Rev. Proc. 2016-32 announces that the user fee for filing Form 1023-EZ, “Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code,” will be reduced from $400 to $275, effective July 1, 2016.
Read text of Rev. Proc. 2016-32 as it appears in the Internal Revenue Bulletin 2016-22 [PDF 115 KB]
An entity seeking exemption from federal income tax as an organization described in section 501(c)(3) generally is required to apply to the IRS on Form 1023, Application for Recognition of Exemption. The IRS uses the information provided to determine if the applicant is exempt and whether the applicant is a public charity or a private foundation.
The IRS released Form 1023-EZ in 2014 to provide a less burdensome alternative for small organizations applying for recognition of exemption. However, there are numerous limitations to the organizations eligible to file the Form 1023-EZ, including:
The Form 1023-EZ “eligibility worksheet” sets forth a more comprehensive list of the requirements. Although an organization may be eligible to file Form 1023-EZ, it may choose to file Form 1023 instead.
For more information, contact the Managing Director-in-Charge of KPMG's Washington National Tax Exempt Organizations Tax group:
D. Greg Goller | +1 (703) 286-8391 | firstname.lastname@example.org
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