WASHINGTON -- The Internal Revenue Service's guidance on 501(c)(3) organizations exceeds the agency's jurisdiction and will increase costs and cause delays for nonprofit health-care groups that are seeking tax-exempt status and that want to issue bonds, several lawyers said yesterday.

In effect, they said, every bond issue by a group seeking 501(d)(3) status will have to be reviewed by the IRS. But two attorneys cautioned against overreacting and said the agency may prove reasonable and flexible in implementing this attempt to prevent abuses.

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