Corporate & Business/Sep 9, 2014

IRS Streamlines Application Process for Small Charitable Organizations

In July, the Internal Revenue Service (IRS) introduced Form 1023-EZ, a shorter application form to help small charities apply for 501(c)(3) tax-exempt status.

Form 1023-EZ is only three pages, compared to the 26-page application form previously required of all charitable organizations applying for tax-exempt status. Organizations eligible to use this streamlined form include those with gross receipts of $50,000 or less and assets of $250,000 or less. The IRS estimates that 70% of all organizations applying for tax-exempt status will be able to use this less burdensome form.

The IRS currently has more than 60,000 501(c)(3) applications in its backlog. Many applications take upwards of nine months to process. Applications processed through Form 1023-EZ can take less than one month.

For a copy of Form 1023-EZ, filing instructions and other information regarding the application process, visit the IRS website at:

http://www.irs.gov/uac/About-Form-1023EZ.

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