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 shorter 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 1023-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.
If you need assistance filling in the Form 1023-EZ, contact one of HomeschoolCPA’s Recommended Consultants or this webinar will walk you though it line-by line.
This 90 minute webinar 501c3 Application for Homeschool Nonprofits will explain the pros and cons of tax exempt status, what is needed before applying for tax exempt status, the cost and steps to take, and an explanation of the IRS Form 1023-EZ line-by-line. All created for homeschool groups by CPA Carol Topp.
Carol Topp, CPA
Helping Homeschool Leaders