New Regulations and Procedures for Small 501(c)(3) Organizations

The IRS has announced new temporary and proposed regulations providing a quicker process for eligible entities applying for 501(c)(3) tax-exempt status.  The temporary regulations, whose text mirrors the proposed regulations, relax the requirement that an organization filing for tax-exempt status must provide a statement supporting its claim.  Under the new regulations, an eligible entity may apply for 501(c)(3) status by submitting a  Fom 1023-EZ in accordance with newly issued Rev. Proc. 2014-40.  The procedure is generally applicable to entities with $250,000 or fewer in assets and $50,000 or less in gross receipts.  Form 1023-EZ must be filed online and is three pages long, rather than the twenty-six page Form 1023.

Posted by David Staggs, Associate Editor, Wealth Strategies Journal