The IRS has released a draft Form 1023-EZ (Streamlined Application for Recognition of Exemption Under Section 501(c)(3) ) and draft instructions. This 2-page Form 1023-EZ is much shorter and less burdensome than the regular Form 1023 (which is now 26 pages long). Organizations that would normally file Form 1023 will be able to file Form 1023-EZ if they meet the following requirements: i) no more than $200,000 of projected annual gross receipts in any of the next three years; ii) annual gross receipts of not more than $200,000 in any of the past two years; and iii) total assets not in excess of $500,000.
This is great news for those seeking to acquire tax-exempt status and comes on the heels of the IRS providing an on-line “interactive” tax-exempt Form 1023 application. This should make applying for tax-exempt status a much easier process.