501(c)(3) App Just Got Easier

In theory, anyway.

That’s because on July 1, IRS introduced a new, shorter application form to help small charities apply for tax exempt status more easily.

The new Form 1023-EZ is a mere three pages long (compared with the standard Form 1023 which spans 26 pages.) IRS thinks as many as 70 percent of all tax exempt applicants will qualify to use the new streamlined form. Most organizations with gross receipts of $50,000 or less and assets of $250,000 or less are eligible to use the new form, which must be filed online, and be accompanied by a $400 user fee.

Check out Rev Proc 2014-40 for the details.