Self-Declared Tax-Exempt Organizations Confront Filing Woes

Self-declared tax-exempt organizations are hitting roadblocks when filing a form that details their financial information to the IRS.

Exempt groups typically are required to submit an application that notifies the IRS, before filing Form 990, that they plan to operate as tax-exempt entities.

Organizations that want to self-declare their status, such as 501(c)(4) social welfare organizations and 501(c)(6) professional societies and trade associations, don’t have to submit an application.

Ideally, not filing the application would reduce the barriers to treatment as a tax-exempt entity and relieve the IRS of the additional burden of reviewing the application. However, administrative challenges at ...