Non-Profit Exempt Organization Application Changes

If your organization plans to file an Exempt Organization application to establish its non-profit status, you should be aware of changes to the Internal Revenue Service (IRS) Form 1023 Series, “Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code” and Form 1024, “Application for Recognition of Exemption Under Section 501(a)”. Changes to these forms occurred in an effort to streamline the application process.

Revisions to Form 1023-EZ

On the 2018 version of the Form 1023-EZ, the less burdensome version of the Form 1023 available for certain eligible organizations, a new box has been added where applicants are required to describe their exempt purpose. The revised form also asks the organizations explicitly if the applicant is seeking recognition as a church, hospital, or school, as such organizations are not allowed to use the Form 1023-EZ. The other change is the previous question asking about an organization’s gross receipts and assets is now presented as two separate questions. You can register online to file the 1023-EZ. Enter ‘1023-EZ’ in the search box and complete the form. Instructions for the new 1023-EZ form can be viewed here.

Update to Form 1023

The IRS also updated IRS Form 1023 in December 2017. A new line (Line 5G in Part X Public Charity Status) has been added to include new public charity status for agricultural organizations. Instructions for the IRS Form 1023 can be viewed here.

New Form: Form 1024-A

A draft of Form 1024-A “Application for Recognition of Exemption Under Section 501(c)(4) of the Internal Revenue Code” was released in September 2017. Although organizations seeking 501(c)(4) status can self-declare, the new Form 1024-A will be meant for use by organizations that want an official determination of their tax-exempt status from the IRS as authorized by the Protecting Americans From Tax Hikes Act of 2015. We will monitor the IRS web-site for when the final version of this form and instructions are issued and provide an update at a later time.