Contents
The IRS 1023-EZ form serves as a streamlined application for small organizations seeking tax-exempt status under Section 501(c)(3) of the Internal Revenue Code. Designed to simplify the process for qualifying nonprofits, this form is available to organizations with annual gross receipts of $50,000 or less and total assets not exceeding $250,000. By utilizing the 1023-EZ, applicants can bypass the more complex and lengthy standard Form 1023, thus expediting their journey toward obtaining recognition as a charitable entity. The form requires organizations to provide essential information, such as a brief description of their activities, a statement of their purpose, and confirmation of their eligibility. Importantly, the 1023-EZ must be filed electronically, which not only enhances efficiency but also ensures that applicants receive timely feedback on their submissions. Understanding the nuances of this form is crucial for any organization aiming to navigate the complexities of nonprofit establishment while adhering to IRS regulations.
Preview - IRS 1023-EZ Form
Form 1023-EZ
(June 2014)
Streamlined Application for Recognition of Exemption
Under Section 501(c)(3) of the Internal Revenue Code
a
Do not enter social security numbers on this form as it may be made public.
a
Information about Form 1023-EZ and its separate instructions is at www.irs.gov/form1023.
Department of the Treasury
Internal Revenue Service
OMB No. 1545-0056
Note: If exempt status is
approved, this application will
be open for public inspection.
Check this box to attest that you have completed the Form 1023-EZ Eligibility Worksheet in the current instructions, are eligible to apply
for exemption using Form 1023-EZ, and have read and understand the requirements to be exempt under section 501(c)(3).
Part I
Identification of Applicant
1a Full Name of Organization
b Address (number, street, and room/suite). If a P.O. box, see instructions. c City d State e Zip Code + 4
2 Employer Identification Number 3 Month Tax Year Ends (MM)
4 Person to Contact if More Information is Needed
5 Contact Telephone Number 6 Fax Number (optional) 7 User Fee Submitted
8 List the names, titles, and mailing addresses of your officers, directors, and/or trustees. (If you have more than five, see instructions.)
First Name: Last Name: Title:
Street Address: City:
State: Zip Code + 4:
First Name: Last Name: Title:
Street Address: City:
State: Zip Code + 4:
First Name: Last Name: Title:
Street Address:
City:
State: Zip Code + 4:
First Name: Last Name: Title:
Street Address: City:
State: Zip Code + 4:
First Name: Last Name: Title:
Street Address: City:
State:
Zip Code + 4:
9 a Organization's Website (if available):
b Organization's Email (optional):
Part II
Organizational Structure
1 To file this form, you must be a corporation, an unincorporated association, or a trust. Check the box for the type of organization.
Corporation Unincorporated association
Trust
2
Check this box to attest that you have the organizing document necessary for the organizational structure indicated above.
(See the instructions for an explanation of necessary organizing documents.)
3 Date incorporated if a corporation, or formed if other than a corporation (MMDDYYYY):
4 State of incorporation or other formation:
5 Section 501(c)(3) requires that your organizing document must limit your purposes to one or more exempt purposes within section 501(c)(3).
Check this box to attest that your organizing document contains this limitation.
6
Section 501(c)(3) requires that your organizing document must not expressly empower you to engage, otherwise than as an insubstantial part of
your activities, in activities that in themselves are not in furtherance of one or more exempt purposes.
Check this box to attest that your organizing document does not expressly empower you to engage, otherwise than as an insubstantial
part of your activities, in activities that in themselves are not in furtherance of one or more exempt purposes.
7
Section 501(c)(3) requires that your organizing document must provide that upon dissolution, your remaining assets be used exclusively for
section 501(c)(3) exempt purposes. Depending on your entity type and the state in which you are formed, this requirement may be satisfied by
operation of state law.
Check this box to attest that your organizing document contains the dissolution provision required under section 501(c)(3) or that you do
not need an express dissolution provision in your organizing document because you rely on the operation of state law in the state in which
you are formed for your dissolution provision.
For Paperwork Reduction Act Notice, see the instructions.
