Application for Recognition of Exemption under Section 501(c)(3) as Part of the Electronic Filing Requirement
As part of an ongoing effort to improve service, efficiency and quality for tax-exempt organizations, the IRS has made revisions to Form 1023 (Rev Jan 2020). Beginning January 31, 2020, the revised Form 1023 must be filed electronically, and the required user fee must be paid through a bank account or debit/credit card online at Pay.gov.
However, the IRS has provided a 90-day grace period in which the paper version of the Form 1023 (Rev 12-2017) will remain viable. The 90-day grace period begins on the effective date of the guidance, which is expected to be February 18, 2020.
An overview of the e-filing mechanics and the revised electronic Form 1023 can be found here.
The revised electronic Form 1023 does contain variances from the paper filed Form 1023:
The online Form 1023 should streamline the IRS exemption review process and increase the efficiency and quality of their work. However, the new electronic process may be more cumbersome for the organization and the tax professionals assisting them.
If you have any questions, please contact VonLehman tax expert, Bryan Pautsch, at email@example.com or 800.887.0437.