+A short and simple IRS form used by groups seeking tax-exempt status as charitable organizations should be replaced by a new version to prevent ineligible organizations from obtaining exemption, according to a national network of nonprofits.
+A form used to streamline the approval process for obtaining tax-exempt status should be recreated because it has failed to ensure that the IRS grants exempt status to only eligible organizations, the National Council of Nonprofits said in a...
+The NTA report criticized the 1023-EZ’s “checkbox approach” that asks applicants to attest that they qualify for a tax exemption rather than having to demonstrate that they meet the requirements.
+The findings point to "abnormalities," because it typically takes a long time for new nonprofits to establish themselves and grow, said Tim Delaney, president of the National Council of Nonprofits.
+A rational solution would have been to increase the workforce, shorten the wait time and continue the screen. Instead, in 2014, the feds created a new solution: the new form “1023EZ." For $400, the new entity, if it will have less than $50,000 in...
+The shorter form may have helped reduce the IRS’s backlog of applications, but it has invited fraud, said Tim Delaney, president of the National Council of Nonprofits.
+A number of nonprofit advocate groups are deeply concerned about the new form.
+"In many communities, it takes more to get a library card than it takes to get this new exempt status," said Tim Delaney, president and chief executive of the National Council of Nonprofits, a network of charitable groups.
