IRS Introduced new 1023-EZ form for applying 501(c)(3) Tax exempt Status

 

The Internal Revenue Service  introduced a new, shorter application form to help small charities apply for 501(c)(3) tax-exempt status more easily.

 

This approach  will help reduce lengthy processing delays for small tax-exempt groups and ultimately larger organizations as well
The change cuts paperwork for charitable groups and speeds application processing so they can focus on their important work.

The new Form 1023-EZ, available  on IRS.gov, is three pages long, compared with the standard 26-page Form 1023. Most small organizations, including as many as 70 percent of all applicants, qualify to use the new streamlined form. Most organizations with gross receipts of $50,000 or less and assets of $250,000 or less are eligible.

Previously, all of these groups went through the same lengthy application process -- regardless of size. It didn't matter if you were a small soccer or gardening club or a major research organization. This process created needlessly long delays for groups, which didn’t help the groups, the taxpaying public or the IRS.

The change will allow the IRS to speed the approval process for smaller groups and free up resources to review applications from larger, more complex organizations while reducing the application backlog.

The Form 1023-EZ must be filed using pay.gov, and a $400 user fee is due at the time the form is submitted. Further details on the new Form 1023-EZ application process can be found in Revenue Procedure 2014-40.