IRS Form 1023-EZ: Eligibility, Instructions & Filing Guide

If you formed a small nonprofit and want the IRS to recognize it as a 501(c)(3) tax-exempt charity, IRS Form 1023-EZ may let you apply online in an afternoon for a $275 user fee instead of spending weeks on the full Form 1023 and paying $600. That is the good news.

 

The bad news is that the “EZ” describes the length of the form, not the legal risk. The IRS does not review your articles of incorporation, bylaws or budget before it approves a Form 1023-EZ. Instead, the person who signs the form swears under penalties of perjury that your organization meets every requirement for 501(c)(3) status. If those sworn statements are wrong, the consequences land on the charity and its donors later, when they are much harder to fix.

 

This article explains what Form 1023-EZ is, who can and cannot use it, every question on the 34-question eligibility worksheet, what each part of the form asks, how to file it, what happens after you file, and the mistakes we see people make. It is based on the current January 2025 revision of the IRS instructions for Form 1023-EZ.

 

 

 

What Is IRS Form 1023-EZ?

 

Form 1023-EZ is the IRS’s short, online-only application that a small organization uses to ask the IRS to recognize it as exempt from federal income tax under Internal Revenue Code §501(c)(3). The IRS introduced it on July 1, 2014 to cut a long backlog of applications from small charities. It is the streamlined version of Form 1023, the full application any 501(c)(3) applicant may use.

 

When the IRS approves a Form 1023-EZ, it mails the organization a determination letter. That letter is the proof donors, grantmakers, banks and government agencies want to see. It confirms that the organization is exempt from federal income tax and that donors can generally deduct their contributions under IRC §170. It also sets the organization’s foundation classification as either a public charity or a private foundation.

 

The form itself is about three pages when printed. It asks for identifying information, a series of check-the-box attestations about your organizing documents and activities, a 250-character mission statement, a classification code, and your foundation classification. You do not upload articles, bylaws, financial statements or a narrative description of your programs.

 

Does Your Organization Need to File at All?

 

Most organizations that want 501(c)(3) status must apply. The IRS instructions recognize three exceptions. These organizations may be treated as tax exempt under 501(c)(3) without filing Form 1023 or Form 1023-EZ:

 

• Churches, including synagogues, temples and mosques.
• Integrated auxiliaries of churches and conventions or associations of churches.
• Organizations that normally have gross receipts of $5,000 or less in each tax year.

 

Being exempt without applying and being able to prove it are two different things. Many banks, grantmakers and donors will not deal with an organization that cannot produce an IRS determination letter. A church that wants a determination letter cannot use Form 1023-EZ. It must file the full Form 1023.

 

Who Can Use Form 1023-EZ: The 34-Question Eligibility Worksheet

 

Before you start the form, you must complete the Form 1023-EZ Eligibility Worksheet printed at the end of the IRS Instructions for Form 1023-EZ. The rule is simple and unforgiving: if you answer “Yes” to any of the 34 questions, you cannot use Form 1023-EZ and must file Form 1023. If you answer “No” to all 34, you may use Form 1023-EZ.

 

You do not submit the worksheet to the IRS, but you check a box at the top of Form 1023-EZ swearing that you completed it and are eligible. Keep the completed worksheet in the organization’s permanent records. The January 2025 revision modified question 29 and added questions 31 through 34. Here is every question in plain English:

 

 

 

The $50,000 Gross Receipts Test Explained

 

Questions 1 and 2 knock out more applicants than any other questions, and they are the ones people most often misunderstand. “Gross receipts” means the total amount the organization receives from all sources during its annual accounting period without subtracting any costs or expenses. Donations, grants, ticket sales, sponsorships, program fees, merchandise sales and investment income all count.

 

Here is the trap. Suppose your charity plans an annual fundraising dinner that sells $40,000 of tickets and sponsorships, and you expect another $15,000 in direct donations. Even if the dinner costs $30,000 to produce, your gross receipts are $55,000. You fail question 1 and must file Form 1023.

 

Question 1 is a projection. You must look at this year and the next two years and make an honest, reasonable forecast. If your business plan, grant applications or board minutes show you expect to raise more than $50,000 in any of those years, answering “No” is a false statement under penalties of perjury. The asset test in question 3 is measured at fair market value and includes cash, receivables, investments, equipment, vehicles, land and buildings. A donated building alone can put an organization over $250,000.

 

Form 1023-EZ vs. Form 1023

 

 

Notice the line “Who decides you qualify.” That is the most important difference. With Form 1023, you tell the IRS what your organization does and the IRS decides whether that qualifies. With Form 1023-EZ, you tell the IRS that you qualify, and the IRS generally takes your word for it, subject to random review and later examination.

 

What You Need Before You Start

 

Gather these items before you open Pay.gov. The form does not save partial work for long, and you cannot submit it without some of them.