Catalog No. 66267N
Form 1023-EZ (6-2014)
Form 1023-EZ is filed electronically only on Pay.gov.
You must complete the Form 1023-EZ Eligibility Worksheet in the Instructions for Form 1023-EZ to
determine if you are eligible to file this form. Form 1023-EZ is filed electronically only on Pay.gov.
Go to www.irs.gov/form1023ez for additional filing information.
Form 1023-EZ (6-2014)
Page 2
Part III
Your Specific Activities
1 Enter the appropriate 3-character NTEE Code that best describes your activities (See the instructions):
2
To qualify for exemption as a section 501(c)(3) organization, you must be organized and operated exclusively to further one or more of the
following purposes. By checking the box or boxes below, you attest that you are organized and operated exclusively to further the purposes
indicated. Check all that apply.
Charitable Religious Educational
Scientific Literary Testing for public safety
To foster national or international amateur sports competition Prevention of cruelty to children or animals
3 To qualify for exemption as a section 501(c)(3) organization, you must:
• Refrain from supporting or opposing candidates in political campaigns in any way.
• Ensure that your net earnings do not inure in whole or in part to the benefit of private shareholders or individuals (that is, board members,
officers, key management employees, or other insiders).
• Not further non-exempt purposes (such as purposes that benefit private interests) more than insubstantially.
• Not be organized or operated for the primary purpose of conducting a trade or business that is not related to your exempt purpose(s).
• Not devote more than an insubstantial part of your activities attempting to influence legislation or, if you made a section 501(h) election, not
normally make expenditures in excess of expenditure limitations outlined in section 501(h).
• Not provide commercial-type insurance as a substantial part of your activities.
Check this box to attest that you have not conducted and will not conduct activities that violate these prohibitions and restrictions.
4 Do you or will you attempt to influence legislation? ......................
(If yes, consider filing Form 5768. See the instructions for more details.)
Yes No
5 Do you or will you pay compensation to any of your officers, directors, or trustees? ............
(Refer to the instructions for a definition of compensation.)
Yes No
6 Do you or will you donate funds to or pay expenses for individual(s)? ................
Yes No
7
Do you or will you conduct activities or provide grants or other assistance to individual(s) or organization(s) outside the
United States? ................................
Yes No
8
Do you or will you engage in financial transactions (for example, loans, payments, rents, etc.) with any of your officers,
directors, or trustees, or any entities they own or control? ....................
Yes No
9 Do you or will you have unrelated business gross income of $1,000 or more during a tax year? .........
Yes No
10 Do you or will you operate bingo or other gaming activities? ...................
Yes No
11 Do you or will you provide disaster relief? ........................
Yes No
Part IV
Foundation Classification
Part IV is designed to classify you as an organization that is either a private foundation or a public charity. Public charity
status is a more favorable tax status than private foundation status.
1 If you qualify for public charity status, check the appropriate box (1a – 1c below) and skip to Part V below.
a
Check this box to attest that you normally receive at least one-third of your support from public sources or you normally receive at least 10
percent of your support from public sources and you have other characteristics of a publicly supported organization. Sections 509(a)(1) and
170(b)(1)(A)(vi).
b
Check this box to attest that you normally receive more than one-third of your support from a combination of gifts, grants, contributions,
membership fees, and gross receipts (from permitted sources) from activities related to your exempt functions and normally receive not more
than one-third of your support from investment income and unrelated business taxable income. Section 509(a)(2).
c
Check this box to attest that you are operated for the benefit of a college or university that is owned or operated by a governmental unit.
Sections 509(a)(1) and 170(b)(1)(A)(iv).
2
If you are not described in items 1a – 1c above, you are a private foundation. As a private foundation, you are required by section 508(e) to have
specific provisions in your organizing document, unless you rely on the operation of state law in the state in which you were formed to meet
these requirements. These specific provisions require that you operate to avoid liability for private foundation excise taxes under sections
4941-4945.
