If you are the owner of a non-profit organization you still have to prepare the required tax forms. Some of these forms are aimed to verify the tax-exempt status of the organization. The IRS wants to be sure that the business meets all the requirements for exemption from federal income tax.
What is the Purpose of Form 1023-EZ?
Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, is issued by the IRS to help small organizations apply for tax-exempt status. To verify the eligibility for completing the form, the representative of a certain organization should look through the Eligibility Worksheet connected to 1023-EZ.
Keep in mind that applying for the tax-exempt status doesn’t guarantee that you will get it. Besides this, the IRS can ask for additional documents once they’ve accepted the application. For example, you may have to present bills of sale and checks received during a designated period of time.
When is Form 1023-EZ Due?
The streamlined application must be filed within twenty-seven months from the date of organization’s formation. If the IRS approves it, the registration date is considered to be the day of exemption.
What Information do I Need to Provide in Form 1023-EZ?
IRS Form 1023-EZ has six parts which need to be completed:
- The first part of the form requires the applicant’s identification details. The preparer has to add their name, address, EIN, the month when a tax year ends and the contacts of the organization.
- The second part of the form contains details of the organization’s structure.
- The third part provides information about the applicant’s specific activities.
- The fourth part has information about the foundation’s classification.
- The fifth part is called the Reinstatement After Automatic Revocation.
- Finally, the sixth part requires the signature of the authorized person.
What do I Do with the Form after its Completion?
Form 1023-EZ is filed with the IRS electronically.