Tax Exempt Status
Nonprofit Formation
​​Co-op Formation
Tax Exempt Status
​Nonprofit Governance
​Nonprofit MOUs and
   Agreements
​Non-Profit General Counsel
Additional Information
Social Enterprises
B Corps
​Nonprofit Policies
Applying for Tax Exempt Status
There are two ways of applying for recognition as a tax-exempt organization: IRS Form 1023-EZ or IRS Form 1023. A few years ago, the IRS rolled out IRS Form 1023-EZ as a simpler application process for small nonprofits to apply for their tax-exempt status. The IRS seemed to recognize that the standard application was too complex and too time-consuming (both for the organization and the IRS) for smaller nonprofit organizations. The IRS has a several months-long backlog to process applications for tax-exempt status, and something needed to change…hence, the “EZ” version of the application. 

The difference between the EZ application and Form 1023 is pretty significant. The EZ Application is 3 pages, and the IRS estimates that on average, it takes the average person more than 18 hours to complete Form 1023-EZ. (It’s a short form, but you have to spend time getting your records and financial projections together, read the instruction booklet, figure out what the IRS is asking, and do other research to properly answer the questions). 

In contrast, the standard Form 1023 is 28 pages (and with the various narrative descriptions and attachments, the final application can easily end up being 35-45 pages or more). And the IRS estimates Form 123 will take the average person more than 105 hours to properly complete and submit! (And that doesn’t include the various schedules you may have to complete depending on how you answer the questions.)  
IRS Form 1023: $2,225
+ $600 IRS Fee
Includes: All schedules and narrative descriptions and review of articles of incorporation and bylaws for compliance.
IRS Form 1024: $2,450 (exemptions other than 501(c)(3))
+ $600 IRS Fee
IRS Form 1023EZ: $550
+ $275 IRS Fee
Qualifications: Gross Receipts of $50,000 or less in each of the last 3 years and each of the next 3 years AND less than $250,000 in assets
Review & Advice (IRS Forms 1023 or 1024): $1,000
Get your Application for Recognition of Tax Exempt Status reviewed by a nonprofit attorney before filing with the IRS and raising unnecessary and complicated red flags.
​Capped at 4 attorney hours.
Learn More About Applying for Tax Exempt Status

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