The IRS 1023-EZ form is a streamlined application designed for certain qualifying small public charities and nonprofit organizations seeking tax-exempt status under Section 501(c)(3) of the Internal Revenue Code. This simplified version aims at reducing the paperwork and the processing time involved in applying for tax exemption. For those organizations that meet the eligibility criteria, embarking on the process of filling out the form is made easier by clicking the button below.
For many aspiring nonprofits, navigating the labyrinth of legal requirements and paperwork could be a daunting challenge, but the IRS 1023-EZ form stands out as a beacon of hope for smaller charities. This streamlined version of the more comprehensive IRS Form 1023, designed for tax-exempt status applications, significantly simplifies the process for eligible organizations. It not only lessens the burden of paperwork but also accelerates the review times, allowing these groups to focus on what truly matters - their mission. The form's eligibility criteria ensure that only smaller nonprofits, typically those expecting less than $50,000 in annual gross receipts and with assets under $250,000, can take this expedited route. By tailoring the process to the needs of these smaller entities, the IRS acknowledges the unique challenges they face and provides a path that encourages their success and growth. Understanding the nuances and proper completion of this form is crucial for those seeking a smoother journey through the IRS's requirements for gaining and maintaining tax-exempt status.
You must complete the Form 1023-EZ Eligibility Worksheet in the Instructions for Form 1023-EZ to determine if you are eligible to file this form. Form 1023-EZ is filed electronically only on Pay.gov.
Go to www.irs.gov/form1023ez for additional filing information.
Form 1023-EZ
(June 2014)
Department of the Treasury Internal Revenue Service
Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code
Do not enter social security numbers on this form as it may be made public.
Information about Form 1023-EZ and its separate instructions is at www.irs.gov/form1023.
OMB No. 1545-0056
Note: If exempt status is approved, this application will be open for public inspection.
Check this box to attest that you have completed the Form 1023-EZ Eligibility Worksheet in the current instructions, are eligible to apply for exemption using Form 1023-EZ, and have read and understand the requirements to be exempt under section 501(c)(3).
Part I Identification of Applicant
1a Full Name of Organization
bAddress (number, street, and room/suite). If a P.O. box, see instructions.
cCity
dState
eZip Code + 4
2
Employer Identification Number
3 Month Tax Year Ends (MM)
4 Person to Contact if More Information is Needed
5
Contact Telephone Number
6 Fax Number (optional)
7 User Fee Submitted
8List the names, titles, and mailing addresses of your officers, directors, and/or trustees. (If you have more than five, see instructions.)
First Name:
Last Name:
Title:
Street Address:
City:
State:
Zip Code + 4:
Last Nam :
9 a Organization's Website (if available):
b Organization's Email (optional):
Part II Organizational Structure
1To file this form, you must be a corporation, an unincorporated association, or a trust. Check the box for the type of organization.
Corporation
Unincorporated association
Trust
Check this box to attest that you have the organizing document necessary for the organizational structure indicated above.
(See the instructions for an explanation of necessary organizing documents.)
3Date incorporated if a corporation, or formed if other than a corporation (MMDDYYYY):
4State of incorporation or other formation:
5Section 501(c)(3) requires that your organizing document must limit your purposes to one or more exempt purposes within section 501(c)(3).
Check this box to attest that your organizing document contains this limitation.
6Section 50 (c)(3) requires that your organizing document must not expressly empower you to engage, otherwise than as an insubstantial part of your activities, in activities that in themselves are not in furtherance of one or more exempt purposes.
Check this box to attest that your organizing document does not expressly empower you to engage, otherwise than as an insubstantial part of your activities, in activities that in themselves are not in furtherance of one or more exempt purposes.
7Section 501(c)(3) requires that your organizing document must provide that upon dissolution, your remaining assets be used exclusively for secti n 501(c)(3) exempt purposes. Depending on your entity type and the state in which you are formed, this requirement may be satisfied by
peration of state law.
Check this box to attest that your organizing document contains the dissolution provision required under section 501(c)(3) or that you do not need an express dissolution provision in your organizing document because you rely on the operation of state law in the state in which you are formed for your dissolution provision.
For Paperwork Reduction Act Notice, see the instructions.
Catalog No. 66267N
Form 1023-EZ (6-2014)
Page 2
Part III Your Specific Activities
1Enter the appropriate 3-character NTEE Code that best describes your activities (See the instructions):
2 To qualify for exemption as a section 501(c)(3) organization, you must be organized and operated exclusively to further one or more f the following purposes. By checking the box or boxes below, you attest that you are organized and operated exclusively to further the purp ses indicated. Check all that apply.
