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 Pay.gov, 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.