Because it takes so long normally to get the Determination Letter from the IRS, many of our clients would like to know if there is a way to expedite the IRS process. Our documentation is ready for you in 5 working days, but the wait at the IRS is a long one—6 months, 7 months, 8 months, 9 months. The IRS is doing its best, but as one person at the IRS told me, "The mailman used to bring in these applications. Now they come in by the truckload." An exaggeration, perhaps, but the IRS is under an extreme backlog. They used to send you your Determination Letter within 120 days (four months). But then about three years ago, they changed everything in order to do their job quicker—to send you your Determination Letter within 60 days, they said. But under their new system, they rapidly fell behind and have been struggling ever since.
So how do you go about getting expedited service from the IRS? First of all, you should know that the IRS turns down 82% of requests for expedited service. Everyone wants to get to the front of the line at the drinking fountain, naturally, but it is not easy. Here's what the IRS says about its expedited service in its instructions for Form 1023, the application for tax-exempt status:
Expedite Requests
We will only approve expedited processing of an application where a request is made in writing and contains a compelling reason for processing the application ahead of others.
Circumstances generally warranting expedited processing include:
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- A grant to the applicant is pending and the failure to secure the grant may have an adverse impact on the organization's ability to continue operations.
- The purpose of the newly created organization is to provide disaster relief to victims of emergencies such as flood and hurricane.
- There have been undue delays in issuing a letter caused by problems within the IRS.
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If you feel you have a chance to obtain this expedited service from the IRS, we do have a special IRS - Expedited Service when you sign up (or you can add it later). It is an additional $200, and of course, there is absolutely no guarantee that you will be successful in your request. The worst that can happen is the IRS will deny you their expedited service, and will include you in the 82% of requests that are denied.