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Help Filling Out Your
501(c)(3) Application

 

Welcome!

This website, posted as a public service by Sandy Deja, author of
"Prepare Your Own 501(c)(3) Application", is designed to help
new non-profit organizations complete the Application for Exempt
Status Under Section 501(c)(3) of the Internal Revenue Code.

News affecting 501(c)(3) Applications

"New" Form 1023 Application Form
The Form 1023 currently available on IRS.gov shows a revision
date of 12/5/2013.  Form 1023 has not, however, been revised.  
The only change to the form is a notice about the "interactive"
501(c)(3) application now available at StayExempt.irs.gov.
 
New Interactive 501(c)(3) Application Form
The "interactive" 501(c)(3) application is now available for use, at
www.stayexempt.irs.gov/StartingOut/InteractiveForm1023Application.aspx 
After asking a few preliminary qestions, the interactive form walks you
through the 501(c)(3) application, allowing you to look up information
and prepare attachments that are an integral part of the form.  The form
cannot be filed "on line;" you must still print it, add your supporting docu-
ments, and file in the usual way.  There is no fee discount for using the
"interactive" Form 1023.
 
Prepare Your Own 501(c)(3) Application revised for 2012
Sandy Deja's ebook, Prepare Your Own 501(c)(3) Application, has just been
revised for 2012.  Links, statistics, and the list of 1023's on the Internet have
been updated.  New material includes three chapters for folks who are filing
to have their status reinstated after Automatic Revocation, and four new
handbook topics: Paperwork Burden of Form 1023; Recycling A Prior
Application; Replacing Your Exemption Letter, and Next New Form 1023.
 
Prepare Your Own 501(c)(3) Application revised for 2012
Sandy Deja's ebook, Prepare Your Own 501(c)(3) Application, has just been
revised for 2012.  Links, statistics, and the list of 1023's on the Internet have
been updated.  New material includes three chapters for folks who are filing
to have their status reinstated after Automatic Revocation, and four new
handbook topics: Paperwork Burden of Form 1023; Recycling A Prior
Application; Replacing Your Exemption Letter, and Next New Form 1023.
 
IRS User Fees Unchanged for 2012
The IRS has just released Revenue Procedure 2012-8, which provides details
about IRS User Fees. All fees for exemption applications remain the same:
- $400 for applicants whose gross receipts average $10,000 or less
- $850 for applicants whose gross receipts average more than $10,000
- $3,000 for group exemptions
- $100 for small organizations seeking reinstatement after automatic
revocation (must meet IRS guidelines for Transitional Relief)
The new Revenue Procedure does not mention the Cyber Assistant.
 
New Form 8940
The IRS has introduced a new form for use by exempt organizations.
Form 8940 provides a way to apply for nine different EO-related rulings
that previously required a letter application. A timely application for
"Exemption from Form 990 filing requirements," or "Reclassification of
foundation status," might help some organizations avoid automatic revocation
in the future. Since January, 2011, these two types of rulings have required a
User Fee of $400.
 
Did You Receive IRS Notice CP120A?
The picture is not quite as bleak as this notice makes it sound.  Although
your organization's status has been revoked, and you will have to re-apply
if you want reinstatement, the User Fee for small organizations has been
reduced to only $100, and small organizations DO NOT have to provide a
written statement explaining their "reasonable cause" for late filing.  I have
no idea why the IRS does not mention this "Transitional Relief" in their
official revocation letter, since Guidestar's analysis of the Auto-Revocation
List suggests that three quarters of revoked non-profits may be eligible for this
favorable treatment.  Visit http://501c3book.org/Regain.html for details about
Sandy Deja's book, Regain Your Tax Exempt Status and Other Options After
IRS Automatic Revocation.
 
