What is the purpose of Form 1023?
What is the purpose of Form 1023?
Form 1023 is a United States IRS tax form, also known as the Application for Recognition of Exemption Under 501(c)(3) of the Internal Revenue Code. It is filed by nonprofits to get exemption status.
Who must file a Form 1023?
nonprofits
The IRS Form 1023 is categorized as the Application for Recognition of Exemption under Section 501(c)(3) of the Internal Revenue Code. To obtain recognition of exemption from the federal income tax under IRS Code Section 501(c)(3), eligible organizations or nonprofits are required to file Form 1023.
What is the difference between IRS Form 1023 and 1023-EZ?
The 1023-EZ is a streamlined version of the regular Form 1023. The filing fee is lower (as of May 2021, the fee is $275 for the 1023-EZ and $600 for the regular 1023). Plus, the IRS processes the EZ forms much faster than the regular form.
How much does it cost to file 501c3 status?
How much is the user fee for an exemption application? The user fee for Form 1023 is $600. The user fee for Form 1023-EZ is $275. The user fees must be paid through Pay.gov when the application is filed.
How long does it take for 1023 approval?
about 2-4 weeks
As the name suggests, Form 1023-EZ is easier to complete, and the rate of approval is very high, but there may be disadvantages to using this form. The average processing time for Form 1023-EZ is about 2-4 weeks. By contrast, Form 1023 can take between 3 and 6 months for processing, and it could take up to a year.
Can I file Form 1023 online?
As of January 31, 2020, a Form 1023 must be submitted electronically online at Pay.gov. However, the IRS has provided a 90-day grace period during which it will continue to accept paper versions of Form 1023 (Rev. 12-2017).
Can a church file 1023-EZ?
According to the Form 1023-EZ instructions and Form 1023-EZ eligibility worksheet, churches are not eligible to use Form 1023-EZ and instead must use Form 1023 to apply for a determination letter from the IRS.
What happens if I use Form 1023-EZ and bring in more than $50000?
In the event that you exceed the $50,000 threshold, the IRS can retroactively revoke your organization’s 501(c)(3) status if you are unable to make a persuasive case that you met the Form 1023-EZ eligibility criteria at the time you applied.
How long does it take to get approved for 501c3?
between 3 and 6 months
The average processing time for Form 1023-EZ is about 2-4 weeks. By contrast, Form 1023 can take between 3 and 6 months for processing, and it could take up to a year.
What are the fees to file Form 1023?
First, there is the required IRS Form 1023 User Fee, which is now $600 ( as of March, 2018) regardless of your organization’s projected future income. This application fee is made online as part of your application to the United States Treasury and submitted as part of your 501c3 application packet.
Who must file Form 1023?
The Internal Revenue Service (IRS) allows nonprofit organizations and charities to file for tax-exempt status under provision 501(c)(3) of the federal tax code. To apply for this status, you must file Form 1023 with the IRS within 27 months of forming your corporation with the intent of becoming a foundation or public charity.
Where to file Form 1023?
To successfully file Form 1023, you must mail the completed form, along with any other required information and user fees, to: Internal Revenue Service. P.O. Box 192. Covington, KY 41012. With express mail or delivery services, you can send it to: Internal Revenue Service. 201 West Rivercenter Blvd.
Can Form 1023 be “E-filed”?
No, Form 1023 cannot be e-filed. It should be filled out and mailed to the IRS. How do I file Form 1023 with the IRS? To successfully file Form 1023, you must mail the completed form along with any other required information and user fees to:
