Form 1023-EZ is the IRS's streamlined online application for recognition as a 501(c)(3) tax-exempt organization. You can use it only if you answer no to every question on the eligibility worksheet, including projected gross receipts of $50,000 or less in each of the next 3 years and total assets of $250,000 or less, as of October 2026. It's filed and paid for only through Pay.gov.
For a small new charity it's a fraction of the work of the full Form 1023. But the worksheet is strict, and a wrong answer can mean a revoked exemption later. Everything below comes from the IRS's Form 1023-EZ instructions and About Form 1023-EZ page, checked in October 2026.
The eligibility worksheet
You must complete the worksheet before the form. Any yes answer means you file the full Form 1023 instead. The ones that rule most people out:
| Worksheet question | Answer must be |
|---|---|
| Do you project annual gross receipts above $50,000 in any of the next 3 years (this year and the next 2)? | No |
| Have your annual gross receipts exceeded $50,000 in any of the past 3 years? | No |
| Do you have total assets with a fair market value above $250,000? | No |
| Were you formed under the laws of a foreign country, or is your mailing address abroad? | No |
| Are you organized as something other than a corporation, unincorporated association or trust (for example, an LLC)? | No |
| Are you formed as, or a successor to, a for-profit entity? | No |
Two details to watch. Gross receipts are everything you received from all sources, before costs, so a charity with a big fundraising event can cross the line even if it spends it all. And total assets include cash, receivables, investments, land, buildings and equipment, not just the bank balance. You don't submit the worksheet, but you attest that you completed it.
How to file
- Get an employer identification number for the organization first.
- Read the instructions and complete the eligibility worksheet at the end of them.
- Register for an account on Pay.gov and enter "1023-EZ" in the search box.
- Complete the form online, including your organizing document details, purpose and dissolution clause confirmations.
- Pay the user fee through Pay.gov when you file. Pay.gov fills in the current fee, which is set in the IRS's annual user fee revenue procedure (Rev. Proc. 2026-5 for this year).
The 27-month rule
Timing decides the date your exemption starts. If you file within 27 months after the end of the month you were legally formed, and the IRS approves, your exemption runs from the date of formation. File later and it starts from the date you submitted Form 1023-EZ.
The catch: if you've existed for more than 27 months and want an earlier effective date than your submission date, you can no longer get it on the EZ form. You have to complete the full Form 1023 instead. So a group that's been running informally for years and wants donations backdated has a real reason to file the long form.
Organizing documents the IRS checks
- Your articles of incorporation, association or trust must limit your purposes to 501(c)(3) purposes.
- They must have a dissolution clause sending remaining assets to another exempt purpose, or rely on state law in a state that provides for it.
- Your activities can't include political campaign intervention, and only limited lobbying.
After approval: the annual filing that causes revocations
Getting exemption is the start, not the end. An eligible organization other than a private foundation that normally has gross receipts of $50,000 or less doesn't file a full annual return, but it must submit the electronic Form 990-N (e-Postcard). Missing a required return or notice for 3 consecutive years automatically revokes your exempt status.
If an annual return is due while your application is still pending, you file it anyway and check "Application pending". Larger organizations move up to the full Form 990, and the EIN you'll need from day one comes from Form SS-4.
Common Form 1023-EZ mistakes
- Filing as an LLC. The worksheet says to answer yes to the entity question if you're organized as an LLC, which rules out the EZ form.
- Counting only net income against the $50,000 test, when gross receipts mean everything received before costs.
- Valuing assets at cost or leaving out buildings and equipment. The worksheet uses fair market value of all assets.
- Waiting more than 27 months and then expecting exemption from the formation date on the EZ form.
Two smaller points from the instructions. Any officers, directors and trustees must be listed with their names, titles and mailing addresses. And while the application is pending, you still file any required annual return or notice, checking the Application pending box, and if a 990-N is due you may need to call the IRS on 877-829-5500 so an account can be set up.
The verdict
If you're small, new and organized as a corporation, association or trust, the 1023-EZ is the sensible route: answer the worksheet honestly, file within 27 months of forming, and pay on Pay.gov. If you're an LLC, expect to pass $50,000 in receipts within 3 years, or need an exemption date further back, go straight to the full Form 1023 rather than risk it.
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Frequently asked questions
Who can file Form 1023-EZ?
Organizations that answer no to every question on the eligibility worksheet, including gross receipts of $50,000 or less in past and projected years and total assets of $250,000 or less.
How do I file Form 1023-EZ?
Register on Pay.gov, search for 1023-EZ, complete the form online and pay the user fee there.
Can an LLC use Form 1023-EZ?
No. The worksheet asks whether you're organized as an entity other than a corporation, unincorporated association or trust, and says to answer yes if you're an LLC.
What is the 27-month rule for Form 1023-EZ?
If you file within 27 months after the end of the month you were formed and you're approved, your exemption is effective from your formation date.
What annual return does a small 501(c)(3) file?
An eligible organization other than a private foundation with gross receipts normally of $50,000 or less submits Form 990-N, the e-Postcard.
Do I send the eligibility worksheet with Form 1023-EZ?
No. You complete it before filing but you don't submit it. You confirm on the form that you completed it.
What if my organization is formed under a foreign country's laws?
It can't use Form 1023-EZ. The worksheet asks whether you were formed under the laws of a foreign country, and U.S. territories don't count as foreign.
