Instructions for Filing Form 1023-EZ

Form 1023-EZ is the streamlined application used by smaller organizations to request recognition of tax-exempt status under Internal Revenue Code Section 501(c)(3). It serves as a shorter, entirely electronic alternative to the more comprehensive Form 1023. By attesting that they meet certain requirements, organizations can navigate the application process more efficiently.

Determining Your Eligibility

Before an organization can use the form, it must confirm its eligibility by completing the Form 1023-EZ Eligibility Worksheet, found within the form’s official instructions. A component of this worksheet revolves around financial thresholds. An organization qualifies only if it projects its annual gross receipts will not exceed $50,000 in any of the next three years and if its total assets do not exceed $250,000 in fair market value. Answering “yes” to questions about exceeding these financial caps on the worksheet will render the organization ineligible to use Form 1023-EZ.

The worksheet consists of a series of questions that disqualify certain organizations. If an organization answers “Yes” to any of the worksheet’s approximately 30 questions, it is not eligible to file Form 1023-EZ and must instead use the more detailed Form 1023. The worksheet must be completed, but it is not submitted with the application. Instead, the organization must keep it for its records.

Certain organizational structures and purposes automatically preclude the use of Form 1023-EZ. Organizations are ineligible if they are one of the following:

• Churches, schools, colleges, universities, or hospitals
• Entities formed in a foreign country
• Private operating foundations
• Organizations with a prior revocation of their Section 501(c)(3) status
• Organizations previously denied tax exemption or found ineligible to file Form 1023-EZ
• Entities with activities involving federally illegal controlled substances or digital assets
• Organizations managing charitable risk pools, providing credit counseling, or investing more than 5% of assets in non-publicly traded securities

An organization must be formed as a corporation, a trust, or an unincorporated association to qualify. Limited liability companies (LLCs) may also qualify if they have filed Form 8832, Entity Classification Election, to be treated as a corporation.

Information and Documents to Prepare

An Employer Identification Number (EIN) is required to file Form 1023-EZ. An EIN is a unique nine-digit number assigned by the IRS to business entities for tax filing and reporting purposes. An organization must have its own EIN before it can access and submit the application, and this number is required regardless of whether the entity has employees. Applying for an EIN is a separate process that can be completed online, and the number is issued immediately upon completion of the application.

A preparatory step is the drafting and formal adoption of an organizing document. Depending on the entity’s structure, this may be its articles of incorporation, constitution, or a trust agreement. This document must state that the organization’s purpose is one or more of the exempt purposes listed in Section 501(c)(3), such as charitable, religious, or educational. It must also include a dissolution clause stipulating that upon dissolution, any remaining assets will be distributed for an exempt purpose.

The application requires a concise description of the organization’s mission and planned activities. This narrative should demonstrate how the organization will operate exclusively for exempt purposes. The description must be specific enough for the IRS to understand the organization’s intended function and verify its alignment with 501(c)(3) standards.

Applicants must gather specific information for all officers, directors, and trustees, including their full names, titles, and complete mailing addresses. The online form requires this information to be entered for each individual.

The organization’s leadership must be prepared to attest under penalty of perjury that the entity meets the financial limitations for filing Form 1023-EZ. While detailed financial statements are not submitted with the form, the attestation carries legal weight, and organizations should have a reasonable basis for their projections.

The Online Filing and Submission Process

Filing Form 1023-EZ is an electronic process conducted through the pay.gov portal. Applicants must first create a user account, which is a mandatory step to access the form. Once an account is established, the user can log in and search for Form 1023-EZ.

The applicant proceeds to enter the information gathered during the preparation phase. The online form is structured as a series of fields and checkboxes designed to be completed sequentially. Applicants can save their progress and return later to complete the application.

A mandatory, non-refundable user fee of $275 must be paid to submit the application. Payment is made through the pay.gov platform, which accepts payment via credit card, debit card, or direct debit from a bank account.

The final step is the electronic signature and submission. An authorized officer, director, or trustee must certify the application by checking a box that affirms, under penalties of perjury, that the information is accurate and the organization is eligible. After this attestation, the user submits the completed application to the IRS.

After You Submit Your Application

Following submission, the applicant will receive a confirmation of receipt from pay.gov. This confirmation proves the form was transmitted and the user fee was paid. It is advisable to save this confirmation, the completed eligibility worksheet, and a copy of the application for the organization’s records.

The IRS processing time for Form 1023-EZ is shorter than for the full Form 1023, with determinations for most correctly filed applications issued within a few weeks to 90 days. If the IRS selects an application for review or requires more information, the process can take longer. Applicants can check the “Where’s My Application” tool on the IRS website for current processing time estimates.

The outcome is communicated through an official IRS determination letter sent by mail, which states whether the application for Section 501(c)(3) status has been approved or rejected. If approved, the letter is the legal document confirming the organization’s tax-exempt status and should be kept in a permanent location. A rejection letter will explain the reasons for the denial.

Upon approval, the organization’s tax-exempt status becomes public record. The IRS is required to disclose all approved exemption applications, meaning the submitted Form 1023-EZ and the determination letter will be available for public inspection.