Charitable
Religious
Educational
Scientific
Literary
Testing for public safety
To foster national or international amateur sports competition
Prevention of cruelty to children or animals
3To qualify for exemption as a section 501(c)(3) organization, you must:
•Refrain from supporting or opposing candidates in political campaigns in any way.
•Ensure that your net earnings do not inure in whole or in part to the benefit of private shareholders or individuals (that is, board members, officers, key management employees, or other insiders).
•Not further non-exempt purposes (such as purposes that benefit private interests) more than insubstantially.
•Not be organized or operated for the primary purpose of conducting a trade or business that is not related to y ur exempt purpose(s).
• Not devote more than an insubstantial part of your activities attempting to influence legislation or, if ou made a section 501(h) election, not normally make expenditures in excess of expenditure limitations outlined in section 501(h).
•Not provide commercial-type insurance as a substantial part of your activities.
Check this box to attest that you have not conducted and will not conduct activities that violate these prohibitions and restrictions.
4
Do you or will you attempt to influence legislation?
Yes
No
(If yes, consider filing Form 5768. See the instructions for more details.)
Do you or will you pay compensation to any of your officers, directors, or trustees?
(Refer to the instructions for a definition of compensation.)
6
Do you or will you donate funds to or pay expenses for individual(s)?
7
Do you or will you conduct activities or provide grants or other assistance to individu l(s) or organization(s) outside the
8
United States?
Do you or will you engage in financial transactions (for example, loans, payme ts, rents, etc.) with any of your officers,
directors, or trustees, or any entities they own or control?
9
Do you or will you have unrelated business gross income of $1,000 or m e during a tax year?
10
Do you or will you operate bingo or other gaming activities?
11
Do you or will you provide disaster relief?
Part IV is designed to classify you as an organization thatelectronicallyis either private foundation or a public charity. Public charity status is a more favorable tax status than private foundation status.
Part IV Foundation Classification
1 If you qualify for public charity status, check the appropriate box (1a – 1c below) and skip to Part V below.
a
Check this box to attest that you normally r c ive at least one-third of your support from public sources or you normally receive at least 10 percent of your support from public sourc s and you have other characteristics of a publicly supported organization. Sections 509(a)(1) and 170(b)(1)(A)(vi).
b
Check this box to attest that you normally receive more than one-third of your support from a combination of gifts, grants, contributions, membership fees, and gross rece pts (from permitted sources) from activities related to your exempt functions and normally receive not more than one-third of your support from nve tment income and unrelated business taxable income. Section 509(a)(2).
c
Check this box to attest that you are operated for the benefit of a college or university that is owned or operated by a governmental unit.
Sections 509(a)(1) and 170(b)(1)(A)(iv).
2If you are not described in items 1a – 1c above, you are a private foundation. As a private foundation, you are required by section 508(e) to have specific provisions in your organizing document, unless you rely on the operation of state law in the state in which you were formed to meet these requirements. These specific provisions require that you operate to avoid liability for private foundation excise taxes under sections 4941-4945.
Check this box to attest that your organizing document contains the provisions required by section 508(e) or that your organizing document does not need to include the provisions required by section 508(e) because you rely on the operation of state law in your particular state to meet the requirements of section 508(e). (See the instructions for explanation of the section 508(e) requirements.)
Page 3
Part V Reinstatement After Automatic Revocation
Complete this section only if you are applying for reinstatement of exemption after being automatically revoked for failure to file required annual returns or notices for three consecutive years, and you are applying for reinstatement under section 4 or 7 of Revenue Procedure 2014-11. (Check only one box.)
1
Check this box if you are seeking retroactive reinstatement under section 4 of Revenue Procedure 2014-11. By checking this box, you attest that you meet the specified requirements of section 4, that your failure to file was not intentional, and that you have put in place procedures to file required returns or notices in the future. (See the instructions for requirements.)
Check this box if you are seeking reinstatement under section 7 of Revenue Procedure 2014-11, effective the date you re filling this application.
Part VI
Signature
I declare under the penalties of perjury that I am authorized to sign this application on behalf of the above organization and that I have examined this application, and to the best of my knowledge it is true, correct, and complete.
PLEASE SIGN HERE
(Type name of signer)
F(Signature of Officer, Director, Trustee, or other authorized official)
(Type title or authority of signer)
F(Date)
Printed on recycled paper
When you're ready to apply for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code, the IRS 1023-EZ form is a streamlined version that many smaller charities can use. It simplifies the process, making it less daunting. Once submitted, the IRS will review your application to determine if your organization meets the criteria for tax-exempt status. It's crucial to fill out the form accurately to avoid delays or rejection. Here are the steps to complete the 1023-EZ form:
After submitting the form, it's a waiting game. The IRS will review your application and may contact you if additional information is needed. Once your application is approved, you'll receive a determination letter from the IRS confirming your tax-exempt status. Keep this letter for your records, as you may need it to prove your tax-exempt status in the future. Remember, achieving tax-exempt status is a critical step for your organization, allowing you to focus on its mission with the benefit of tax relief.
