IRS FORM 1023-EZ CHECKLIST

STREAMLINED APPLICATION FOR RECOGNITION OF EXEMPTION

UNDER SECTION 501(c)(3)

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OVERVIEW

About Form 1023-EZ

Form 1023-EZ is a streamlined application for recognition of tax-exempt status under Section 501(c)(3). It is available to smaller organizations that meet specific eligibility requirements.

Filing Information

Filing Method: Electronic filing through Pay.gov (mandatory)
Filing Fee: $275 (as of 2025; verify current fee)
Processing Time: Typically 2-4 weeks
IRS Contact: Exempt Organizations Customer Account Services: 877-829-5500

Key Differences: Form 1023-EZ vs. Form 1023

Feature	Form 1023-EZ	Form 1023
Filing Fee	$275	$600
Processing Time	2-4 weeks	3-6 months
Length	3 pages	26+ pages
Document Uploads	None required	Required
Revenue Threshold	< $50,000/year	Any amount
Asset Threshold	< $250,000	Any amount
Scrutiny Level	Lower	Higher

[// GUIDANCE: While Form 1023-EZ is faster and cheaper, it provides less certainty. The IRS has increased scrutiny of 1023-EZ applications. Consider Form 1023 for organizations with complex activities or those wanting more certainty.]

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PART I - ELIGIBILITY WORKSHEET

[// GUIDANCE (CRITICAL): You MUST complete this worksheet to determine eligibility. If you answer "Yes" to ANY question, you are NOT eligible for Form 1023-EZ and must file Form 1023.]

Organizations NOT Eligible for Form 1023-EZ

Answer each question. If you answer "Yes" to ANY question, STOP - you must file Form 1023.

Size Thresholds

☐ 1. Does the organization project gross receipts to exceed $50,000 in any of the next 3 years?
☐ Yes - NOT ELIGIBLE
☐ No - Continue

☐ 2. Has the organization had gross receipts exceeding $50,000 in any of the past 3 years?
☐ Yes - NOT ELIGIBLE
☐ No - Continue

☐ 3. Does the organization have total assets in excess of $250,000?
☐ Yes - NOT ELIGIBLE
☐ No - Continue

Organization Type

☐ 4. Is the organization a church, convention or association of churches, or integrated auxiliary of a church?
☐ Yes - NOT ELIGIBLE (but churches are not required to apply)
☐ No - Continue

☐ 5. Is the organization a school, college, or university?
☐ Yes - NOT ELIGIBLE
☐ No - Continue

☐ 6. Is the organization a hospital or medical research organization?
☐ Yes - NOT ELIGIBLE
☐ No - Continue

☐ 7. Is the organization an agricultural research organization?
☐ Yes - NOT ELIGIBLE
☐ No - Continue

☐ 8. Is the organization a supporting organization under Section 509(a)(3)?
☐ Yes - NOT ELIGIBLE
☐ No - Continue

☐ 9. Is the organization a private foundation?
☐ Yes - NOT ELIGIBLE
☐ No - Continue

Structure

☐ 10. Is the organization organized under the laws of a foreign country?
☐ Yes - NOT ELIGIBLE
☐ No - Continue

☐ 11. Is the organization's mailing address outside the United States?
☐ Yes - NOT ELIGIBLE
☐ No - Continue

☐ 12. Is the organization a successor to or controlled by a for-profit entity?
☐ Yes - NOT ELIGIBLE
☐ No - Continue

☐ 13. Was the organization formed under an LLC operating agreement?
☐ Yes - NOT ELIGIBLE
☐ No - Continue

Activities

☐ 14. Does the organization conduct or fund activities outside the United States (other than grantmaking)?
☐ Yes - NOT ELIGIBLE
☐ No - Continue

☐ 15. Is the organization requesting exemption as an HMO?
☐ Yes - NOT ELIGIBLE
☐ No - Continue

☐ 16. Is the organization requesting exemption as an ACO (Accountable Care Organization)?
☐ Yes - NOT ELIGIBLE
☐ No - Continue

☐ 17. Does the organization invest or intend to invest more than 5% of total assets in securities not traded publicly?
☐ Yes - NOT ELIGIBLE
☐ No - Continue

☐ 18. Does the organization participate or intend to participate in partnerships or joint ventures with taxable entities?
☐ Yes - NOT ELIGIBLE
☐ No - Continue

☐ 19. Does the organization sell or intend to sell carbon credits or carbon offsets?
☐ Yes - NOT ELIGIBLE
☐ No - Continue

