IRS Cuts Application Fee for Form 1023-EZ Filers

The IRS has slashed the application fee small charitable organizations are required to pay when applying for tax-exempt status.

According to Revenue Procedure 2016-32, the IRS reduced the user fee from $400 to $275 for Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code.

The new fee went into effect on July 1.

Charities must pay the fee through www.pay.gov when the application is filed. Payment can be made directly from their bank account or by credit or debit card.

Form 1023-EZ is available to small charities with an annual income of $50,000 or less and assets under $250,000.