Check this box to attest that your organizing document contains the provisions required by section 508(e) or that your organizing document
does not need to include the provisions required by section 508(e) because you rely on the operation of state law in your particular state to
meet the requirements of section 508(e). (See the instructions for explanation of the section 508(e) requirements.)
Form 1023-EZ (6-2014)
Form 1023-EZ is filed electronically only on Pay.gov.
You must complete the Form 1023-EZ Eligibility Worksheet in the Instructions for Form 1023-EZ to
determine if you are eligible to file this form. Form 1023-EZ is filed electronically only on Pay.gov.
Go to www.irs.gov/form1023ez for additional filing information.
Form 1023-EZ (6-2014)
Page 3
Part V
Reinstatement After Automatic Revocation
Complete this section only if you are applying for reinstatement of exemption after being automatically revoked for failure to
file required annual returns or notices for three consecutive years, and you are applying for reinstatement under section 4 or 7
of Revenue Procedure 2014-11. (Check only one box.)
1
Check this box if you are seeking retroactive reinstatement under section 4 of Revenue Procedure 2014-11. By checking this box, you attest
that you meet the specified requirements of section 4, that your failure to file was not intentional, and that you have put in place procedures
to file required returns or notices in the future. (See the instructions for requirements.)
2
Check this box if you are seeking reinstatement under section 7 of Revenue Procedure 2014-11, effective the date you are filling this
application.
Part VI
Signature
I declare under the penalties of perjury that I am authorized to sign this application on behalf of the above organization
and that I have examined this application, and to the best of my knowledge it is true, correct, and complete.
PLEASE
SIGN
HERE
(Type name of signer) (Type title or authority of signer)
F
(Signature of Officer, Director, Trustee, or other authorized official)
F
(Date)
Form 1023-EZ (6-2014)
Printed on recycled paper
Form 1023-EZ is filed electronically only on Pay.gov.
You must complete the Form 1023-EZ Eligibility Worksheet in the Instructions for Form 1023-EZ to
determine if you are eligible to file this form. Form 1023-EZ is filed electronically only on Pay.gov.
Go to www.irs.gov/form1023ez for additional filing information.
Document Specifics
| Fact Name | Description |
|---|---|
| Eligibility Criteria | The IRS 1023-EZ form is designed for small tax-exempt organizations with gross receipts of $50,000 or less and total assets under $250,000. |
| Simplified Application | This form simplifies the application process for tax-exempt status, allowing eligible organizations to complete it online. |
| Filing Fee | The filing fee for the 1023-EZ form is currently $275, which is lower than the standard 1023 form fee. |
| Processing Time | Typically, the IRS processes the 1023-EZ applications within 2-4 weeks, making it a quicker option for obtaining tax-exempt status. |
| State-Specific Forms | Some states require additional forms for nonprofit registration. For example, California requires the Form CT-1 under the California Nonprofit Corporation Law. |
| Public Disclosure | Once approved, the IRS requires organizations to make their 1023-EZ form available to the public, ensuring transparency. |
IRS 1023-EZ: Usage Instruction
Filling out the IRS 1023-EZ form is a straightforward process that requires careful attention to detail. After completing the form, you will submit it to the IRS to apply for tax-exempt status for your organization. Follow the steps below to ensure that you complete the form accurately.
- Gather necessary information about your organization, including its legal name, address, and Employer Identification Number (EIN).
- Determine your organization’s eligibility by reviewing the requirements for using the 1023-EZ form.
- Access the IRS website and download the 1023-EZ form or fill it out online if available.
- Complete Part I by providing basic information about your organization, such as its mission and activities.
- Fill out Part II, answering questions about your organization’s structure and governance.
- In Part III, provide details about your organization’s financial information, including projected income and expenses.
- Review all the information for accuracy and completeness before submitting.
- Submit the completed form electronically through the IRS website or by mail, depending on your chosen method.
- Pay the required user fee, if applicable, as part of the submission process.
Learn More on IRS 1023-EZ
- Have gross receipts of $50,000 or less in the past three years.
- Expect to have gross receipts of $200,000 or less in the next three years.
- Have total assets of $250,000 or less.
