In July 2014, the Internal Revenue Service announced it would now accept a less burdensome application form for organizations seeking 501(c)(3) status. Known as form 1023 EZ.
According to its press release, the IRS slashed the old 26-page form to just three pages for organizations with gross revenue of less than $50,000 and assets below $250,000. IRS Commissioner John Koskin noted, “The change cuts paperwork for these charitable groups and speeds application processing so they can focus on their important work.”
A shorter form is easier for charities to complete, and a shorter form is also easier for the IRS to review and approve (or reject). Since the IRS had over 60,000 applications for 501(c)(3) status when they announced the new 1023 EZ form, it is anticipated that the new form will streamline and expedite the process for up to 70% of applicants.
Koskinin noted, “Rather than using large amounts of IRS resources up front reviewing complex applications during a lengthy process, we believe the streamlined form will allow us to devote more compliance activity on the back end to ensure groups are actually doing the charitable work they apply to do.”
To further expedite the process, the IRS is only accepting 1023 EZ applications online, which can be filed at www.pay.gov.