IRS Reduces User Fee for Small Organizations Filing Form 1023-EZ for §501(c)(3) Status for Last Six Months of 2016

In Revenue Procedure 2016-32 the IRS announced a reduction in the 2016 user fee for certain exempt organization applications effective July 1, 2016.

The fee for organizations filing Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code will be reduced from $400 to $275. 

That form, which must be filed electronically on, is available to exempt organizations that:

  • Have annual gross receipts that do not exceed $50,000;
  • Assets are no more than $250,000 and
  • Meets various other criteria described in the eligibility worksheet found at the end of the Instructions for Form 1023-EZ.

Organizations that do not meet the requirements to file the Form 1023-EZ must complete and file the longer Form 1023. 

The original user fee for 2016 was found in Revenue Procedure 2016-8 which is modified by this Revenue Procedure.