How is the IRS handling exemption applications by RHIOs? The Exempt Organizations Division of the IRS accepts applications for exemption submitted by RHIOs seeking exemption under section 501(c)(3). The IRS is reviewing all applications involving RHIOs in light of the requirements of section 501(c)(3) along with the legislation from the American Recovery and Reinvestment Act of 2009. Each determination is being made on a facts and circumstances basis.
