New 1023-EZ Form Simplifies Applying for 501(c)(3) Tax-Exempt Status

IRS Adopts 1023-EZToday, the Internal Revenue Service released the new Form 1023-EZ application form to reduce processing delays and help small charities apply for 501(c)(3) tax-exempt status more easily.

The new Form 1023-EZ is available today on The final version three pages long compared with the standard 26-page Form 1023. Most small organizations, defined as those with gross receipts of $50,000 or less and assets of $250,000 or less, will qualify to use the new streamlined form.

The IRS introduced the streamlined process to speed the approval process for smaller groups and free up resources to review applications from larger, more complex organizations while reducing the application backlog. Currently, the IRS has more than 60,000 501(c)(3) applications in its backlog, with many of them pending for more than nine months.

The IRS revised the 1023-EZ in response to widespread criticism from state regulators and those working with charitable groups. The revisions include reducing the filing threshold from $200,000 in gross receipts to $50,000 in gross receipts.

The IRS has stated that by reducing the the time required to process applications, they will be able to devote more resources to audits and examinations to ensure charities are actually doing the charitable work they were approved to do.

The new EZ form must be filed online. The instructions include an eligibility checklist that organizations must complete before filing the form.

The Form 1023-EZ must be filed using, and a $400 user fee is due at the time the form is submitted. Further details on the new Form 1023-EZ application process can be found in Revenue Procedure 2014-40, posted today on

Ellis Carter is a nonprofit lawyer with Caritas Law Group, PC. To contact Ellis, call 602-456-0071 or email us at

2 thoughts on “New 1023-EZ Form Simplifies Applying for 501(c)(3) Tax-Exempt Status

  1. I just finished reading your other post on Form 1023-EZ – Traps for the Unwary before reading this post. I think the current Form 1023 is too intimidating especially for smaller nonprofits. But the questions the current form asks are helpful to inform new nonprofits of the various issues that they will need to face to maintain tax exempt status. I am therefore in doubt of the appropriateness of the 1023-EZ in its proposed form and with its proposed criteria for use. Great post anyway and happy holidays!

  2. What if the organization wants to generate more than $50,000 in receipts one day, do they just file a new 1023? Or should they file a 1023, and bypass the 1023 EZ?

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