IRS Streamlined Application for Section 501c3 status

IRS Streamlined Application for Section 501c3 Status

From the State Bar of California Business Section, “Recent Developments and Trends for Exempt Organizations.”

During the summer, the IRS released Form 1023-EZ, a streamlined application for 501(c)(3) tax-exempt status, in an effort to alleviate its backlog of unprocessed applications. In comparison to the standard Form 1023, Form 1023-EZ is shorter (only three pages long) and does not require an organization to provide disclosures, instead relying upon affirmations by the organization that it complies with the requirements for 501(c)(3) status. Form 1023-EZ is only available for relatively small organizations – those whose assets do not exceed $250,000 and whose annual gross receipts do not exceed $50,000 – and may not be used by certain types of organizations, such as supporting organizations, hospitals, schools, and private operating foundations.