- Are not classified as a church, school, or hospital.
- Name and address of the organization.
- Employer Identification Number (EIN).
- Details about the organization’s structure and activities.
- Financial information, including gross receipts and assets.
What is the IRS 1023-EZ form?
The IRS 1023-EZ form is a streamlined application for small tax-exempt organizations to apply for 501(c)(3) status. This form simplifies the process, making it easier for eligible organizations to obtain tax-exempt status under the Internal Revenue Code.
Who is eligible to use the 1023-EZ form?
Eligibility for the 1023-EZ form is limited to organizations that:
How do I file the 1023-EZ form?
The 1023-EZ form must be filed electronically through the IRS website. You will need to create an account on the IRS online application portal. Once logged in, you can complete the form and submit it directly online.
What information is required on the 1023-EZ form?
The form requires basic information about your organization, including:
What is the filing fee for the 1023-EZ form?
The filing fee for the 1023-EZ form is $275. This fee is non-refundable, even if the application is denied.
How long does it take to process the 1023-EZ form?
Typically, the IRS processes 1023-EZ applications within 2 to 4 weeks. However, processing times may vary based on the volume of applications and other factors.
What happens if my 1023-EZ application is denied?
If your application is denied, you will receive a letter explaining the reasons for the denial. You may have the option to appeal the decision or reapply using the full 1023 form.
Can I amend my 1023-EZ form after submission?
Once submitted, you cannot amend the 1023-EZ form. If you realize there is an error, you will need to contact the IRS for guidance on how to proceed.
Is there a deadline for filing the 1023-EZ form?
There is no specific deadline for filing the 1023-EZ form. However, it is advisable to file as soon as possible to ensure your organization can operate as a tax-exempt entity. If you miss the deadline for your tax year, you may need to wait until the next tax year to apply.
Where can I find more information about the 1023-EZ form?
Additional information about the 1023-EZ form can be found on the IRS website. The site provides resources, instructions, and FAQs to help guide you through the application process.
Common mistakes
Filing the IRS 1023-EZ form can be a straightforward process, but there are common mistakes that many applicants make. One significant error is not ensuring eligibility. Before starting the application, it’s essential to confirm that your organization qualifies for the streamlined process. If your organization does not meet the criteria, you may need to file the longer Form 1023, which can be more complex and time-consuming.
Another frequent mistake is providing incomplete or inaccurate information. Every section of the form must be filled out accurately. Omitting details or making errors can lead to delays or even rejection of your application. Double-checking all entries can save you time and frustration later on.
Many applicants also underestimate the importance of a clear mission statement. The IRS requires a well-defined purpose for your organization. If this statement is vague or does not align with the IRS's requirements for tax-exempt status, your application may be denied. Take the time to articulate your mission clearly and concisely.
Some individuals fail to attach the necessary documentation. While the 1023-EZ is designed to be simpler, certain documents are still required. Missing these attachments can result in a rejection. Always review the checklist provided by the IRS to ensure you have everything in order before submission.
Additionally, applicants sometimes neglect to consider the financial information section. Even though the 1023-EZ has less stringent requirements than its longer counterpart, you must still provide accurate financial projections. Underestimating or overestimating your financials can raise red flags and lead to further scrutiny.
Another mistake is not paying the filing fee or misunderstanding the payment process. The fee for the 1023-EZ is lower than that for the full 1023, but it must be submitted with the application. Ensure that you follow the IRS guidelines for payment to avoid any issues.
Some organizations fail to understand the importance of the governance structure. The IRS looks for a clear organizational structure and proper governance practices. If your organization lacks a board of directors or has not established bylaws, it could hinder your application. Make sure to address these aspects thoroughly.
Moreover, applicants sometimes rush through the process without seeking guidance. While the 1023-EZ is simpler, it’s still advisable to consult with someone experienced in nonprofit law or tax-exempt applications. Having an expert review your form can help catch mistakes you might have overlooked.
Lastly, not keeping a copy of the submitted form is a common oversight. Always retain a copy of your completed application and any correspondence with the IRS. This record will be invaluable if you need to follow up or address any issues that arise after submission.
