You are here

IRS Issues Streamlined Form 1023-EZ For Exemption of Small 501(c)(3) Groups

IRS Issues Streamlined Form 1023-EZ For Exemption of Small 501(c)(3) Groups

IRS Issues Streamlined Form 1023-EZ For Exemption of Small 501(c)(3) Groups

Only organizations expecting less than $50,000 a year may use it; Critics are concerned about lack of specific data and possible abuse

The Internal Revenue Service has issued a streamlined two and a half page Form 1023-EZ for many small nonprofits to use to file for recognition of 501(c)(3) charitable exemption.  It will substitute for the 12-page form that elicits significantly more information on activities, finances, and governance and must still be filed by organizations anticipating gross receipts in excess of $50,000 a year.

“This is a common sense approach that will help reduce lengthy processing delays for small tax exempt groups and ultimately larger organizations as well,” said IRS Commissioner John Koskinen.  Most small organizations, including as many as 70% of...

lock The full text of this article is available to paid subscribers only. Login or subscribe to read more

 

Sign-up for our weekly Q&A; get a free report on electioneering