New IRS Form 1023-EZ make applying for tax exempt status easier

Form1023-EZ page 1

 

On July 1, 2014, the IRS announced it a new Form 1023-EZ to make applying for 501(c)(3) tax exempt status easier.

This shorter form makes the IRS approval process much quicker. Typically 2-4 weeks instead of 6-12 months.

Is your nonprofit organization eligible to file the shorted form?

The instructions include an eligibility checklist of 30 questions. Answering YES to any one of the question makes you ineligible to use the Form 0123-EZ. You must use the full version Form 1023.

Most charitable nonprofit organizations with annual gross receipts of $50,000 or less and assets of $250,000 or less are eligible to file the Form 1023-EZ.

Schools, churches and hospitals must still file the full version Form 1023, even if they are under the dollar thresholds.

Organizations converting from a for-profit business to a nonprofit must file the full version Form 1023, even if they are under the dollar thresholds.

The new 1023-EZ form is filed online at  www.pay.gov, accompanied by a $275 user fee. You can see what the Form 1023-EZ looks like here.

Parts II and IV might be a little confusing. The instructions for this 3 page form is 20 pages long!

If you need assistance filling in the Form 1023-EZ, I help homeschool organizations by offering a service to review your organizing documents for compliance and guide you through the form.

Contact me to arrange a phone consultation to go over your Form 1023-EZ.

Carol Topp, CPA

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