What is the IRS 1023-EZ form?
The IRS 1023-EZ form, also known as the Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, is a simplified application used by qualifying small organizations seeking tax-exempt status. The form is designed to make the process easier and faster for small charities to obtain 501(c)(3) status, which makes contributions to them tax-deductible for donors and exempts the organizations from federal income tax.
Who is eligible to file the IRS 1023-EZ form?
Eligibility to file the IRS 1023-EZ form is limited to organizations with gross receipts of $50,000 or less and assets valued at $250,000 or less. The form is tailored for small charities, including corporations, unincorporated associations, or trusts that have not previously had their tax-exempt status revoked. It is important for organizations to review the eligibility checklist provided in the Form 1023-EZ instructions before applying.
How can an organization file the IRS 1023-EZ form?
Organizations must fill out the form online through the IRS website. The 1023-EZ must be submitted electronically, and a filing fee is required at the time of submission. The fee amount can vary, so it is recommended to check the current fee before filing. After submitting the form and the fee, the IRS will review the application and notify the organization of their decision.
What information is required on the IRS 1023-EZ form?
The form requires basic information about the organization, including its name, mailing address, EIN (Employer Identification Number), and the date it was established. It also asks for a brief description of the organization’s activities, its mission, and the names of its officers, directors, and trustees. Additionally, the organization must attest that it meets the 501(c)(3) requirements for tax-exempt status and that its activities will be lawful and not for the benefit of private interests.
How long does it take to get a decision from the IRS after submitting the 1023-EZ form?
Processing times for the IRS 1023-EZ form can vary depending on the volume of applications the IRS is handling. Generally, organizations can expect to receive a decision within 2 to 4 weeks. This is significantly shorter than the processing time for the standard Form 1023 application, which can take several months. The IRS aims to provide a streamlined process through the 1023-EZ form, but response times are subject to change based on current workloads.
What happens if an organization is approved for tax-exempt status using the IRS 1023-EZ form?
Upon approval, the organization will receive a letter from the IRS confirming its tax-exempt status under Section 501(c)(3). This letter is crucial for establishing the organization's tax-exempt status with donors, state tax agencies, and others. It allows donors to make tax-deductible contributions to the organization. Additionally, the organization is exempt from federal income taxes, although it may still be responsible for other taxes such as employment taxes. Maintaining compliance with IRS regulations and filing annual returns is essential to preserve tax-exempt status.
One common mistake people make when filling out the IRS 1023-EZ form is not thoroughly checking their eligibility before starting the application process. The 1023-EZ form is designed for smaller charities that meet specific criteria. If these criteria are not met, the application may be rejected, resulting in wasted time and effort. Applicants should review the eligibility checklist carefully to ensure they qualify before proceeding.
Another error involves the incorrect calculation of gross receipts. The IRS sets a limit on the amount of gross receipts an organization can have to qualify for filing Form 1023-EZ. Some applicants fail to accurately calculate their gross receipts or misunderstand what constitutes gross receipts, leading to incorrect reporting. This mistake can not only complicate the application process but also possibly result in legal issues down the line.
Many applicants neglect to thoroughly describe their mission or activities. The IRS uses the information provided on the form to determine if the organization meets the standards for a tax-exempt status. A vague or incomplete description of the organization’s mission and activities can lead to delays or the denial of the application. It’s important to be clear and detailed in these sections to facilitate a smooth review process.
Not checking the availability of the organization's name can also pose a problem. Before submitting the 1023-EZ form, it is crucial to ensure that the chosen name is not already in use or too similar to that of another entity. Failure to do so can result in the refusal of the application. It's wise to search state and federal databases to check the name's availability.
Applicants sometimes incorrectly assume that no further state compliance is required upon submitting Form 1023-EZ. However, obtaining federal tax-exempt status does not automatically grant exemption from state taxes. Organizations must often register with their state’s charity bureau or similar entity and may need to apply separately for state tax exemptions. This oversight can lead to unintended legal and financial consequences.
Finally, neglecting to maintain proper records or to understand the ongoing reporting requirements is a significant error. Even after successfully obtaining tax-exempt status, organizations are required to keep detailed records and may need to file annual returns with the IRS. Failure to comply with these requirements can result in fines, penalties, or the revocation of tax-exempt status. Being proactive about understanding and adhering to these requirements is essential for maintaining good standing with the IRS.
