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IRS Lowers Filing Fees for New 501(c)(3) Applicants

IRS Lowers Filing Fees For New 501(c)(3) Applicants

Good news from the IRS usually sounds like the beginning of a funny joke…but not this time.  In an unexpected move, the IRS announced in late January a revised filing fee schedule for applicants for 501(c) status.  Most applicants will see their filing fee go down, though some at the lower end of the scale could see an increase.  Here’s the breakdown:

Form 1023…$600 for all filers (was $400 for budgets under $10k/yr; $850 for budgets over $10k/yr)

Form 1023-EZ…remains at $275 (was already lowered from $400 in July 2016)

Requests for group exemption status…$2,000 (was $3,000)

For more complete details, see the IRS Revenue Bulletin 2018-5 and scroll down to Appendix A.

Greg McRay, EA

Greg McRay is the founder and CEO of The Foundation Group. He is registered with the IRS as an Enrolled Agent and specializes in 501(c)(3) and other tax exemption issues.

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4 Comments on "IRS Lowers Filing Fees for New 501(c)(3) Applicants"

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Shawna
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Hello Greg and Justin, This question is related to previous blog posts focused on distinguishing employee/contractor/volunteer. We started a nonprofit a few months ago that provides nature-based mentoring programs (we intend to apply for 501c3 status within the next year and appreciate finding you as a resource!) First year revenues are expected to be $10-$15k, with net profit essentially zero, so we are running pretty lean. One of the moms involved in our program has agreed to serve as a program mentor and to help us with social media. We are considering two options. 1) work-trade with no money changing… Read more »
Justin Williamson
Admin

Hi Shawna, thanks for posting this question! We would recommend your organization to go for option #2. Letting certain children participate in a service for free in exchange for service could raise questions from the IRS. If you haven’t already, I would recommend reaching out to our Nonprofit Advisors to go over your plans for this 501(c)(3) nonprofit. Our Nonprofit Formation services can help you navigate the application process and give you insights for long-term success! Feel free to call into our office at 615-361-9445 or complete an inquiry on our Nonprofit Formation page: https://www.501c3.org/501c3-services/start-a-501c3-nonprofit/

Joyce Harris
Guest
Hello Greg, This question is from an old blog about private vs. public charities. I want to start a Peer Run organization, I do want it to be a family run organization. Most of the start-up costs are from our own personal resources. We do want to be able to solicit funds from the public. My siblings would be on the Board of Directors, I would be a paid employee essentially managing the day to day operations, training and offering peer services. I also would like to establish offices in more than one state, as we would be seeking contracts… Read more »
Justin Williamson
Admin

With that many complications and potential conflicts-of-interest, you definitely need assistance with setting up something like that. We recommend you talk with one of our sales advisors about our SureStart formation program. If you place an inquiry on our website, one of our Nonprofit Advisors will be sure to follow up with you!

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