The IRS announced yesterday the new Form 1023-EZ is available for filing. This form allows smaller nonprofits to apply for 501(c)(3) status online by completing a three page form versus the 26 pages contained in the full Form 1023. Most organizations with gross receipts of $50,000 or less and assets of $250,000 or less are eligible to use the short form.
There has been a lot of press recently concerning the extended wait time nonprofits are experiencing prior to receiving their approval of tax-exempt status. The 1023-EZ will allow for faster processing and free-up IRS resources in a push to reduce the backlog of applications, which is currently at more than 60,000.
Small nonprofits will be required to complete an eligibility checklist prior to completing the 1023-EZ. In addition, a $400 user fee is due upon submission of the form.