Outstanding news for organizations trying to seek tax-exemption status – the Internal Revenue Service
reduced its processing fee for Form 1023-EZ
, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code.
The change, implemented this past July 1, slashes the original application fee from $400 to $275.
What is Form 1023-EZ
The EZ version of IRS Form 1023
was introduced back in 2014 as a quicker and simpler process for small organizations applying for exemption status under Section 501(c)(3)
of the Tax Code. This shorter 3-page form made it possible for the IRS to cut down the backlog of the tens of thousands of organizations seeking tax-exemption each year.
If your organization makes less than $50,000 and have assets less than $250,000, the short application form is the best way to go. You can also learn more about what the form requires with our easy blog: Section 501(c)(3) Applications
How To Pay
The IRS states that organizations can pay their processing fees through Pay.gov when filing the application. You’ll need to provide either bank account information or a valid credit card or debit card to process the payment.
After your organization applies and receives exemption status, the next thing to do is preserve your tax-exemption by e-filing the required form each year with the IRS. Because your gross receipts are less than $50,000, you’ll need to e-file IRS Form 990-N (e-Postcard), and no other service makes that easier than ExpressTaxExempt.com.
With ExpressTaxExempt.com, all you need to enter is basic organization details, select your tax year period, and confirm your organization makes less than $50,000. Afterward, you can authorize and transmit to the IRS along with receiving real-time, email notifications of your filing status. And the best part – the process takes only minutes to complete.
If you’re nowhere near a computer, that’s not a problem. Our FREE downloadable ExpressTaxExempt Mobile app, for iOS and Android devices, allows you to e-file anywhere there is Wi-Fi access for smartphones and tablets. And the process is no different – complete your filing within minutes.
As easy as we’ve made it, we still understand the severity that comes with federal tax filings. If you have any questions or need assistance with your e-filing experience, contact our U.S. – based support team in Rock Hill, South Carolina. We’re available at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST. We also offer 24/7 email messaging with support@ExpressTaxExempt.com.