Automatic Revocation List
The IRS has finally released the first Automatic Revocation of Exempt
Status List, naming over 275,000  non-profits swept up in a mass revo
ca-
tion of tax exempt status because they failed to file required annual returns. 
As promised, the IRS also issued new guidance.  One item, Notice 2011-43,
offers transitional relief for small organizations.  These small groups will
still have to file exemption applications, but if they do so by December 31,
2012 they need only pay $100, and re-instatement is likely to be retroactive.
A revised edition of Regain Your Tax Exempt Status, reflecting this and
other new guidance, will be available soon. 

                                           

2010 IRS Databook
According to the 2010 IRS "Databook,"  fewer than 60,000 501(c)(3)
applications were processed during fiscal year 2010, a drop of more than
15% from 2009.  More than 81% of (c)(3) applications handled in 2010
were approved.  This is the highest approval rate since fiscal year 2000.
                                          
Last year the U.S. Treasury Department established a website that allowed
folks to comment on tax forms: http://www.pracomment.gov/.  The site was 
was accepting comments on Form 1023 until recently.  Now that the comment
period has ended, we may be hearing soon that Form 1023, which has not
changed significantly since 2004, is being revised.
                                           
Cyber Assistant Delayed 
The 2011 fee schedule released by the IRS (Revenue Procedure 2011-8) 
specifically says that the Cyber Assistant will not be made available during 2011.
The Cyber Assistant tool will guide applicants through the Form 1023, providing
continuation sheets for lengthy responses, cover sheets for attachments,
and relevant taxpayer education.  When this tool becomes available, Cyber
Assistant-aided applications will have to be printed out and submitted in the usual 
way; special bar-coding on the printed form will alert the IRS that the applicant
is eligible for a reduced User Fee.
  

Corrected Mailing Address
On December 2, 2008, the IRS announced a new mailing address for filing
Forms 1023, 1024, 8718 and 8734:
Internal Revenue Service
P. O. Box 12192
Covington, KY 41012-0192
Advance Rulings Eliminated!
The IRS has eliminated the advance ruling process described in Part X
of Form 1023. The IRS will process exemption applications submitted
before the new regulations under the new rules, and will revise application
forms and instructions to incorporate the new requirements. For additional
details, visit the charities page of the IRS website at
www.irs.gov.

New Filing Requirement for Small Organizations
The 990-N was formally launched February 4, 2008. For additional details,
scroll down and click on the page for E-Postcard/990-N.

Continuing Delays
IRS Director of Exempt Organizations: "Over the past several years,
the number of applications for tax-exempt status has continued to rise.
The increase in applications, coupled with the need to scrutinize applications
more closely to ensure that the organization qualifies for tax-exempt status,
has resulted in a backlog of cases awaiting assignment... While we are
working to reduce the backlog, we recognize that applicants may be
frustrated by the wait time." Additional information about processing
delays is available on the IRS website at
Where Is My Exemption
Application?

Praise for www.form1023help.com

Great site...I needed to confirm a few things (second opinion)
and found your site to be an effective resource...Well done,
comprehensive & easy to follow. 
Dale Schroedetski, Recently I, Inc

This is really good! I'm sending it out on our list serve...Thanks for
your good work! 
Barbara Gerson
Financial Support for Nonprofit Management (NY)

I have filled out hundreds of these 1023s for charter schools, and
just when I thought I knew everything, I come across a very
helpful website.  Thanks for the hard work that went into this site. 
Phillip and Suzy Murray

I was greatly surprised to find such a terrific site!
Lois Songer

...the site is a keeper. Thanks.
Marty, LAMA Associates

Thank you for all of your information regarding the 501(c)(3)
application process.  The materials were extremely helpful!
N. Wulfers.

This is a fantastic resource! Our application (for a new school)
was all put together; after reading your inquiry letter information,
I was able to include a few additional documents that should help
us through without an inquiry on these points.
Meghan in Portland, OR

You have really adopted the essence of the Information Age:
giving out valuable information free to the public thereby
empowering people...
Josh Wagner

There are limits on how much information a website can provide.
Prepare Your Own 501(c)(3) Application, an ebook by Sandy Deja,
has more than double the information, including worksheets, samples,
research hints and useful links. Find out more at www.501c3Book.com.
   
This page last updated January, 2014.