Entities will now be able to electronically apply for tax-exempt status with the Internal Revenue Service with a newly revised form 1023. The new e-filed form, however, is aimed at charities applying under section of the Tax Code, 501(c)3. The IRS anticipates that filing electronically will reduce errors, and will help provide a smoother application process for those seeking tax exemption. And that the change will reduce the application processing time.
Commencing January 31, 2020, applications for recognition of exemption on Form 1023 will need to be submitted electronically online at www.pay.gov. The IRS will provide a 90-day grace period during which it will continue to accept paper versions of Form 1023 (Rev. 12-2017). The required user fee for Form 1023 will remain $600 this year. Applicants can pay the fee through www.pay.gov when submitting the form. Payment can be made directly from a bank account or by credit or debit card.