IRS Streamlined Application for Recognition of Exemption (Form 1023-EZ)


The Internal Revenue Service has lowered the user fee for charities applying for tax-exempt status.

On July 1, the IRS decreased the user fee for processing Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, from $400 to $275.

In May, the IRS released Revenue Procedure 2016-32 about its plan to reduce the user fee for filing Form 1023-EZ. They then introduced the form in 2014 to streamline the process for small organizations to apply for tax-exempt status under Section 501(c)3 of the Tax Code. The IRS wanted to reduce a months-long backlog of applications from approximately 60,000 organizations that ask for tax-exempt status each year (see Easy or Too EZ: New Rules for Tax Exemptions). Organizations with annual gross receipts of $50,000 or less and assets of $250,000 or less can use the three-page form.

Charities need to submit the fee through when filing a 1023-EZ application. They can pay the fee directly from a bank account or via credit or debit card.

The IRS also released regulations recently on how groups should register as tax-exempt organizations under Section 501(c)4 of the Tax Code (see IRS Issues Rules for Registering 501(c)4 Organizations).

Nevada Business Owners (Mandatory Nevada Commerce Tax Filing Requirement)

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Every business registered in the state of Nevada, except 501c nonprofit organizations, are subject to the Nevada Commerce Tax and must file the Commerce Tax Return by August 15th 2016, regardless of whether you have a tax liability or not.

Information on the new annual tax is available here:

You can also access the Nevada Commerce Tax Return, TXR-030.01, and instructions here:

We suggest you immediately contact your accounting professional for assistance with the associated filing requirement. If you require an extension in filing, please contact the Nevada Department of Taxation at 866-962-3707 or via their web site at

How to Video

Here is a link to a short video below, in case you have trouble viewing here, with instructions on how to file the return. There are additional videos available there to help with filing.


Commerce Tax: Filing the Return

Please note, this is a new requirement passed by the legislature last year is being activated now.

 Only those companies earning 4 million or more gross will have a tax liability, but every entity needs to register.

For further information or any other questions please contact Accumera LLC, via email, at or, via phone, 518-937-9117.