Tuesday, August 12, 2014
New 1023-EZ Form Released: Streamlines Process for Eligible Small Charities to Apply for IRC Section 501(c)(3) Tax-Exempt Status and Seek Retroactive Reinstatement | Planned Giving Design Center
New 1023-EZ Form Released: Streamlines Process for Eligible Small Charities to Apply for IRC Section 501(c)(3) Tax-Exempt Status and Seek Retroactive Reinstatement | Planned Giving Design Center: On July 1, 2014, the IRS issued Form 1023-EZ (Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code), along with instructions and a detailed Revenue Procedure (Rev. Proc. 2004-40) that sets forth the rules for the use of the form and an Information Release (IR-2004-77). Beginning immediately, certain eligible smaller charities seeking tax exemption under IRC� 501(c)(3) can use the 3-page Form 1023-EZ to see tax exempt tax from the IRS rather than the lengthy and complicated Form 1023, which is a 26-page form that consists of a 12-page “core form” plus eight potentially-applicable schedules and a checklist. The IRS estimates that up to 70% of new charities will be able to use the Form 1023-EZ, and anticipates that the use of Form 1023-EZ for small charities and the existing Form 1023 for larger charities, will enable the IRS to more quickly process all exemption applications. In its news release accompanying the Form 1023-EZ, the IRS indicates that it currently has more than 60,000 exemption applications in its “backlog,” many of which have been pending for nine months or more.