The Internal Revenue Service has lowered the cost of applying for tax-exempt status using the 1023-EZ short form from $400 to $275, writes Accounting Today. The fee reduction, announced in May, took effect July 1.
The IRS rolled out the three-page 1023-EZ in 2014 to streamline the process for small charitable organizations to apply for 501(c)(3) status and reduce a backlog of such submissions that ran into the tens of thousands. Organizations with less than $250,000 in assets or $50,000 in annual gross income can use the short form. Previously all groups seeking charity status, regardless of their size, had to use the standard 26-page form.