Tax Law Blog
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.
