In 2014, the IRS released Form 1023-EZ, which is a streamlined version of IRS Form 1023 that is intended to help small nonprofits apply for 501(c)(3) tax exempt status more easily. Form 1023-EZ and the user fee (which was reduced to $275 by the IRS effective July 1, 2016) must be filed and remitted electronically through www.pay.gov.
Organizations eligible to utilize Form 1023-EZ, through a representative of the entity, must create an account through www.pay.gov, complete the Form 1023-EZ online, and submit the form and payment electronically. By setting up an account through www.pay.gov, the organization’s representative is able to save work in progress in case the form cannot be completed and submitted in one sitting. However, while small organizations have been able to apply for exempt status electronically, larger nonprofits that were not eligible to file Form 1023-EZ continued to be required to submit the more comprehensive Form 1023 via paper format.
But now the IRS has announced that, effective January 31, 2020, Form 1023 and the applicable user fee must also be filed and remitted through www.pay.gov, just like Form 1023-EZ. Organizations do, however, have a 90-day grace period, during which time they may still file Form 1023 via paper format (provided it is the version revised in December 2017). Note that Form 1023 is available for organizations seeking exemption under Internal Revenue Code section 501(c)(3); organizations seeking exemption under other code sections must use Form 1024, which cannot be filed electronically.
For more information about the electronic submission of Form 1023, click here or contact the GKH Corporate and Organizations Practice Group.
DISCLAIMER: The foregoing does not constitute legal advice and has been prepared for informational purposes only. Please contact us directly with questions about how this and other laws and procedures relate to your specific situation.
Prepared by GKH attorneys Jonna Stratton and Doug Smith.