Beginning July 1, 2016, the IRS has changed the User Fee for IRS Form 1023-EZ from $400 to $275 for all applicants. This new fee applies only to those Form 1023-EZ applications prepared and submitted after July 1, 2016.
In addition to lowering the application fee, we also expect the IRS to add several new safeguards to the Form 1023-EZ application process to continue discouraging non-qualified applications. These new safeguards could include revisions to the actual Form 1023-EZ and increased follow-up correspondence with the IRS to verify appropriate formation documents and tax exempt provisions contained within those formation documents (Articles of Incorporation and Bylaws). Overall, we expect the IRS to be more involved in checking in with applicants during the Form 1023-EZ review process. To date, we have noticed more instances where the IRS requests copies of the applying organization’s formation documents, narrative description of activities, and three years of projected financial budgets.
If you are beginning the 501c3 application process yourself, or have questions about which form (and user fee payment) is appropriate for you to submit, please contact us directly at 800.268.4388 or you may email us at firstname.lastname@example.org . We will be quick to respond and we’re always glad to help!