☐ 20. Is the organization operating under a fiscal sponsor?
☐ Yes - NOT ELIGIBLE
☐ No - Continue

☐ 21. Does the organization have a pre-existing contract or obligation to merge with a for-profit entity?
☐ Yes - NOT ELIGIBLE
☐ No - Continue

☐ 22. Is the organization involved in providing housing?
☐ Yes - Additional analysis required
☐ No - Continue

☐ 23. Does the organization provide credit counseling services?
☐ Yes - NOT ELIGIBLE
☐ No - Continue

☐ 24. Is the organization a donor-advised fund?
☐ Yes - NOT ELIGIBLE
☐ No - Continue

Eligibility Determination

☐ If you answered "No" to ALL questions above, you ARE ELIGIBLE for Form 1023-EZ.

☐ If you answered "Yes" to ANY question, you are NOT ELIGIBLE and must file Form 1023.

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PART II - PRE-APPLICATION REQUIREMENTS

Before You Begin

☐ Form Legal Entity: Organization must be legally formed under state law
- State of incorporation: ________________________
- Date formed: ________________________

☐ Obtain EIN: Apply for Employer Identification Number (Form SS-4 or online)
- EIN: ___ - _______________

☐ Create Pay.gov Account: Required for electronic filing
- Account created: ☐ Yes

☐ Prepare Organizing Documents: While not uploaded, you MUST have:
- Articles of Incorporation with required IRS language
- Bylaws adopted

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PART III - ORGANIZING DOCUMENT REQUIREMENTS

[// GUIDANCE (CRITICAL): Even though Form 1023-EZ does not require uploading documents, your Articles of Incorporation MUST contain specific language. The IRS may later request copies and revoke status if the required language is missing.]

Required Language in Articles of Incorporation

☐ Purpose Clause

Your Articles MUST limit purposes to those described in Section 501(c)(3):

Sample Language:
"This corporation is organized exclusively for charitable, religious, educational, and/or scientific purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code."

☐ Verified: Articles contain purpose limitation clause

☐ Dissolution Clause

Your Articles MUST dedicate assets to exempt purposes upon dissolution:

Sample Language:
"Upon dissolution of the corporation, assets shall be distributed for one or more exempt purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code, or shall be distributed to the federal government, or to a state or local government, for a public purpose."

☐ Verified: Articles contain dissolution clause

☐ Private Inurement Prohibition

Sample Language:
"No part of the net earnings of the corporation shall inure to the benefit of, or be distributable to its members, trustees, officers, or other private persons."

☐ Verified: Articles or Bylaws contain private inurement prohibition

☐ Political Activity Restrictions

Sample Language:
"No substantial part of the activities of the corporation shall be the carrying on of propaganda, or otherwise attempting to influence legislation, and the corporation shall not participate in, or intervene in any political campaign on behalf of (or in opposition to) any candidate for public office."

☐ Verified: Articles or Bylaws contain political activity restrictions

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PART IV - FORM 1023-EZ INFORMATION REQUIREMENTS

Section 1: Identification of Applicant

☐ Legal Name: ________________________________________________________________

☐ EIN: ___ - _______________

☐ Mailing Address:
_______________________________________________________________________________
_______________________________________________________________________________

☐ Month and Year of Legal Formation: ________________________

☐ State of Legal Domicile: ________________________

Section 2: Organizational Structure

☐ Type of Organization:
☐ Corporation
☐ Unincorporated Association
☐ Trust

☐ Governing Document Date: ________________________

☐ Organizing document contains required purpose clause: ☐ Yes ☐ No

☐ Organizing document contains required dissolution clause: ☐ Yes ☐ No

☐ Organization bylaws have been adopted: ☐ Yes ☐ No

Section 3: Your Specific Activities

☐ Description of Activities (brief summary):
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________

☐ Organization is organized and operated exclusively for exempt purposes: ☐ Yes

☐ Organization has not conducted and will not conduct prohibited activities: ☐ Yes

☐ All activities will further exempt purposes: ☐ Yes

Section 4: Foundation Classification

☐ Organization expects to qualify as a public charity under:
☐ Section 509(a)(1) and 170(b)(1)(A)(vi) - Publicly supported (1/3 support test)
☐ Section 509(a)(2) - Gross receipts test
☐ Section 509(a)(1) and 170(b)(1)(A)(i) - Church
☐ Section 509(a)(1) and 170(b)(1)(A)(ii) - School
☐ Other: ________________________

Section 5: Reinstatement After Automatic Revocation

☐ Is this application being filed to reinstate exemption after automatic revocation?
☐ Yes - provide date of revocation: ________________________
☐ No

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PART V - ATTESTATIONS

[// GUIDANCE: Form 1023-EZ requires you to attest (certify) that certain statements are true. Make sure you understand and can truthfully make these attestations.]