 

• A legally formed entity. For a corporation, the IRS requires a “necessary organizing document” showing it was filed with and approved by the state on a specific date. In Arizona that means Articles of Incorporation filed with and approved by the Arizona Corporation Commission under A.R.S. §10-3202 of the Arizona Nonprofit Corporation Act.
• A proper 501(c)(3) purpose clause in the articles that limits your purposes to those allowed by 501(c)(3). The IRS instructions include sample language.
• A clause prohibiting non-exempt activities, private inurement, substantial lobbying and political campaign activity.
• A proper dissolution clause that permanently dedicates your assets to 501(c)(3) purposes or to government for a public purpose if the organization ever dissolves.
• An Employer Identification Number (EIN). You cannot submit Form 1023-EZ without one, even if you have no employees.
• Your tax year. The month your fiscal year ends, which should match your bylaws.
• Names, titles and mailing addresses of your officers, directors or trustees. The form lists up to five.
• A one or two sentence mission statement of 250 characters or less describing what you actually do or definitely plan to do.
• Your NTEE code, the three-character classification code listed at the end of the IRS instructions.
• A five-year revenue forecast by type and source so you can pick the correct foundation classification.
• A Pay.gov account and a bank account or credit/debit card to pay the $275 user fee.
• A decision about who signs. The signer must be an officer, director or trustee who understands every attestation on the form.

 

How to File Form 1023-EZ Step by Step

 

1. Read the current instructions. Download the Instructions for Form 1023-EZ (PDF). The IRS expects you to understand the 501(c)(3) requirements before you attest to them.
2. Complete the 34-question eligibility worksheet. If any answer is “Yes,” stop and prepare Form 1023 instead.
3. Register for a Pay.gov account at Pay.gov.
4. Search for “1023-EZ” in the Pay.gov search box and open the form.
5. Answer every question in Parts I through IV (and Part V only if you are seeking reinstatement after automatic revocation).
6. Preview and save a copy of the completed application before you submit. The IRS recommends printing one for your records.
7. Sign electronically. The authorized officer, director or trustee checks the penalties of perjury box, types his or her name, and enters a title and the date.
8. Pay the $275 user fee through Pay.gov from a bank account or by credit or debit card, and submit.
9. Watch the mail. The IRS mails its determination letter or any request for more information to the mailing address on the application.

 

Every Question Form 1023-EZ Asks, Part by Part

 

Form 1023-EZ opens with three items before Part I. You check a box attesting that you completed the eligibility worksheet, are eligible to file Form 1023-EZ, and have read and understand the requirements to be exempt under 501(c)(3). You then answer whether your gross receipts exceed $50,000 and whether your assets exceed $250,000. A “Yes” to either means you must use Form 1023.

 

Part I. Identification of Applicant

 

 

Part II. Organizational Structure

 

 

Part III. Your Specific Activities

 

 

A “Yes” answer to lines 5 through 12 does not disqualify you from using Form 1023-EZ. It flags an area where the IRS expects you to follow additional rules, and it may increase the chance of follow-up questions.

 

Part IV. Foundation Classification

 

Line 1 asks whether you are applying as a church, school or hospital. If the answer is Yes, you cannot use Form 1023-EZ. Lines 2a, 2b and 2c let you choose a public charity classification, and line 3 is for private foundations. You may check only one box on line 2. The next section explains how to choose.

 

Part V. Reinstatement After Automatic Revocation

 

Complete Part V only if the IRS automatically revoked your exemption because you failed to file required annual returns or Form 990-N notices for three consecutive years. Line 1 is for first-time revocations of organizations eligible to file Form 990-EZ or 990-N that apply within 15 months of the revocation letter or posting, under section 4 of Rev. Proc. 2014-11. Line 2 is for reinstatement under section 7, effective as of the new filing date. Retroactive reinstatement under sections 5 or 6 requires the full Form 1023.

 

Part VI. Signature

 

An officer, director or trustee listed in Part I, line 8 signs electronically by checking the penalties of perjury box, typing his or her name, and entering a title and the date. By signing, that person swears that the application and every attestation in it is true, correct and complete.

 

Choosing Your Foundation Classification

 

Every 501(c)(3) organization is either a public charity or a private foundation. Under IRC §509(a), you are a private foundation unless you qualify as a public charity. The difference matters: private foundations face excise taxes, stricter operating rules, and lower deduction limits for their donors. The IRS instructions warn that you alone are responsible for checking the correct box, and the IRS will process your application using the classification you choose.

