Electronic filing mandated for Sec. 501(c)(3) applications

By Dave Strausfeld, J.D.

The IRS announced Friday that, effective Jan. 31, 2020, applications for tax-exempt status under Sec. 501(c)(3) must only be submitted electronically (Rev. Proc. 2020-8). Taxpayers will no longer be able to file Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, on paper, but must complete and submit the form through Pay.gov. However, under a transition rule, the IRS will accept for processing a completed paper Form 1023 accompanied by the correct user fee, if the submission of the paper form is postmarked on or before 90 days after Jan. 31.

To submit Form 1023, a taxpayer will need to:

1. Register for an account on Pay.gov;

2. Enter "1023" in the search box and select Form 1023; and

3. Complete the form.

An electronic submission requirement has applied to Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, since 2014. The Form 1023-EZ streamlined application process is available for U.S. organizations with assets of $250,000 or less and annual gross receipts of $50,000 or less.

Dave Strausfeld, J.D., (David.Strausfeld@aicpa-cima.com) is a Tax Adviser senior editor.

Newsletter Articles

50th ANNIVERSARY

50 years of The Tax Adviser

The January 2020 issue marks the 50th anniversary of The Tax Adviser, which was first published in January 1970. Over the coming year, we will be looking back at early issues of the magazine, highlighting interesting tidbits.

PRACTICE MANAGEMENT

2019 tax software survey

This annual survey shows how CPAs rate the tax preparation software they used during last tax season and how it handled the recent tax law changes.