Printable Form 2026

IRS Instruction 1023-EZ

IRS Instruction 1023-EZ – Are you starting a nonprofit organization and seeking tax-exempt status under Section 501(c)(3) of the Internal Revenue Code? Navigating the IRS application process can feel overwhelming, but Form 1023-EZ offers a simplified, streamlined path for eligible small organizations. This SEO-optimized guide breaks down the IRS Instructions for Form 1023-EZ, covering eligibility, filing steps, requirements, and tips to avoid common pitfalls. Whether you’re forming a charity, educational group, or community initiative, understanding these instructions ensures a smoother application for recognition of exemption.

Based on the latest IRS resources, including the January 2025 revision of the instructions, this article provides actionable insights to help you apply confidently. Let’s dive in.

What Is IRS Form 1023-EZ and Why Use It?

IRS Form 1023-EZ, officially the Streamlined Application for Recognition of Exemption Under Section 501(c)(3), is a shortened version of the full Form 1023. Introduced to reduce paperwork for smaller nonprofits, it allows qualifying organizations to request federal income tax exemption more efficiently.

The primary purpose of Form 1023-EZ is to confirm your organization’s eligibility for tax-exempt status, enabling benefits like tax-deductible donations and exemption from federal income taxes. Unlike the detailed Form 1023, which requires extensive narratives and attachments, Form 1023-EZ relies on checkboxes and attestations, making it ideal for startups with limited resources.

Key advantages include:

  • Faster processing: Many applications receive determinations in as little as two to four weeks.
  • Lower user fee: Typically $275, compared to $600 for Form 1023 (check current fees on IRS.gov).
  • Electronic filing only: Simplifies submission via Pay.gov.

However, not all nonprofits qualify—churches, schools, hospitals, and larger entities must use Form 1023. Organizations with gross receipts normally not exceeding $5,000 annually may even skip filing altogether and claim exemption by default.

Who Is Eligible to File Form 1023-EZ?

Eligibility is the first hurdle for using Form 1023-EZ. Only certain organizations organized exclusively for 501(c)(3) exempt purposes—such as charitable, religious, educational, scientific, or literary activities—can apply. Sole proprietorships, partnerships, and loosely affiliated groups are ineligible; focus on corporations, unincorporated associations, or trusts.

To confirm, complete the Form 1023-EZ Eligibility Worksheet (included in the instructions but not submitted). Answer “No” to all 34 questions to qualify. Common disqualifiers include:

  • Seeking status as a church, school, hospital, or supporting organization.
  • Involvement in non-exempt activities like substantial lobbying or political campaigning.
  • Foreign organizations or those with complex structures like LLCs (though LLCs can seek exemption, they must use Form 1023).

If any answer is “Yes,” switch to the full Form 1023. Retain your completed worksheet for records, as the IRS may request it during reviews.

Pro tip for SEO and searchers: If you’re wondering “am I eligible for Form 1023-EZ,” download the worksheet from IRS.gov and self-assess before investing time.

Gross Receipts and Asset Thresholds for Qualification

A core eligibility criterion revolves around your organization’s size. To file Form 1023-EZ, you must attest that:

  • Projected annual gross receipts will not exceed $50,000 in each of the next three years.
  • Actual gross receipts did not exceed $50,000 in any of the past three years.
  • Total assets (at fair market value) are $250,000 or less.

Gross receipts include all revenue from sources like contributions, program fees, and investment income—before subtracting expenses. Total assets encompass cash, investments, real estate, equipment, and more.

Exceeding these limits? You’re ineligible and must file Form 1023. For example, a community food bank projecting $60,000 in donations next year would need the full form. Use the worksheet’s projections table to calculate accurately.

This threshold ensures the streamlined process targets truly small nonprofits, promoting efficiency in the 501(c)(3) exemption application.

