Help Filling Out Your 501(c)(3) Application

Welcome! This website, posted as a public service by Sandy Deja, author of "Prepare Your Own 501(c)(3) Application", is designed to help new non-profit organizations complete the Application for Exempt Status Under Section 501(c)(3) of the Internal Revenue Code.

News affecting 501(c)(3) Applications Prepare Your Own 501(c)(3) Application revised for 2012 Sandy Deja's ebook, Prepare Your Own 501(c)(3) Application, has just been revised for 2012.  Links, statistics, and the list of 1023's on the Internet have been updated.  New material includes three chapters for folks who are filing to have their status reinstated after Automatic Revocation, and four new handbook topics: Paperwork Burden of Form 1023; Recycling A Prior Application; Replacing Your Exemption Letter, and Next New Form 1023. IRS User Fees Unchanged for 2012 The IRS has just released Revenue Procedure 2012-8, which provides details about IRS User Fees. All fees for exemption applications remain the same: - $400 for applicants whose gross receipts average $10,000 or less - $850 for applicants whose gross receipts average more than $10,000 - $3,000 for group exemptions - $100 for small organizations seeking reinstatement after automatic revocation (must meet IRS guidelines for Transitional Relief) The new Revenue Procedure does not mention the Cyber Assistant.   New Form 8940 The IRS has introduced a new form for use by exempt organizations. Form 8940 provides a way to apply for nine different EO-related rulings that previously required a letter application. A timely application for "Exemption from Form 990 filing requirements," or "Reclassification of foundation status," might help some organizations avoid automatic revocation in the future. Since January, 2011, these two types of rulings have required a User Fee of $400.   Did You Receive IRS Notice CP120A? The picture is not quite as bleak as this notice makes it sound.  Although your organization's status has been revoked, and you will have to re-apply if you want reinstatement, the User Fee for small organizations has been reduced to only $100, and small organizations DO NOT have to provide a written statement explaining their "reasonable cause" for late filing.  I have no idea why the IRS does not mention this "Transitional Relief" in their official revocation letter, since Guidestar's analysis of the Auto-Revocation List suggests that three quarters of revoked non-profits may be eligible for this favorable treatment.  Visit http://501c3book.org/Regain.html for details about Sandy Deja's book, Regain Your Tax Exempt Status and Other Options After IRS Automatic Revocation.   Automatic Revocation List The IRS has finally released the first Automatic Revocation of Exempt Status List, naming over 275,000  non-profits swept up in a mass revoca- tion of tax exempt status because they failed to file required annual returns.  As promised, the IRS also issued new guidance.  One item, Notice 2011-43, offers transitional relief for small organizations.  These small groups will still have to file exemption applications, but if they do so by December 31, 2012 they need only pay $100, and re-instatement is likely to be retroactive. A revised edition of Regain Your Tax Exempt Status, reflecting this and other new guidance, will be available soon.                                              2010 IRS Databook According to the 2010 IRS "Databook,"  fewer than 60,000 501(c)(3) applications were processed during fiscal year 2010, a drop of more than 15% from 2009.  More than 81% of (c)(3) applications handled in 2010 were approved.  This is the highest approval rate since fiscal year 2000.                                            Did You Miss Your Chance to Comment on IRS Form 1023? Last year the U.S. Treasury Department established a website that allowed folks to comment on tax forms: http://www.pracomment.gov/.  The site was  was accepting comments on Form 1023 until recently.  Now that the comment period has ended, we may be hearing soon that Form 1023, which has not changed significantly since 2004, is being revised.                                             Cyber Assistant Delayed  The 2011 fee schedule released by the IRS (Revenue Procedure 2011-8)  specifically says that the Cyber Assistant will not be made available during 2011. The Cyber Assistant tool will guide applicants through the Form 1023, providing continuation sheets for lengthy responses, cover sheets for attachments, and relevant taxpayer education.  When this tool becomes available, Cyber Assistant-aided applications will have to be printed out and submitted in the usual  way; special bar-coding on the printed form will alert the IRS that the applicant is eligible for a reduced User Fee.    Corrected Mailing Address On December 2, 2008, the IRS announced a new mailing address for filing Forms 1023, 1024, 8718 and 8734: Internal Revenue Service P. O. Box 12192 Covington, KY 41012-0192 Advance Rulings Eliminated! The IRS has eliminated the advance ruling process described in Part X of Form 1023. The IRS will process exemption applications submitted before the new regulations under the new rules, and will revise application forms and instructions to incorporate the new requirements. For additional details, visit the charities page of the IRS website at www.irs.gov. New Filing Requirement for Small Organizations The 990-N was formally launched February 4, 2008. For additional details, scroll down and click on the page for E-Postcard/990-N. Continuing Delays IRS Director of Exempt Organizations: "Over the past several years, the number of applications for tax-exempt status has continued to rise. The increase in applications, coupled with the need to scrutinize applications more closely to ensure that the organization qualifies for tax-exempt status, has resulted in a backlog of cases awaiting assignment... While we are working to reduce the backlog, we recognize that applicants may be frustrated by the wait time." Additional information about processing delays is available on the IRS website at Where Is My Exemption Application?

Praise for www.form1023help.com Great site...I needed to confirm a few things (second opinion) and found your site to be an effective resource...Well done, comprehensive & easy to follow.  Dale Schroedetski, Recently I, Inc This is really good! I'm sending it out on our list serve...Thanks for your good work!  Barbara Gerson Financial Support for Nonprofit Management (NY) I have filled out hundreds of these 1023s for charter schools, and just when I thought I knew everything, I come across a very helpful website.  Thanks for the hard work that went into this site.  Phillip and Suzy Murray I was greatly surprised to find such a terrific site! Lois Songer ...the site is a keeper. Thanks. Marty, LAMA Associates Thank you for all of your information regarding the 501(c)(3) application process.  The materials were extremely helpful! N. Wulfers. This is a fantastic resource! Our application (for a new school) was all put together; after reading your inquiry letter information, I was able to include a few additional documents that should help us through without an inquiry on these points. Meghan in Portland, OR You have really adopted the essence of the Information Age: giving out valuable information free to the public thereby empowering people... Josh Wagner

There are limits on how much information a website can provide. Prepare Your Own 501(c)(3) Application, an ebook by Sandy Deja, has more than double the information, including worksheets, samples, research hints and useful links. Find out more at www.501c3Book.com.     This page last updated January, 2012.

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