Form 1023 Electronic Filing Requirements Now in Effect
Starting January 1, 2020, the IRS required all Forms 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, to be submitted to the IRS via the website Pay.gov. The IRS will no longer accept hard copies of Form 1023 and will return the application, which will delay the approval of the application request.
The new electronic filing requirements pose some obstacles for filing that should be considered before starting the online application to avoid errors, delays, and an incomplete application. Below are steps to help you complete the online form.
- Determine if the articles of incorporation or trust document includes specific language required to file a public charity or private foundation, i.e., exempt purpose and dissolution clause.
- Confirm EIN has been obtained.
- Determine if the organization can file a Form 1023-EZ or is required to file a complete Form 1023 (based on assets and income).
- Determine state’s registration requirements.
- Determine correct NTEE Activity code (see page 37 of Form 1023 instructions).
- Compile the following forms as a single PDF:
- Organization document, amendments, and bylaws.
- Form 2848, Power of Attorney and Declaration, or Form 8821, Tax Information Authorization.
- Signature page (the signature should be a PDF attachment; see additional information below).
- Any supplemental responses or financial information requested on return should be organized and saved as one PDF file to attach to electronic file.
- Expedited handling request (optional).
- Establish an online account at Pay.gov and create a password.
- Input data exactly how information is to be presented by the IRS.
- Initiate payment (must make payment at the time of filing). The officer/trustee must have either a credit card or ACH information to make the payment at the time of filing.
- Save copy of PDF upon submission.
Use the “Save” button often. Use Pay.gov’s Save/Back buttons and not your browser’s navigation tools.
- The user fee for Form 1023 is $600.
- The user fee for Form 1023-EZ is $275.
The user fees must be paid through Pay.gov when the application is filed.
Notice: If you need to obtain the current status regarding your application, please contact the IRS
Please wait 30 days after payment to contact the IRS about the status of this application.
Updated Information on Signing Electronically Submitted Form 1023
Applicants may satisfy the electronic signature requirement for an electronically submitted
Form 1023 by including, in the PDF file they upload as part of their application, a copy of the
handwritten signature of the officer, director, trustee, or other authorized official whose name is
typed into Part X of the Form 1023 on Pay.gov.
To sign in this way, the signer should sign above their typewritten name on a copy of Part X of
the completed application or on a separate sheet of paper that includes the same information as in
Part X (name of signer, title or authority of signer, date, and penalties of perjury statement as set
out in Part X).
The signature must match the name of the individual in Part X exactly, including any abbreviated names, middle initials, titles used, etc.
For more information, reach out to your BKD Trusted Advisor™ or submit the Contact Us form below.