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IRS Revises Form 1023; For the improvement of tax-exempt community services in the United States, the Internal Revenue Service is continuously looking for and applying different strategies. In the same ongoing effort, the IRS recently improved and revised Form 1023. With the new Form 1023, tax-exempt organizations can now electronic file for the first time in the year 2020.
Press Release:
The Commissioner of the IRS Tax Exempt and Government Entities division, Tammy Ripperda, released a statement about revising Form 1023 and said,
Filing electronically reduces errors, and we believe this will help provide a smoother application process for those seeking tax exemption. As we’ve seen with the 1023-EZ, we believe this change will help with application processing time and help with our wider efforts to improve our work with the tax-exempt community.
Benefits of IRS New Form 1023 for Tax-Exempt Organizations:
- The Internal Revenue Service (IRS) has revised Form 1023, Application for Recognition of Exemption under Section 501(c)(3) of the Internal Revenue Code, along with its instructions in order to assist charities apply for Section 501(c)(3) tax-exempt status.
- The IRS anticipates that the advantages of the electronic Form 1023 mirror those realized when Form 1023-EZ went online in the year 2014.
- The IRS statistics clearly demonstrate that the application processing time for the 1023-EZ has improved for both the Form 1023 and 1023-EZ. At the same time, similar approval and rejection rates are also maintained between the two forms.
How Do I Apply For Nonprofit Status With The IRS?
- For recognition of exemption, applications on Form 1023 must be submitted electronically online starting from January 31, 2020 at gov.
- A 90-day grace period will be provided by the IRS during which paper versions of Form 1023 (Rev. 12-2017) will continue to be accepted by the agency.
How Much Does It Cost To File Form 1023?
- For the year 2020, the essential user fee for Form 1023 will remain $600. When submitting the form, the applicants must pay the fee through the same online portal at gov. Not only this, the IRS facilitates the users to pay the fee directly from a bank account or by credit or debit card.
Updates about Form 1023 for Non-Profit Organizations:
- Subscribe to the Exempt Organizations Update for getting updates on Form 1023. It is a free e-Newsletter from the IRS office of Exempt Organizations. Must read, IRS New Tax Law Effects on Tax-Exempt Organizations.
- A list of important information can be obtained from EO Update including tax services, tax policies as well as other information which is necessary for the tax-exempt organizations.
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