IRS Raises User Fees for Nonprofit Tax Exemption Applications

The IRS has increased user fees for all applications for nonprofit tax exempt status (IRS Form 1023, Form 1024, and Form 1028) postmarked after January 3, 2010. The new fee schedule is as follows:

• $400 for organizations whose gross receipts are $10,000 or less annually over a 4-year period (up from $300)
• $850 for organizations whose gross receipts exceed $10,000 annually over a 4-year period (up from $750)
• $3,000 for group exemption letters (up from $900).

The fees for Form 1023 applications will change again in 2010 after the IRS launches Cyber Assistant, its new Web-based software program for completing the Form 1023 application. The program is designed to help 501(c)(3) applicants prepare the Form 1023 application by soliciting information about the applicant and creating responses based on the user's answers to questions. Cyber Assistant will be available sometime during 2010, at which point the user fees for Form 1023 applications will be:

• $200 for organizations using Cyber Assistant (regardless of size) to prepare their Form 1023
• $850 for all other organizations not using Cyber Assistant (regardless of size) to prepare their Form 1023.

For more information, see Increase in EO Application Fees -- 2010, on the IRS website at www.irs.gov/charities/article/0,,id=213932,00.html.