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IRS Releases Shorter, Easier Tax-Exempt Status Form

Sep 27, 2017, 10:53 AM

We are pleased to share with you that after National PTA’s extensive effort to advocate for an easier process for small charities applying for and reinstating 501(c)(3) tax-exempt status, the IRS has delivered Form 1023-EZ. Unlike the original 26-page Form 1023, the new Form 1023-EZ, which is available as of July 1, is a mere three pages. The IRS estimates that as many as 70 percent of all applicants will qualify to use the new streamlined form. Most organizations with gross receipts of $50,000 or less and assets of $250,000 or less are eligible. This change will not only enable the IRS to speed up the approval process for these smaller charities, but also will result in additional resources to review applications from larger organizations.

In addition to advocating for a more streamlined application, earlier this spring, National PTA provided feedback to the IRS on the potential form, including suggesting to reduce the gross receipts threshold to $50,000. National PTA will continue to work with the IRS to make the reinstatement process as seamless as possible for those PTAs that are struggling with revocation.

While the new application must be completed online and submitted at pay.gov, National PTA has provided a pre-populated Form 1023-EZ to be used as an example as well as simplified instructions which PTA members can access by visiting National PTA’s Tax-Exempt Revocation webpage, PTA.org/taxhelp. National PTA also will be providing a webinar at the end of August. Look for more information on the webinar to come soon!

The new form should make the application process for 501(c)(3) tax-exempt status much simpler for PTAs. We encourage you to share this information with local leaders across your state. For questions and more information, send me an email at lwhite@pta.org.

Lindsey White is a senior accountant for National PTA.