11/18/2025

Discover Recent Developments at the IRS

Here are some things that could impact Ohio's nonprofit community

The Internal Revenue Service (IRS) plays a pivotal role in the regulation and oversight of tax-exempt charitable organizations throughout the United States. 

Recent developments include:

• Furloughs: More than 34,000 IRS workers were furloughed due to the federal government shutdown, prompting questions about the agency's timeline for issuing guidance on the implementation of the major tax bill enacted this summer, including how the agency plans to handle retroactive deductions.
• Division Reassignment: The shutdown slowed plans to disassemble the Justice Department’s Tax Division and reassign attorneys to separate civil and criminal tax offices, a move that has raised concerns about a potential reshuffling of enforcement priorities.
• Application Review: The IRS announced it would not review nonprofits’ applications for tax-exempt status during the shutdown. A backlog of Form 1023 applications could lead to longer processing times for nonprofits seeking tax-exempt status, even now that the shutdown is over.
• Direct File Eliminated: The IRS announced the elimination of the Direct File program, a government-run system designed to make it easier for taxpayers to file their taxes for free.
• New CEO: Senate Leader Schumer (D-NY), Senate Banking Committee Chair Warren (D-MA), and Senate Finance Committee Chair Wyden (D-OR) sent a letter raising questions about the appointment of Frank Bisignano to the newly created position of CEO of the IRS. The agency has always been run by a Senate-approved commissioner – which it does not currently have – and Bisignano is already head of the Social Security Administration (SSA).

To learn more about IRS updates, please select this link.