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 | email@example.com
© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.