Required Attestations

☐ I attest that I am authorized to sign this application on behalf of the organization.

☐ I attest that all information provided is true, correct, and complete to the best of my knowledge.

☐ I attest that the organization's organizing document contains the required provisions limiting its purposes to those described in Section 501(c)(3) and dedicating its assets to Section 501(c)(3) purposes upon dissolution.

☐ I attest that the organization is organized and operated exclusively for one or more of the purposes described in Section 501(c)(3).

☐ I attest that no part of the organization's net earnings will inure to the benefit of any private shareholder or individual.

☐ I attest that the organization will not conduct any of the following activities:
- Attempt to influence legislation as a substantial part of activities
- Participate in any political campaign for or against any candidate for public office
- Provide commercial-type insurance
- Operate a bingo hall
- Operate for the primary purpose of conducting a trade or business not related to its exempt purpose

☐ I attest that the organization's annual gross receipts have not exceeded and are not expected to exceed $50,000 in any of the current year or the two prior years.

☐ I attest that the organization's total assets do not exceed $250,000.

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PART VI - FILING CHECKLIST

Before Filing

☐ Completed Eligibility Worksheet - confirmed eligible for Form 1023-EZ
☐ Organization is legally formed under state law
☐ EIN obtained
☐ Articles of Incorporation contain required IRS language
☐ Bylaws adopted
☐ Pay.gov account created
☐ Payment information ready ($275 filing fee)

Filing Process

1. ☐ Go to Pay.gov (www.pay.gov)
2. ☐ Search for "Form 1023-EZ"
3. ☐ Complete the online form
4. ☐ Review all entries for accuracy
5. ☐ Submit attestations
6. ☐ Pay filing fee ($275)
7. ☐ Receive confirmation number: ________________________
8. ☐ Print/save confirmation for records

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PART VII - AFTER FILING

What to Expect

Confirmation: You will receive immediate confirmation of submission

Processing: Form 1023-EZ is typically processed within 2-4 weeks

Determination Letter: If approved, IRS will issue a determination letter recognizing 501(c)(3) status

Possible Follow-up: IRS may request additional information or copies of organizing documents

If Approved

☐ Keep determination letter in permanent records
☐ Make Form 1023-EZ and determination letter available for public inspection
☐ File Form 990-N (e-Postcard) or Form 990-EZ annually
☐ Apply for state tax exemptions
☐ Register for charitable solicitation (if required by state)

Annual Filing Requirements

Organizations approved via Form 1023-EZ typically file:

Gross Receipts	Form Required
$50,000 or less	Form 990-N (e-Postcard)
$50,001 - $200,000	Form 990-EZ
Over $200,000	Form 990

Due Date: 15th day of the 5th month after fiscal year end (e.g., May 15 for calendar year)

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PART VIII - IMPORTANT WARNINGS

Risks of Form 1023-EZ

☐ Less Scrutiny = Less Certainty: The streamlined process means less IRS review. Issues may surface later during audit.

☐ Document Requirements Still Apply: Even though documents are not submitted, they MUST exist with required language.

☐ Higher Revocation Risk: Organizations approved via 1023-EZ have higher rates of later revocation.

☐ No Detailed Determination Letter: The determination letter is generic and provides less specific guidance.

When to File Form 1023 Instead

Consider filing the full Form 1023 if:
- Organization has complex activities
- Activities could be questioned as not charitable
- Organization wants detailed IRS review and guidance
- Organization anticipates significant growth
- Donors or grantors prefer full Form 1023 approval
- Organization wants maximum certainty

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IRS RESOURCES

Form 1023-EZ and Instructions: www.irs.gov/forms-pubs/about-form-1023-ez

Eligibility Worksheet: Included in Form 1023-EZ Instructions

Publication 557: Tax-Exempt Status for Your Organization
www.irs.gov/publications/p557

Pay.gov: www.pay.gov

EO Customer Account Services: 877-829-5500

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RECORD KEEPING

After filing, maintain the following records:

☐ Copy of filed Form 1023-EZ (print from Pay.gov)
☐ Pay.gov confirmation
☐ IRS determination letter (when received)
☐ Articles of Incorporation (certified copy)
☐ Bylaws (signed copy)
☐ Meeting minutes
☐ Evidence of state formation

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