IRS to Start New Internal System for Tax-Exempt Applications

The IRS is rolling out a new system that agency employees will use to process organizations’ applications for tax-exempt status.

The system will replace the current one for exempt-status determinations, which has been used for decades, said Robert Malone, IRS director of exempt organizations and government entities, during a Thursday panel at a conference hosted by the TEGE Exempt Organizations Council.

The tax-exempt division will start using the new internal system Monday, Malone said. Employees are training for change this week.

Modernizing systems and incorporating artificial intelligence into compliance operations and inventory management are among the fiscal year 2026 priorities ...