In some cases, due to many requests, the Internal Revenue Service (IRS) changes some paperwork to simplify its processes, like the Form 1023-ez, which is a “streamlined” type of Form 1023.
The last one is used to apply for recognition as a tax-exempt organization under Section 501c3 (non-profit organizations); however, this process may be considered tedious to applicants since it is a 28 pages application.
Consequently, the IRS created Form 1023-ez that has the same purpose of Form 1023, but it is only for certain sorts of non-profit organizations, and it is easier to complete.
Requirements to file Form 1023-ez
Before you fill Form 1023-ez, you need to be sure if your non-profit organization meets the specific conditions that the IRS requires, such as:
- Your total assets must be valued in less than $250,000.
- The annual grosses receipts must be less than $50,000 in the past three years (if any).
- The annual grosses projection must be less than $50,000 for the next three years.
- Your non-profit must be created in the United States territory.
These are the general conditions, but the complete list is available in the Form 1023-ez Eligibility Worksheet issued by the IRS to determine which organization can apply; check specifically from pages 13 to 20.
In few words, if you answer “Yes” to any of the questions of the list, you will not be able to apply, and you should complete the regular Form 1023.
➡ In this article, you may find more information about it: How to apply 501c3
How to apply?
The only way to apply and fill Form 1023-ez is by completing the application electronically on the website www.pay.gov and scroll down to “Apply for IRS 1023 EZ”.
Also, you need to create an account to start the process. Here is the link to do it: https://www.pay.gov/public/registration.
If you already have an account, sign up, and follow the steps to fill the application. Click here: https://www.pay.gov/public/login.
In case you forgot your password or your username, you will see below the “Sign In” button some of the options to recover them.
On the other hand, in the application form, the IRS will ask you about:
Identification Information
- Full name of the organization.
- Your mailing address.
- Your Employer Identification Number (EIN): You have to complete this box only if you already have one, in case you do not, read here: https://www.irs.gov/pub/irs-pdf/p1635.pdf.
- The month when your tax year ends.
- Contact number of a person related to the organization in case more information is needed.
Organizational Structure
- Your entity type.
- Your formation date.
- The state where the organization was formed.
- Clause of Purpose.
- Clause of Dissolution.
Specific Activities
- A short description of your non-profit organization’s purpose.
- Your National Taxonomy of Exempt Entities (NTEE) code.
- Your exempt purposes.
- A declaration that states you do not realize prohibited or restricted activities.
Foundation Classification
Reinstatement After Automatic Revocation
- You have to check this box only if your tax-exempt status under section 6033(j)(1) was previously denied.
Signature and the date of the application.
In this link, you will find more details about Form 1023-ez. Note that we only provide it for you only to see it, because you must complete it electronically.
How much does it cost to file Form 1023-ez?
The amount you will have to pay as the user fee for applying to Form 1023-EZ is $275.
How long is the application process?
The IRS is currently processing Form 1023-ez applications in a 2 to 4 weeks estimated time. In case your application is approved, you will be notified by an email that contains the Determination Letter.
Remember that, if you have any questions regarding the online application process, you can read the instructions here: https://www.irs.gov/forms-pubs/about-form-1023-ez.