While the Internal Revenue Service works on new guidelines for determining which organizations are eligible for tax code Section 501(c)(4) exemptions, it has cleared 75 percent of the backlog of applications caught up in the Tea Party controversy, an IRS official said.
Speaking Nov. 21 at the annual Western Conference on Tax Exempt Organizations, Judith Kindell, senior technical adviser in Exempt Organizations, said that as of Oct. 18, the Service had resolved 99 of the cases—representing 75 percent of the backlog—of which 77 received favorable determination letters.Of those 77 applicants, 38 participated in the “expedited” determination process, under which they agree to limit political activities to 40 percent of total activities, Kindell said.