News affecting 501(c)(3) Applications
New Interactive 501(c)(3) Application Form
September 6, 2013, the IRS released a draft Form i1023, an
"interactive" 501(c)(3) application.
The IRS is seeking feedback on
the form, which cannot be printed or filed yet, and hopes to
the final form later this year. For more information, click here
Prepare Your Own 501(c)(3) Application revised for 2012
Sandy Deja's ebook, Prepare Your Own 501(c)(3) Application, has just been
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
Your Exemption Letter, and Next New Form 1023.
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
been updated. New material includes three chapters for folks who are filing
to have their status reinstated after Automatic Revocation, and four new
Paperwork Burden of Form 1023; Recycling A Prior
Application; Replacing Your Exemption Letter,
and Next New Form 1023.
IRS User Fees Unchanged
The IRS has just released Revenue Procedure 2012-8, which provides details
about IRS User Fees. All fees for exemption applications remain the same:
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
meet IRS guidelines for Transitional Relief)
The new Revenue Procedure does not mention the Cyber
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
previously required a letter application. A timely application for
from Form 990 filing requirements," or "Reclassification of
status," might help some organizations avoid automatic revocation
future. Since January, 2011, these two types of rulings have required a
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your organization's status has been revoked, and you will have to re-apply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
Sandy Deja's book, Regain Your Tax Exempt Status and Other Options
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 revoca-
tion of tax exempt status because they failed to file required annual returns.
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,
they need only pay $100, and re-instatement is likely to be retroactive.
2010 IRS Databook
other new guidance, will be available
According to the
2010 IRS "Databook," fewer than 60,000 501(c)(3)
were processed during fiscal year 2010, a drop of more than
15% from 2009.
More than 81% of (c)(3) applications handled in 2010
This is the highest approval rate since fiscal year 2000.
Last year the U.S. Treasury Department established a website that allowed
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
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.
Assistant tool will guide applicants through the Form 1023, providing
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.
2, 2008, the IRS announced a new mailing address for filing
Forms 1023, 1024, 8718 and 8734:
Internal Revenue Service
P. O. Box 12192
The IRS has eliminated the advance ruling process described in Part
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
visit the charities page of the IRS website at www.irs.gov.
New Filing Requirement
for Small Organizations
990-N was formally launched February 4, 2008. For additional details,
scroll down and click on the page for E-Postcard/990-N.
IRS Director of Exempt Organizations: "Over the past
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