As of January 31, 2020, the Internal Revenue Service (the “IRS”) revised the 1023 application for 501(c)3 tax-exempt status submission process to be online instead of by paper. The IRS granted a 90-day grace period for nonprofits to submit their paper applications. The deadline for the IRS to accept paper 1023 applications is April 30, 2020. If you try to submit the paper application after this date the IRS will reject the paper application and you will be required to resubmit the 1023 application online, which will delay the IRS’s determination. After April 30, 2020, nonprofits must submit their 1023 application via Pay.gov.
If your organization chooses to file online or misses the deadline, the IRS has provided an Overview of Form 1023 e-Filing video presentation for how to file the new application. The 1023 e-form has some new sections that the paper application did not address and has new supplemental material requirements. Further, the 1023 e-form is interactive and will update the questions asked based on your answers.
Due to CoVID-19 and the safety precautions taken by the IRS, there has been an increased delay in processing paper 1023 applications. The IRS is highly encouraging nonprofits to submit the 1023 application online to help cut down on processing times. If your organization is in the early stages of the 1023 application or is looking to cut down on the processing time for its application, applying through the online application may help to decrease the IRS’s processing time.
If you would like help with finalizing your paper 1023 application before the deadline or with applying online, or if you have any other tax-exempt or nonprofit law questions, feel free to reach out to firstname.lastname@example.org.
The above article is for general information purposes only and should not be relied upon as specific legal advice. This article, or using the email@example.com form, does not in any way form an attorney-client relationship. If you have any questions or would like to learn more, please contact Tara M. Vitale at firstname.lastname@example.org.