Meghan Biss Comments on New Requirements for Nonprofits with D.C. Tax-Exempt Status

To renew exemptions [in D.C.], organizations will need to provide a copy of the IRS determination letter approving the exemption. Organizations will need to obtain an affirmation letter from the IRS, confirming their status, if the determination letter is more than four years old, according to guidelines from the D.C. government.

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The backlog at the IRS [from the shutdown] and the requirement for nonprofits could create a problem for organizations that don’t submit written requests to the agency early, said Meghan Biss, a counsel at Caplin & Drysdale in Washington and former technical adviser in the IRS Exempt Organizations division. “It also generates an additional strain on the already limited resources at the IRS as organizations with D.C. exemptions are coming in to request these letters,” she said in an email.

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Excerpt taken from the article “Renew Tax Status or Risk Losing It, D.C. Warns Nonprofits” by Robert Lee for Bloomberg Law.