The Internal Revenue Service has released a shorter application form for non-profit organizations applying for tax-exempt status under Section 501(c)(3). Form 1023-EZ (Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code) simplifies the process of obtaining Section 501(c)(3) tax-exempt status. Form 1023-EZ is three pages (compared to the twenty-three page Form 1023) and is filed online.
Most non-profit organizations with annual gross receipts equal to or less than $50,000.00 and total assets equal to or less than $250,000.00 should be eligible to file Form 1023-EZ. The instructions to Form 1023-EZ contain an eligibility worksheet to determine whether the non-profit organization is eligible to file Form 1023-EZ. If eligible, the applicant must first register for an account on pay.gov (in order to pay the user fee for Form 1023-EZ) before completing Form 1023-EZ online.
For more information on this article or applying for tax-exempt status, please contact Theodore F. Claypoole at 610.692.1371 or tclaypoole@utbf.com.
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