In an effort to improve service to the tax-exempt community, the Internal Revenue Service (IRS) announced Jan. 31 that charities can file all paperwork to apply for tax-exempt status online.
The IRS has revised Form 1023, the application for 501(c)(3) tax-exempt status, and its instructions.
“Filing electronically reduces errors, and we believe this will help provide a smoother application process for those seeking tax exemption,” said Tammy Ripperda, commissioner of the IRS Tax Exempt and Government Entities division. “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.”
The IRS created a Form 1023-EZ in 2014 to allow smaller charities with annual gross receipts under $50,000 to apply for tax-exempt status online, and this change will extend electronic filing to larger organizations as well. The required user fee for filing Form 1023 will remain $600 for 2020. Applicants have to pay the fee through https://pay.gov/public/home when submitting the form.