Filing for tax-exempt status with the IRS is a significant step for many nonprofit organizations. While the IRS 1023-EZ form streamlines the application process for small nonprofits seeking 501(c)(3) status, several other documents often play a crucial role in supporting the application or are required for compliance and operational functionalities post-approval. Let's explore some of these key documents that are frequently used alongside the IRS 1023-EZ form.
Together, these documents form a comprehensive portfolio that supports not only the application for tax-exempt status but also the foundation for good governance practices of the nonprofit. Each document serves to fulfill both legal requirements and operational necessities, ensuring that the organization is well-prepared to fulfill its mission effectively and comply with the tax laws of the United States.
The IRS 1023-EZ form, utilized by smaller charities seeking tax-exempt status, parallels the structure and purpose of the IRS Form 1023 in several respects. Form 1023, more comprehensive than its EZ counterpart, demands detailed information regarding organizational structure, activities, and financial projections, catering to larger or more complex entities. Both forms assess eligibility for exemption under Section 501(c)(3) of the Internal Revenue Code. However, the streamlined nature of the 1023-EZ allows for a quicker, more simplified submission process, mirroring the distinction between the two in terms of the depth and breadth of information required.
Similarly, the IRS Form 990 series, which nonprofits must file annually to report their financial activities, echoes aspects of the 1023-EZ. Specifically, Form 990-N (the "e-Postcard") offers a simplified reporting method for smaller organizations, akin to the 1023-EZ's simplification for initial tax-exemption applications. Both forms serve as streamlined alternatives to more detailed filings, emphasizing ease of use for qualifying small entities while ensuring compliance with federal tax laws. This parallel underscores a shared goal of reducing administrative burdens on smaller nonprofits, facilitating their focus on mission over paperwork.
The IRS 1023-EZ form also shares characteristics with state-level nonprofit incorporation forms. These forms, required for establishing a nonprofit corporation in a specific state, typically request basic information about the organization, such as its name, purpose, registered agent, and principal office. Much like the 1023-EZ facilitates a simplified path to federal tax-exempt status, state incorporation forms provide a foundational step towards legal recognition at the state level, streamlining the process for smaller or less complex organizations aiming to operate within a specific jurisdiction.
Lastly, the 1023-EZ bears semblance to the IRS Form SS-4, the Application for Employer Identification Number (EIN). Every organization, regardless of size, must obtain an EIN for tax purposes. The process of applying for an EIN through Form SS-4 is straightforward and can be completed online, mirroring the ease and efficiency of the 1023-EZ for those seeking tax-exempt status. Both the 1023-EZ and SS-4 emphasize accessibility and user-friendliness, acknowledging the varied capacities and resources of different organizations while fulfilling essential administrative requirements.
Filling out the IRS 1023-EZ form, which is used by qualifying small tax-exempt organizations seeking 501(c)(3) status, requires careful attention to detail and understanding of your organization's eligibility. Here are essential dos and don'ts to help guide you through the process effectively and efficiently.
Do:
Don't:
Filing for tax-exempt status in the United States can be daunting, and the IRS 1023-EZ form is often misunderstood. Here, we will clear up some common misconceptions to give you a clearer path forward.
Understanding these misconceptions can help you navigate the process of applying for tax-exempt status with more confidence. Always ensure you meet the criteria before applying, and consult the IRS website or a tax professional if you're unsure about any part of the process.
The IRS 1023-EZ form is a streamlined version of the 1023 form, used by smaller organizations seeking tax-exempt status under Section 501(c)(3) of the Internal Revenue Code. Below are key takeaways regarding its completion and usage.
The form is designed for small charities with gross receipts of $50,000 or less and assets of $250,000 or less. This makes the application process quicker and less burdensome for small entities aiming for tax-exempt status.
Applicants must complete the form online through the IRS website, ensuring all information is accurate and up-to-date. This digital submission process facilitates a more efficient review by the IRS.
Organizations need an Employer Identification Number (EIN) before filling out the form. The EIN is a requirement for the identification of the business entity in its future dealings with the IRS.
A user fee must be submitted with the 1023-EZ form. This fee is subject to change, so applicants should verify the current amount required on the IRS website to avoid application delays or rejections.
Approval times can vary, but organizations typically receive a determination letter from the IRS within weeks, as opposed to the months it often takes for the standard Form 1023. However, applicants should prepare for possible inquiries or requests for additional information from the IRS, which could extend this timeline.
Completing the IRS 1023-EZ form represents a critical step for small nonprofits in achieving tax-exempt status, easing their financial burdens and allowing them to focus more on their missions. It is vital, however, that organizations ensure they meet all eligibility criteria before submitting this simplified form.
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