRS issued an interim guidance memorandum to offer optional, expedited processing to certain section 501(c)(4) organizations whose applications had been pending for more than 120 days as of May 28, 2013. On December 23, 2013, further interim guidance was issued expanding this optional expedited processing to all section 501(c)(4) applicants whose applications indicate that the organization may be involved in political campaign intervention or in providing private benefit to a political party and that otherwise do not present any issue with regard to exempt status. Both memoranda are posted on the Internet (linked above). This recommendation is closed.
- Memo to expand the optional expedited process is in final review, anticipated release the first week of January 2014
- Memo to expand the optional expedited process is currently on hold pending further review and consultation with stakeholders.
- Memo expanding optional expedited process to certain applications under section 501(c)(4) submitted after January 31, 2013, dated September 30, 2013, was issued to staff on October 17, 2013 (delay due to government shutdown). Letters 5228 to be sent to additional applicants soon.
The memo is currently on hold pending further review and consultation with stakeholders.
- The Emerging Issue Committee (EIC), see recommendation #2, will develop guidance for employees.
- Interim Guidance on Processing Interim Guidance Memoranda was issued on September 19, 2013.
- Draft procedures for addressing additional pending cases and future applications involving tax-exempt status have been circulated to EO leadership, EO Determinations, and staff of the office of the Division Counsel/Associate Chief Counsel (TEGE).
- EO leadership and EO Determinations, in consultation with staff of the office of the Division Counsel/Associate Chief Counsel (TE/GE), are beginning development of an action plan for addressing additional pending cases and future applications involving tax-exempt status.
- Instituted a new review process and expedited self-certification option for priority backlog cases
- IRS Chief Counsel has assigned six additional attorneys to support EO Technical team in handling the most complex cases related to political campaign intervention, beginning on June 11, 2013
- Engaged TE/GE Exempt Organizations, Communication Education and Outreach on posting revenue rulings and any subsequent materials to the Internet
- Working on strategy to address future applications for tax exempt status, to include further guidance from IRS Chief Counsel as necessary