What Is the Current 1023 EZ Filing Fee and How Do You Pay It?
Learn the current 1023-EZ filing fee, how to submit payment correctly, and what to expect if errors occur in the process.
Form 1023-EZ is a simplified application for small nonprofits seeking tax-exempt status under section 501(c)(3) of the Internal Revenue Code. It allows eligible organizations to apply with less paperwork than the standard Form 1023. However, submitting this application requires a filing fee that must be paid correctly to avoid delays.
Fee Amount
The filing fee for Form 1023-EZ is $275, a flat rate set by the IRS. This amount has remained unchanged since July 1, 2016, when it was reduced from $400 to make the process more accessible for smaller organizations. Unlike the standard Form 1023, which has a tiered fee structure based on an organization’s gross receipts, the 1023-EZ maintains a single fixed cost.
The fee is non-refundable, even if the application is denied or withdrawn. It must be paid at the time of submission to cover administrative costs.
Payment Requirements
The fee must be paid electronically through Pay.gov, the U.S. government’s secure online portal for federal payments. The IRS does not accept checks, money orders, or cash. Applicants must use a credit or debit card or provide bank account details for an ACH transfer.
Since the application process is entirely online, payment must be completed within the same session. Errors such as mismatched billing details or insufficient funds can cause transaction failures, delaying the application. Financial institutions’ fraud prevention measures may also trigger declined payments, requiring applicants to restart the submission.
Once processed, Pay.gov generates a confirmation receipt, which should be saved as proof of payment. Since the fee is non-refundable, verifying all details before submission can help prevent complications.
Refund or Credit Situations
The IRS does not issue refunds or credits for the Form 1023-EZ filing fee, regardless of the application’s outcome. This policy applies even if an organization later realizes it was ineligible to file or withdraws its application.
Refunds are only considered in rare cases, such as duplicate payments caused by technical errors. If an organization is charged multiple times for the same application, it can request a refund by providing documentation like bank statements or transaction confirmations. Approval is not guaranteed, and processing times can be lengthy.
If an organization mistakenly submits Form 1023-EZ instead of the full Form 1023, the IRS does not transfer the fee between applications. The organization must pay the correct amount again when submitting the proper form.
Consequences of Incorrect Payment
Payment errors can delay tax-exempt status approval, affecting an organization’s ability to receive tax-deductible donations. Without IRS recognition, donors cannot claim deductions, which may discourage contributions and impact fundraising.
A failed payment submission results in the application being rejected without review. Organizations that assume their application is under review may mistakenly operate as if tax-exempt status is pending, leading to compliance risks. If they collect donations without approval, they may need to notify donors that contributions were not tax-deductible, creating reputational and administrative challenges.