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.)
Flat Fee Pricing
All fees and services described on this site are for information purposes only and are subject to change at any time. Until we have both a signed Engagement Agreement and your initial payment, the Firm reserves the right to quote you a new or different fee for services based on the unique legal needs of your business.
Payment Plans are available for an additional premium of 15%. All payment plans require a credit card authorization and are billed monthly. Payment plans are not available for rush delivery projects. Anticipated expenses are due with your first payment.
IRS Form 1023: $2,500
+$600 IRS Fee
Includes: All schedules and narrative descriptions and review of articles of incorporation and bylaws for compliance.
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
IRS Form 1024: $1,800
+$600 IRS Fee
exemptions other than 501(c)(3)
Traditional Hourly Rates
Where flat fees don't make sense, the Firm works on the traditional retainer basis. For general business needs, the Firm requires a replenishing retainer of $2,000/$1,000. The Firm bills at the hourly rate of $275 per hour for all attorney time and $125 per hour for all paralegal/law clerk time. The Firm bills in tenths of an hour increments. The Firm may from time to time require a larger retainer or replenishment in anticipation of significant work that the Firm reasonably believes cannot be covered by the standard retainer amount.