In order for a nonprofit organization to obtain federal tax exemption status under 501(c)(3), it must apply to the Internal Revenue Service (IRS) by using form 1023. This form is long and can be very cumbersome for nonprofit organizations to complete. It can also take the IRS a while to review each application.
In an effort to streamline the process and reduce the backlog, the IRS introduced its shorter application called Form 1023-ez. This form must be completed online, and the application fee is $400.
This form is recommended for nonprofit organizations that anticipate less than $50,000 in annual gross receipts each year for the first three (3) years and total assets valued at under $250,000.
If you need help with this form or any other part of the incorporation process, please contact us.