IRS rolls out new 1023-EZ for exempt applications

IRS rolls out new 1023-EZ for exempt applications
Last week, the IRS gave the official launch to the new Form 1023-EZ, a shorter version of the traditional application for groups seeking 501(c)(3) exempt status. The tax agency announced a streamlined version was forthcoming in March and solicited public comments. According to the press release, as many as 70 percent of 501(c)(3) hopefuls are eligible to submit the three-page form, edited down from the 26-page original, which is available to certain organizations with gross receipts up to $50,000 and assets up to $250,000. IRS Commissioner John Koskinen said the change will reduce wait times for applicants and enable his agency to “devote more compliance activity on the back end to ensure groups are actually doing the charitable work they apply to do.” Unlike its longer counterpart, the Form 1023-EZ must be filed electronically. Some sector leaders raise concerns about the new form, including the fact that applicants miss the educational benefits inherent in completing the full Form 1023. Source: IRS Press Release, BNA Daily Tax Report

Learn more about the 1023-EZ
Theresa A. Cameron
Local Arts Services
IRS rolls out new 1023-EZ for exempt applications