 

• Line 2a – Publicly supported charity under §170(b)(1)(A)(vi). Most new charities that rely on donations and grants belong here. Over a 5-year period, at least one-third of your support must come from the general public, government units and other public charities. A single donor’s gifts count as public support only up to 2% of total contributions. If you fall between 10% and one-third, you may still qualify under a facts and circumstances test.
• Line 2b – Section 509(a)(2) public charity. For organizations that earn much of their revenue from activities that further their mission, such as admissions, tuition-like program fees or performances. More than one-third of support must come from the public through gifts and exempt-activity revenue, and no more than one-third may come from investment income and unrelated business income.
• Line 2c – Support organization for a government college or university under §170(b)(1)(A)(iv). For organizations that exist solely to hold and administer property for a state or municipal college or university, and that also meet the line 2a support test.
• Line 3 – Private foundation. If you do not meet a public charity test, you are a private foundation. Your articles must contain the special provisions required by IRC §508(e) prohibiting self-dealing and other private foundation violations, unless state law supplies them. Private operating foundations cannot use Form 1023-EZ.

 

A new organization bases its classification on what it has actually received plus what it reasonably expects to receive in its first five years. If your founder plans to fund most of the budget personally, you may not meet a public support test, and checking line 2a anyway is a misstatement.

 

The 27-Month Rule and Your Effective Date

 

If you file Form 1023-EZ within 27 months after the end of the month in which you were legally formed and the IRS approves it, your exemption is effective retroactively to your formation date. For an Arizona nonprofit corporation, that is the date the Arizona Corporation Commission filed your articles.

 

Example: your articles were filed on March 10, 2026. The month of formation ends March 31, 2026. Add 27 months and your deadline is June 30, 2028. File by then and your exemption reaches back to March 10, 2026, so donations received from day one are generally deductible.

 

Miss the deadline and your exemption starts on the date you submit Form 1023-EZ. Donations and income received before that date are not covered. If you are past 27 months and believe you qualify for an earlier effective date, you must file the full Form 1023 to ask for it. Form 1023-EZ cannot request it.

 

What Happens After You File

 

Filing does not guarantee approval. The IRS may reject an incomplete or incorrectly completed application, contact you for more information, or select your application for a pre-determination review as part of a statistically valid random sample. If the IRS approves, it mails a determination letter confirming your exemption, its effective date and your foundation classification. Your organization will then appear in the IRS Tax Exempt Organization Search database.

 

Once approved, your application and determination letter become public documents. Both the IRS and your organization must make them available for public inspection under IRC §6104. Never put a Social Security number on the form or in correspondence with the IRS about it.

 

Donors can generally rely on your determination letter until the IRS publishes a change in your status, unless a donor was responsible for, or knew about, the act or failure that caused the IRS to revoke it. That protection is one reason the accuracy of your attestations matters so much.

 

Annual Filing Requirements After Approval

 

Approval is the beginning of your compliance obligations, not the end. Under IRC §6033, a 501(c)(3) organization must file an annual return or notice with the IRS:

 

• Form 990-N (e-Postcard) if you are not a private foundation and your gross receipts are normally $50,000 or less.
• Form 990-EZ or Form 990 as your gross receipts and assets grow.
• Form 990-PF if you are a private foundation, regardless of size.
• Form 990-T if you have $1,000 or more of gross unrelated business income.

 

You must file even while your Form 1023-EZ is pending. Failing to file for three consecutive years causes automatic revocation of your exemption. Form 1023-EZ also does not let you request an exception from the annual filing requirement. If you believe you qualify for one, you must use Form 1023 or later file Form 8940.

 

Arizona Issues to Know

 

• Form the right entity first. An Arizona nonprofit corporation is the entity of choice for most charities and is eligible to use Form 1023-EZ. An Arizona LLC is not.
• Get your articles right before you file. Every attestation in Part II depends on the purpose, prohibited-activity and dissolution language in the articles you filed with the Arizona Corporation Commission. Many do-it-yourself articles lack one or more of these provisions, which makes the Form 1023-EZ attestations false.
• State income tax. Arizona’s income tax exemption for nonprofit organizations is found in A.R.S. §43-1201.
• Federal exemption is not a blanket state exemption. A 501(c)(3) determination letter does not by itself exempt you from Arizona transaction privilege tax or property tax. Those exemptions have their own rules.
• Keep your corporation in good standing. An Arizona nonprofit corporation must file its annual report with the Arizona Corporation Commission. A corporation administratively dissolved by the state is a problem for a charity that wants to keep its exemption and its donors.

 

Six Risks of Using Form 1023-EZ

 

We have formed more than 550 Arizona nonprofit corporations that became 501(c)(3) organizations. Form 1023-EZ is a legitimate, useful tool for the right organization. But before you use it, understand what you are trading for the lower fee and the shorter form.

