The IRS Calls It “Streamlined”: New Regs for Applying for Status

The IRS and the Treasury Department have issued new regulations that they claim will “streamline” the approval process for organizations seeking tax-exempt status for publicly supported charities.
What the regs do, realistically, is eliminate advance rulings for public supported charities. This became possible after a recent redesign of the federal form 990 which allows charities to demonstrate public support in a transparent way.
While I was surprised to see the advanced rulings for publicly supported charities disappeared, it makes sense. Statistically, almost 95% that receive an advance ruling are granted status at the end of the five-year period. That’s …read more