IRS: New Short-Form Application for 501(C)(3) Status

Monday, July 21, 2014

The Internal Revenue Service (IRS) has introduced a new, shorter application form to help small charities apply for tax-exempt status more easily.  The new Form 1023-EZ is three pages long, compared with the standard 26-page Form 1023.  Organizations with gross receipts of $50,000 or less and assets of $250,000 or less are encouraged to use this form.  Additional information about the form is available here.

This is part of the effort from the IRS to speed up the aproval process for new tax-exempt groups.  Currently, the agency is sitting on a backlog of more than 60,000 501(C)(3) applications.  The IRS estimates that up to 70 percent of organizations applying for 501(C)(3) status will be eligible to use the new streamlined for.

- from the Michigan Society of Association Executives, July 2014

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