Good News for PTOs: IRS Cuts 501(c)(3) Application Fee
It’s now a whole lot cheaper for PTOs to apply for 501(c)(3) status from the IRS!
As of July 2016, PTOs and other charitable groups will be charged $275, down from $400, when they apply for nonprofit status using Form 1023-EZ from the IRS.
The IRS simplified the application process in 2014 by releasing a new, shorter Form 1023-EZ. Previously, groups would apply by completing Form 1023, which was fairly complex and more than 25 pages. At that time, it also reduced the filing fee to $400 for groups with gross annual receipts of less than $50,000. Prior to that change, groups that brought in receipts of more than $10,000 per year were charged $850.
Along with the fee change in 2016, groups are now required to submit their fee at www.pay.gov.
For more information, review the IRS instructions on how to complete Form 1023-EZ or check out the PTO Startup Toolkit for line-by-line instructions.
For more general information about 501(c)(3) status, read 501(c)(3) for PTOs and Taxes, PTOs, and the IRS.
Originally posted in 2016 and updated regularly.
