Lower Application Fee for 1023-EZ Charity Filers
In 2014, the IRS introduced a new streamlined tax-exempt application that gave certain charitable organizations the opportunity to bypass the longer Form 1023 tax exempt application. Some organizations now can apply for tax-exempt status through the Form 1023-EZ. Benefits of Form 1023-EZ include its shorter length and fewer questions regarding the details of a charity's specific operations. However, there are some restrictions as to whether a charitable organization qualifies to submit a Form 1023-EZ. The IRS has provided an Eligibility Worksheet (pages 11-20 of the Form 1023-EZ instructions) that taxpayers can complete in order to determine if a charity is eligible to use Form 1023-EZ.
On May 31, 2016, the IRS took another step forward in its attempt to assist charitable organizations. Effective on July 1, 2016, the application fee for Form 1023-EZ will be reduced from $400 to $275. The application fee for the original Form 1023 will remain at either $400 or $850, depending on projected or actual gross revenue.
If you have any questions regarding a charitable organization or tax-exempt status, please contact a Foster Swift tax attorney.
John brings a unique perspective to Foster Swift with his practical experience as an entrepreneur, business owner, and manager. He focuses in the areas of business, tax, intellectual property and entertainment.View All Posts by Author ›