IRS Releases New Form 1023

Application for Recognition of Exemption Under Section 501(c)(3)

The IRS made changes to the Form 1023-EZ application to make it easier for applicants to complete the form and to help the IRS correctly determine the applicant's tax-exempt status. Be sure to use the January 2018 form when you complete your application. The Form 1023-EZ user fee remains the same.

The changes to the Form 1023-EZ include the following:

Top of Form: You need to check the boxes that show you qualify to use Form 1023-EZ by stating that organization's gross receipts do/will not exceed $50,000 and total assets do not exceed $250,000. These requirements were listed on the Eligibility Worksheet but are now also reflected on the Form 1023-EZ.

Part III, Line 1: A text box has been added for applicants to briefly state their primary (tax-exempt) activity and mission. Don't speculate; just briefly describe your definite plans.

Part IV: You are asked if you are forming a church, school, or hospital ("institutional" nonprofits covered in the Nolo nonprofit formation books). If so, you are not eligible to use the 1023-EZ form. This requirement was listed on the Eligibility Worksheet but is now also reflected on the 1023-EZ form.

For more information on the changes, see the IRS website and the Instructions for Form 1023-EZ.

Effective date: January 19, 2018