Step-by-Step Guide to Completing and Filing Form 1023-EZ

Filing Form 1023-EZ is electronic-only and straightforward. Follow these steps from the official instructions:

  1. Verify Eligibility: Complete the worksheet as described.
  2. Obtain an EIN: If you don’t have an Employer Identification Number, apply free at IRS.gov/EIN or via Form SS-4. It’s required for submission.
  3. Gather Information: Prepare details for Parts I-VI (see below).
  4. Access the Form: Go to Pay.gov and search “Form 1023-EZ,” or use IRS.gov/Form1023EZ.
  5. Complete the Form:
    • Part I: Basic info (name, address, EIN).
    • Part II: Organizational structure (entity type, formation date, state of organization, purpose clause from organizing documents).
    • Part III: Activities (NTEE code, primary purpose).
    • Part IV: Foundation classification (public charity vs. private—most starters are public charities).
    • Part V: Reinstatement (if previously revoked).
    • Part VI: Signature by an authorized officer, with date and penalties of perjury statement.
  6. Pay the Fee: Use bank account or credit/debit card via Pay.gov.
  7. Submit and Print: Review, sign electronically, submit, and download a copy for records.

The entire process takes 15-30 minutes online. No mailed or printed forms are accepted—avoid delays by filing digitally.

Required Information, Attachments, and Attestations

Unlike Form 1023, Form 1023-EZ requires minimal attachments—none, in fact! Instead, you provide attestations via checkboxes:

  • Confirmation of eligibility.
  • Gross receipts and asset thresholds met.
  • Understanding of 501(c)(3) rules (no private inurement, no substantial non-exempt activities, etc.).
  • Organizing documents limit purposes to exempt activities and include proper dissolution clauses.

Include:

  • Officer, director, or trustee names and addresses.
  • A valid purpose clause from your articles of incorporation or bylaws.
  • NTEE code for your activities (e.g., T20 for Christian organizations).

Ensure your organizing documents comply; amend if needed per state law. For dissolution, assets must go to another 501(c)(3) or government entity.

Payment Details and Where to File Form 1023-EZ?

The user fee is non-refundable and paid during electronic submission. As of 2026, it’s $275—verify exact amounts at IRS.gov/charities-non-profits/user-fees-for-tax-exempt-and-government-entities-division or by calling 877-829-5500.

File exclusively online at Pay.gov or IRS.gov/Form1023EZ. No exceptions for paper filings, even for hardships.

What Happens After Filing: Approval, Reviews, and Next Steps?

Submission doesn’t guarantee approval—the IRS may reject incomplete applications or select yours for a pre-determination review (random sample), requesting more info via Form 1023. Expect a determination letter in 1-3 months typically.

If approved:

  • Effective date: From your formation date if filed within 27 months of formation month-end; otherwise, filing date.
  • Public disclosure: Your application becomes inspectable (redact SSNs).
  • Ongoing compliance: File Form 990-N annually if gross receipts ≤$50,000; miss three years, and exemption auto-revokes.

For revocations, use Part V for reinstatement under specific IRS procedures. Donors can rely on your determination letter until revoked.

Common Mistakes to Avoid When Using Form 1023-EZ Instructions

Even with streamlining, errors can delay or deny your 501(c)(3) exemption. Top pitfalls include:

  • Filing despite a “Yes” on the eligibility worksheet.
  • Forgetting an EIN or using SSNs (publicly disclosed).
  • Inaccurate gross receipts projections.
  • Incomplete attestations or unauthorized signatures.
  • Non-compliant organizing documents (e.g., missing dissolution clause).
  • Assuming approval without post-filing compliance like annual returns.

Double-check against the instructions to sidestep these.

Recent Updates to IRS Instructions for Form 1023-EZ (2025 Revision)

The January 2025 revision includes:

  • Updated Eligibility Worksheet: Modified Question 29; added Questions 31-34 on specific activities.
  • References to new revenue procedures (e.g., Rev. Proc. 2024-5 for document amendments, Rev. Proc. 2024-22 for state dissolution laws).
  • Clarifications on private foundation rules and donor reliance (Rev. Proc. 2018-32).
  • No major fee changes as of early 2026.

Monitor IRS.gov for further changes.

Final Thoughts: Streamline Your Path to 501(c)(3) Status

IRS Form 1023-EZ democratizes tax exemption for small nonprofits, cutting bureaucracy while upholding integrity. By following these instructions for Form 1023-EZ, you can focus on your mission sooner. Download the PDF at IRS.gov/pub/irs-pdf/i1023ez.pdf, complete the eligibility check, and file today.

Need help? Consult a tax professional or IRS resources. Ready to launch your exempt organization? Start with eligibility—your streamlined 501(c)(3) application awaits.

This guide is for informational purposes; always refer to official IRS materials for your situation.