Documents used along the form
The IRS 1023-EZ form is a streamlined application for small organizations seeking tax-exempt status under section 501(c)(3) of the Internal Revenue Code. While this form is essential, several other documents may be necessary to support the application process and ensure compliance with IRS requirements. Below is a list of commonly used forms and documents that may accompany the IRS 1023-EZ form.
- Articles of Incorporation: This document outlines the organization's purpose, structure, and governance. It is typically filed with the state to formally establish the nonprofit entity.
- Bylaws: Bylaws serve as the internal rules governing the organization. They detail how the organization will operate, including procedures for meetings, elections, and decision-making.
- Employer Identification Number (EIN): An EIN is a unique number assigned by the IRS for tax identification purposes. Nonprofits need this number to open bank accounts and file tax returns.
- Conflict of Interest Policy: This policy outlines how the organization will handle potential conflicts among board members and staff. It helps maintain transparency and integrity in decision-making.
- Financial Statements: These statements provide a snapshot of the organization’s financial health. They may include balance sheets and income statements for the past few years, if applicable.
- Statement of Revenue and Expenses: This document summarizes the organization's expected income and expenditures for the upcoming year, demonstrating financial viability to the IRS.
- Supporting Documentation: Any additional documentation that supports the organization's purpose, such as brochures, flyers, or letters of support from community members, may be included.
- Schedule of Activities: This schedule outlines the planned activities and programs of the organization. It helps the IRS understand how the organization will operate and fulfill its mission.
Incorporating these documents with the IRS 1023-EZ form can enhance the application’s clarity and completeness. Each piece plays a vital role in illustrating the organization’s mission and operational plans, ultimately aiding in the approval process for tax-exempt status.
Similar forms
The IRS Form 1023-EZ is a streamlined application for small tax-exempt organizations seeking 501(c)(3) status. Similar to the standard Form 1023, the 1023-EZ simplifies the process for organizations with gross receipts of $50,000 or less and assets under $250,000. While both forms serve the same purpose of applying for tax-exempt status, the 1023-EZ requires significantly less documentation and fewer details about the organization’s structure and activities, making it an attractive option for smaller entities.
Form 990-N, often referred to as the e-Postcard, is another document that shares similarities with the 1023-EZ. This form is used by small tax-exempt organizations to report their annual financial information to the IRS. Like the 1023-EZ, it is designed for organizations with limited financial activity, specifically those with gross receipts of $50,000 or less. Both forms aim to ease the administrative burden on smaller nonprofits, allowing them to focus more on their mission rather than paperwork.
Form 990-EZ is a more detailed annual return that serves as a middle ground between the Form 990 and the 990-N. Organizations with gross receipts between $50,000 and $200,000 may file this form. While the 1023-EZ is about applying for tax-exempt status, the 990-EZ focuses on ongoing compliance and reporting. Both forms require organizations to provide financial information, but the 990-EZ demands a more comprehensive look at the organization's financial activities.
Form 1024 is the application for recognition of exemption under sections other than 501(c)(3). This form is applicable to organizations seeking tax-exempt status under different sections of the Internal Revenue Code, such as 501(c)(4) or 501(c)(6). Similar to the 1023-EZ, Form 1024 requires detailed information about the organization’s purpose and activities, although it is designed for entities that do not qualify under the 501(c)(3) category. Both forms serve as gateways to tax-exempt status but cater to different types of organizations.
The IRS Form 990 is a comprehensive annual reporting form that most tax-exempt organizations must file. While the 1023-EZ is for initial applications, the 990 is a tool for transparency and accountability. Both forms require organizations to disclose information about their operations, governance, and finances, but the 990 goes into much greater detail. This ongoing reporting is crucial for maintaining tax-exempt status and ensuring compliance with IRS regulations.
Form 1023 is the full version of the application for 501(c)(3) status. Unlike the 1023-EZ, it requires extensive documentation and detailed descriptions of the organization’s programs and finances. While both forms aim to secure tax-exempt status, the 1023 is designed for larger organizations or those with more complex structures. Applicants must provide a wealth of information, which can be daunting, making the 1023-EZ a more accessible option for smaller nonprofits.
