Influx of Applications Creates Backlog at IRS

A backlog of applications from organizations seeking tax-exempt status from the Internal Revenue Service has caused that agency to slow its response to such applications, reports The Wall Street Journal.

The most straightforward applications have seen fast approval time, with two months being fairly typical. But more complex ones can take as long as 10 or 11 months to process.

One reason for the delay is increased IRS scrutiny of international grants to ensure such money is not supporting terrorists, the Journal reports.

Lois Lerner, director of the Exempt Organizations Division, said that another reason for the increased wait time is a decline of 20 staff members during a four-year period when the number of applications grew by about 5,000. The IRS said in a statement that it was taking steps to cut the time it takes to process applications.

The IRS has also been working to hire more auditors to review tax-exempt groups, reports The Chronicle of Philanthropy.

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