Irs Form 1023-ez

What is irs form 1023-ez?

IRS Form 1023-EZ is a streamlined application form used by nonprofit organizations to apply for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code. This form is designed to simplify the process for smaller organizations with annual gross receipts less than $50,000 and total assets less than $250,000. It is an alternative to the longer and more complex Form 1023, allowing eligible organizations to apply for tax-exempt status more efficiently and with less paperwork.

What are the types of irs form 1023-ez?

There is only one type of IRS Form 1023-EZ, which is the streamlined application form for tax-exempt status under Section 501(c)(3). This form is specifically designed for smaller nonprofit organizations that meet certain eligibility criteria. It is important for organizations to determine if they qualify for the streamlined process before completing the form.

Organizations with annual gross receipts less than $50,000 and total assets less than $250,000 can use Form 1023-EZ to apply for tax-exempt status under Section 501(c)(3).

How to complete irs form 1023-ez

Completing IRS Form 1023-EZ involves several steps to ensure accuracy and compliance. Here is a step-by-step guide to help you complete the form:

01
Determine eligibility: Make sure your organization meets the eligibility criteria for using Form 1023-EZ.
02
Gather necessary information: Collect all the required information and supporting documents for the form, including details about your organization's purpose, activities, finances, and governance.
03
Fill out the form: Complete each section of the form accurately and thoroughly, providing all the requested information.
04
Review and double-check: Carefully review the completed form to ensure all information is accurate and up-to-date.
05
Submit the form: Once you are confident in the accuracy of your application, submit the form to the IRS for processing.

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Questions & answers

Form 1023 must be completed online. The timeline for IRS review and approval can take 5 to 8 months. Form 1023-EZ does not require nearly the amount of information as Form 1023 does and also costs much less. You can file for tax-exempt status at a much lower cost of $275 using Form 1023-EZ.
The user fee for Form 1023 is $600. The user fee for Form 1023-EZ is $275. The user fees must be paid through Pay.gov when the application is filed.
More In Forms and Instructions Organizations must electronically file this form to apply for recognition of exemption from federal income tax under section 501(c)(3). Note. You may be eligible to file Form 1023-EZ, a streamlined version of the application for recognition of tax exemption.
How Long Will It Take? On average, the IRS is currently processing Form 1023-EZ in 2-4 weeks. If your 501(c)(3) application is approved, you will receive a Determination Letter in the mail as confirmation.
To file Form 1023-EZ, you must first create an account at www.pay.gov. Once you have registered with Pay.gov, you will be able to create and save a draft of the Form 1023-EZ which you may then submit electronically through the Pay.gov website after paying the user fee.
In the event that you exceed the $50,000 threshold, the IRS can retroactively revoke your organization's 501(c)(3) status if you are unable to make a persuasive case that you met the Form 1023-EZ eligibility criteria at the time you applied.