Who files 1023ez?

Any organization that has gross receipts in each taxable year of normally not more than $5,000. Only certain organizations are eligible to apply for exemption under section 501(c)(3) using Form 1023-EZ. To determine if you are eligible to file Form 1023-EZ, you must complete the Form 1023-EZ Eligibility Worksheet.

How much does it cost to prepare Form 1023?

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.

How long does it take the IRS to approve a 1023?

between 3 and 6 months
The average processing time for Form 1023-EZ is about 2-4 weeks. By contrast, Form 1023 can take between 3 and 6 months for processing, and it could take up to a year.

Does Form 1023 have to be filed electronically?

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.

Should I file 1023 or 1023ez?

In response to complaints about severe delays in approving exempt applications, the IRS issued Form 1023-EZ in July 2014. This form is significantly easier and shorter than the Form 1023. The IRS promise to approve these applications within 6-8 weeks of filing. The Form 1023-EZ must be completed and filed online.

How long does it take to complete Form 1023-EZ?

2-4 weeks
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.

What is the difference between IRS Form 1023 and 1023-EZ?

Form 1023 is the application filed with the IRS in order to request exempt status under Section 501(c)(3). A new Form 1023-EZ was released in July 2014 to help smaller organizations seeking exempt status. Upon approval, the organization will receive a determination letter from the IRS.

How do I expedite a 501c3 application?

You can request an expedited handling of form 1023 application at the time of filing by checking the box at the end of the application. However, for expedited form 1023 processing to be granted, there must be a compelling reason to process the case ahead of others.

Can a private foundation file a 1023-EZ?

Private operating foundations and certain other organizations cannot file a Form 1023-EZ.

What is the difference between Form 1023 and 1023-EZ?

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.