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Business Tax

IRS Updates its Procedures for Contacting Entities Seeking Exempt Status

Thomson Reuters Tax & Accounting  

Thomson Reuters Tax & Accounting  

IRS’s Tax Exempt and Government Entities (TE/GE) Division has issued a memo to its employees that updates procedures those employees should use when contacting entities that are applying for tax exempt status.

The memo notes that the following procedures apply to further ensure taxpayers’ effective participation in the exempt organization determinations process, to promote consistency in determinations procedures across TE/GE, and to clarify the Division’s processes when the taxpayer authorizes a representative to assist:

If an organization does not submit a Form 2848 (Power of Attorney and Declaration of Representative) with its application for recognition of tax-exempt status or during case processing, contact the primary contact person listed on the application to discuss issues or items in the application, to follow-up on Letters 1312 requesting additional information, and to otherwise discuss determinations such as for a potentially adverse case (i.e., for all telephone inquiries) as currently described in Internal Revenue Manual (IRM) 7.20.1.6.

If an organization submits a valid Form 2848 with its application for recognition of tax-exempt status or during case processing, IRS specialists will contact the authorized representative listed on the Form 2848 to discuss issues or items in the application, to follow-up on Letters 1312 requesting additional information, and to otherwise discuss determinations such as for a potentially adverse case (i.e., for all telephone inquiries), except as listed below.

In the situations below, a specialist should contact the primary contact person listed on the application as currently described in IRM 7.20.1.6.

  1. Specialist cannot make contact with the authorized representative on Form 2848 within five business days of the initial attempt to contact the authorized representative. The specialist should confirm the authorized representative, the authorized representative’s contact information and preferences for future communications.
  2. If the organization’s primary contact, board member, officer, or other authorized person contacts the specialist directly, the specialist will discuss the application with that individual and confirm preferences for future communications.

If a Form 2848 or Form 8821 (Tax Information Authorization Form) is invalid and an additional information request is sent, a copy should be returned to the organization , explaining why the form is invalid. If no additional information is needed, a determination letter is prepared and sent to the organization. An additional information letter or determination letter is not sent to the person(s) designated on an invalid Form 2848 or 8821.

To continue your research on tax-exempt organization status, see FTC2d ¶ D-4000.

 

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