Form 8868 is an application for an automatic extension of time to file certain exempt organization returns. This form shares a common goal with the 1023-EZ: ensuring compliance with IRS requirements. While the 1023-EZ is about obtaining tax-exempt status, Form 8868 allows organizations to delay their filing of annual returns without jeopardizing their tax-exempt status. Both forms reflect the IRS's understanding of the unique challenges faced by nonprofits in managing their administrative responsibilities.
Form 990-PF is specifically for private foundations and is used to report their financial activities. This form is similar to the 1023-EZ in that it provides a framework for transparency, but it focuses on the unique financial structures of private foundations. Like the 1023-EZ, the 990-PF requires specific financial disclosures, but it is tailored to meet the needs of a different type of tax-exempt organization.
Finally, Form 1023-S is a relatively new form that applies to small organizations seeking 501(c)(3) status, specifically those that are not classified as a private foundation. This form is similar to the 1023-EZ in that it aims to simplify the application process for smaller nonprofits. Both forms focus on easing the burden of paperwork for organizations with limited resources, although the 1023-S is specifically designed for those that meet certain criteria, further streamlining the process for eligible applicants.
Dos and Don'ts
When filling out the IRS 1023-EZ form, it is essential to follow specific guidelines to ensure a smooth application process. Below is a list of things you should and shouldn't do:
- Do read the instructions carefully before starting the form.
- Do provide accurate and complete information.
- Do ensure your organization qualifies for the 1023-EZ eligibility criteria.
- Do double-check your calculations and figures.
- Do keep a copy of the completed form for your records.
- Don't rush through the application process.
- Don't ignore the eligibility requirements; verify them thoroughly.
- Don't leave any required fields blank.
- Don't submit the form without reviewing it for errors.
- Don't forget to include the required user fee with your submission.
Misconceptions
The IRS Form 1023-EZ is a streamlined application for small organizations seeking tax-exempt status. However, several misconceptions can lead to confusion. Here are five common misunderstandings:
- Only small organizations can use the 1023-EZ. While the form is designed for smaller nonprofits, it is not limited to only those with minimal budgets. The criteria focus more on the organization's projected revenue and assets.
- The 1023-EZ guarantees tax-exempt status. Submitting the form does not automatically grant tax-exempt status. The IRS reviews each application, and approval is not guaranteed.
- Filing the 1023-EZ is a quick process. Although the form is shorter than the full 1023, the review process can still take several months. Organizations should plan accordingly.
- All nonprofits are eligible to use the 1023-EZ. Not every organization qualifies for this simplified application. Certain types of nonprofits, such as those with specific activities or structures, must use the longer Form 1023.
- Once approved, the status is permanent. Tax-exempt status can be revoked if the organization fails to comply with IRS regulations. Regular filings and adherence to guidelines are essential to maintain status.
Key takeaways
The IRS 1023-EZ form is a streamlined application for small organizations seeking tax-exempt status under Section 501(c)(3) of the Internal Revenue Code. Here are some key takeaways to keep in mind when filling out and using this form:
- Eligibility Criteria: Before you start, ensure your organization qualifies. Generally, it should have gross receipts of $50,000 or less in the past three years and assets under $250,000.
- Simplicity of Process: The 1023-EZ is designed to be more straightforward than the longer 1023 form. This can save time and reduce the complexity of the application process.
- Online Submission: The form must be submitted electronically through the IRS website. Familiarize yourself with the online system to avoid technical issues during submission.
- Filing Fee: A filing fee is required when submitting the 1023-EZ. As of the last update, the fee is $275, which is less than the fee for the standard 1023 form.
- Documentation Requirements: While the 1023-EZ is simpler, you still need to maintain proper documentation to support your application. This includes your organization’s governing documents and a narrative of your activities.
Understanding these points can make the process of applying for tax-exempt status smoother and more efficient for your organization.