Glossary
Nonprofit Specific

Form 1023-EZ

By: Alec Hollingsworth
Updated:  
June 16, 2025

DEFINITION:

Form 1023-EZ is a simplified IRS application for small nonprofits to obtain 501(c)(3) tax-exempt status quickly and easily.
Form 1023-EZ is a streamlined version of the IRS Form 1023, designed for eligible small nonprofit organizations seeking 501(c)(3) tax-exempt status. This online application simplifies and accelerates the process, requiring less documentation and typically resulting in faster approval times compared to the standard Form 1023. Organizations must meet certain requirements, such as projected annual gross receipts of $50,000 or less and total assets under $250,000, to qualify for this form. The 1023-EZ is intended to reduce administrative burdens, making it easier for smaller nonprofits to achieve tax-exempt status and focus on their missions.

Key Takeaways

  • Streamlines 501(c)(3) tax-exempt applications for small nonprofits
  • Requires less documentation than the standard Form 1023
  • Faster processing and approval times
  • Eligibility is based on income and asset thresholds

Why It Matters

Form 1023-EZ allows small nonprofits to obtain tax-exempt status more quickly and with fewer resources.

Real World Example

A local animal rescue group, newly formed and run by volunteers, wants to become a recognized 501(c)(3) to accept tax-deductible donations. With annual fundraising under $30,000 and minimal assets, they qualify for Form 1023-EZ. Using the online application, they submit basic organizational details and attest to meeting eligibility criteria. Within a few weeks, they receive IRS approval, saving significant time and legal fees. This streamlined process allows them to quickly focus on growing their mission and community impact, rather than being bogged down by paperwork.

How Aplos Helps

Aplos simplifies the process of preparing for Form 1023-EZ by helping nonprofits maintain accurate financial records and generate the reports often needed for the application. With Aplos, organizations can easily demonstrate eligibility and track their finances to stay compliant before and after obtaining 501(c)(3) status.
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Frequently Asked Questions

Who can use Form 1023-EZ?

Only small nonprofit organizations with projected gross receipts of $50,000 or less and assets under $250,000 are eligible to use Form 1023-EZ.

How long does it take to get IRS approval with Form 1023-EZ?

Approval can take as little as a few weeks, much faster than the standard Form 1023, which may take several months.

Is Form 1023-EZ filed online?

Yes, Form 1023-EZ is completed and submitted online through the IRS website, making it accessible and convenient for eligible organizations.

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