What this service is
Form 1023-EZ is the IRS's streamlined application for 501(c)(3) recognition. It is shorter than Form 1023 and carries a lower user fee, but it is open only to organizations that pass every question on the IRS Form 1023-EZ Eligibility Worksheet. We review that worksheet with you first, then prepare and file the form if you qualify. Our Form 1023-EZ guide explains the form in more depth.
Eligibility comes first, and we mean it. If any worksheet answer is yes, the instructions say you must apply on Form 1023 instead. If you are eligible but the short form is a poor fit for your plans, we tell you that too, before you pay a user fee.
Who needs it
Small organizations that expect to stay small. A hypothetical neighborhood literacy program expecting $30,000 a year in donations, with no endowment and no paid staff, is a typical candidate.
The worksheet's main financial tests are:
- Projected gross receipts of $50,000 or less in each of the current year and the next two years. Gross receipts means everything you take in from all sources, before subtracting any costs.
- Actual gross receipts of $50,000 or less in each of the past three years.
- Total assets with a fair market value of $250,000 or less.
The worksheet also excludes many types of organizations, including:
- Organizations formed as LLCs, as for-profit entities or as successors to a for-profit entity.
- Churches, schools, colleges and universities, hospitals and medical research organizations.
- Organizations requesting supporting organization status under section 509(a)(3) or private operating foundation status.
- Organizations that maintain donor advised funds.
- Organizations seeking retroactive reinstatement under sections 5 or 6 of Rev. Proc. 2014-11.
- Organizations formed under foreign law or with a foreign mailing address.
Check your own answers with our checker.
What's included
- Worksheet review: we go through all of the worksheet questions with you and keep a completed copy for your records. You do not submit the worksheet, but the IRS instructions tell you to keep it.
- Document check: we confirm your organizing document contains the purpose and dissolution provisions you will attest to on the form.
- Classification: we help you choose the correct public charity classification.
- Preparation of every part of Form 1023-EZ, including the description of your activities.
- Filing on Pay.gov after your authorized officer reviews and approves.
- After-filing guidance on annual returns, state requirements and donor receipts.
What we need from you
- Your filed articles of incorporation, any amendments and your EIN.
- Your actual gross receipts for each past year, if any, and a realistic budget for the current and next two years.
- A list of your assets and their approximate value.
- A short, concrete description of your programs.
- Names and titles of your officers and directors.
How it works
- Worksheet session. We go through the worksheet with you. If you are not eligible, we explain why and point you to Form 1023 preparation.
- Quote. If you qualify, you receive a fixed quote before work starts.
- Preparation. We prepare the form and send it to you for review.
- Attestation and signature. Your authorized officer checks the eligibility attestation, which also confirms you have read and understand the requirements for 501(c)(3) exemption.
- Filing. The form is submitted on Pay.gov with the $275 user fee.
What happens after filing
A determination letter or a rejection. If the IRS approves the application, it sends a determination letter. The letter may appear on the IRS Tax Exempt Organization Search before it arrives by mail. If the IRS finds you were not eligible to use the form, it rejects the application.
Possible questions. The IRS may contact you for more information, and it reviews a random sample of applications before making a determination.
Your ongoing obligations begin. An organization whose gross receipts are normally $50,000 or less can generally file the annual Form 990-N e-Postcard. You may also need to apply for state tax exemption and register to solicit donations. See annual filing requirements and donation receipts.
What affects timing
Preparation moves at the pace of your answers. Processing belongs to the IRS. Its "Where's my application" page shows the date it is currently reviewing and how long it takes to issue 80 percent of Form 1023-EZ determinations, and those figures change regularly. Form 1023-EZ cannot be expedited.
Frequently asked questions
What if we qualify but plan to grow quickly?
The worksheet looks ahead three years. If your realistic projections exceed $50,000 in any of them, you are not eligible, even if this year is small.
Why check our articles if the form is short?
Form 1023-EZ asks you to attest that your organizing document limits your purposes to 501(c)(3) purposes, does not expressly authorize substantial non-exempt activities and dedicates your assets to exempt purposes on dissolution. If your articles fall short, you need to amend them before applying.
What happens if we filed when we were not eligible?
The IRS rejects the application and sends a letter explaining why you were not eligible. You would then apply on Form 1023. The IRS also warns that misrepresenting or omitting a material fact can affect your ability to rely on a favorable determination letter.
Sources
- IRS: Instructions for Form 1023-EZ (Rev. January 2025). irs.gov
- IRS: Rev. Proc. 2026-5, Internal Revenue Bulletin 2026-1. irs.gov
- IRS: Where's my application for tax-exempt status. irs.gov
- IRS: Instructions for Form 990 (2025). irs.gov
IRS forms, fees and inflation-adjusted amounts change. We review this page when the IRS publishes new instructions.
501Nonprofit.com is a private company, not the IRS. This page is general information, not legal or tax advice for your organization. Example organizations and figures are hypothetical.