 

• The signer makes legal conclusions under penalties of perjury. The signer swears the organization’s documents and planned activities satisfy 501(c)(3). Most volunteer board members do not have the training to reach those conclusions. With Form 1023, the IRS makes the call.
• The IRS does not look at your documents before approval. If your articles lack a proper purpose or dissolution clause, nobody tells you. The problem surfaces in an audit, a grant review or a donor’s due diligence years later.
• A letter based on inaccurate material information can be challenged later. The IRS can revoke an exemption obtained through incorrect attestations about eligibility, organizing documents, purposes or prohibited activities.
• Some grantmakers look harder at 1023-EZ approvals. Some foundations and institutional donors ask for the organization’s documents and history because the IRS did not review them.
• Projection mistakes. A realistic fundraising plan that crosses $50,000 in gross receipts in any of the next three years makes you ineligible. Optimistic founders often underestimate this.
• Choosing the wrong signer. Do not let one person prepare the form and then hand it to a different board member to sign without understanding it. The signer, not the preparer, makes the sworn statements.

 

 

Form 1023-EZ FAQs

 

How much does it cost to file Form 1023-EZ?

 

The IRS user fee is $275, paid through Pay.gov when you submit the application. The full Form 1023 user fee is $600. Fees are set by the IRS and can change, so confirm the current amount when you file.

 

Can I mail a paper Form 1023-EZ?

 

No. Form 1023-EZ can only be filed electronically through Pay.gov. The IRS will not accept a printed copy.

 

How long does the IRS take to approve Form 1023-EZ?

 

Form 1023-EZ applications are generally processed much faster than Form 1023 applications, often in a matter of weeks. Times vary with IRS workload and whether your application is selected for review or needs more information.

 

Can an Arizona LLC use Form 1023-EZ?

 

No. Worksheet question 7 requires an LLC to answer Yes, which disqualifies it. An LLC that wants 501(c)(3) recognition must file Form 1023.

 

Can a church use Form 1023-EZ?

 

No. A church that wants an IRS determination letter must file Form 1023. Churches are generally treated as tax exempt even without applying.

 

Do I need an EIN before I file?

 

Yes. Pay.gov will not let you submit Form 1023-EZ without the organization’s nine-digit Employer Identification Number.

 

Do I attach my articles of incorporation and bylaws?

 

No. You attest that your organizing document meets the IRS requirements. You must still have proper documents and keep them, because the IRS can ask for them at any time.

 

Who can sign Form 1023-EZ?

 

An officer, director or trustee listed in Part I, line 8 who is authorized to sign for the organization. An attorney or CPA can prepare the form and be the contact person, but cannot sign it for the organization.

 

What if our gross receipts grow above $50,000 after we are approved?

 

Eligibility turns on your honest projections when you apply. Good faith growth after approval does not by itself undo your exemption, but your annual filing changes from Form 990-N to Form 990-EZ or Form 990. Knowingly understating projected receipts to qualify is a different matter.

 

Are donations made before the IRS approves us deductible?

 

If you file within 27 months after the end of the month you were formed and the IRS approves, your exemption is retroactive to your formation date, so contributions received since formation are generally deductible. If you file later, the exemption starts on your filing date.

 

What is an NTEE code?

 

The National Taxonomy of Exempt Entities code is a three-character code that summarizes your organization’s purpose, such as B90 for educational services or D20 for animal protection and welfare. The full list is at the end of the IRS instructions.

 

What happens if we answered a worksheet question incorrectly?

 

If you were not actually eligible, the IRS can revoke the exemption or treat the determination as unreliable, and you may have to start over with Form 1023. Get help before you file if any answer is unclear.

 

Does a 501(c)(3) letter exempt us from Arizona sales tax?

 

Not automatically. Arizona transaction privilege tax and property tax exemptions have their own requirements separate from federal income tax exemption.

 

How We Help Arizona Nonprofits

 

Arizona nonprofit attorneys Richard Keyt and his son, attorney and former CPA Richard C. Keyt, have formed 550+ Arizona nonprofit corporations that became 501(c)(3) tax-exempt organizations. We draft articles of incorporation with the purpose, prohibited-activity and dissolution provisions the IRS requires, so your Form 1023-EZ or Form 1023 attestations are true when you sign them.

 

Our flat fee to form an Arizona nonprofit corporation is $1,297, which includes 28 nonprofit formation services. Our flat fee to prepare IRS Form 1023 is $3,500. Call us to discuss whether your organization should file Form 1023-EZ or Form 1023.

 

To hire us to form your nonprofit corporation submit our nonprofit incorporation questionnaire, or book a free office, phone or Zoom video consultation. You can also call 480-664-7478 or email rk@keytlaw.com. Call Richard Keyt (Rick, the father) at 480-664-7478 & rk@keytlaw.com or his son former CPA Richard C. Keyt (Ricky, the son) at 480-664-7472 & rck@keytlaw.com.

 

This article provides general information about IRS Form 1023-EZ based on the January 2025 IRS instructions and is not legal or tax advice for your situation. IRS forms, fees and procedures change. © 2026 Richard Keyt. All rights reserved.