New IRS Form 1023EZ Helps Small Charities Apply for 501(c)(3) Tax-Exempt Status

Question: Is there a faster way to obtain tax-exempt status for my charity?

Answer: Currently, the IRS has more than 60,000 501(c)(3) applications in its backlog, with many of them pending for nine months. IRS Form 1023 is a 26-page monster and requires on average 100 hours of time to complete for layman and a considerable amount of time even for experienced non-profit attorneys.

In an effort to reduce its backlog and streamline the process for smaller charities, the IRS recently introduced Form 1023EZ. If your charitable organization has gross receipts that are less than $50,000 and assets of $250,000 or less, filing IRS Form 1023EZ may just be the ticket to obtaining tax-exempt status more quickly and with a reduced bill from your attorney.

The new EZ form must also be filed online, but that’s a draw not a detraction for most.

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