​​​​​​​​​​​​Real Help With Your 501(c)(3) Application

A. According to the Where's My Application page of the IRS website, the IRS is taking about nine months to process Form 8940.  Some people have reported that their new IRS letter appeared on the IRS website before they received it in the mail.  When the date given on the Where's My Application page suggests your case may have been assigned, you might want to begin checking your organization's EIN on the Tax Exempt Organization Search page on the IRS website.

Contributions continue to be deductible while you wait.  The lower limits placed on certain donations to private foundations (see Q9 Are there any alternatives to filing Form 8940? 1. Do nothing) apply to taxpayers whose donations exceed 20% of their adjusted gross income.  Note whether any of your organization's large donors may be affected by these limits so you can send them copies of your IRS reclassification letter when it is issued.

A favorable letter granting your reclassification request is a Form letter 4425.  The form letter number appears in the lower right hand corner.  Read your Form Letter 4425 carefully.  It appears that stray/unrelated paragraphs are inserted in this letter from time to time.


This information is not available in the 2020 revision of Prepare Your Own​​

Question 5 - How Long Does It Take for the IRS to Process Form 8940?