Form 1023 is the IRS application for 501(c)(3) status; the user fee is $600, or $275 for Form 1023-EZ, and both are filed on Pay.gov.
Form 1023 and Form 1023-EZ501(c)(3) application help for New Jersey nonprofits
A nonprofit applies for 501(c)(3) tax-exempt status by filing Form 1023, or the streamlined Form 1023-EZ if it qualifies, on Pay.gov. Wasserman Accounting CPAs runs the eligibility worksheet, prepares the application and narrative, answers the IRS, and completes the New Jersey filings that follow the determination letter.
Form 1023 in three points
Form 1023-EZ is open only to organizations with gross receipts of $50,000 or less in each of the past three years and the next three, total assets of $250,000 or less, and no disqualifying answer on the eligibility worksheet, which excludes LLCs, churches, schools and hospitals.
Wasserman Accounting CPAs chooses the form, prepares the application, and completes the New Jersey sales tax exemption and charities registration once the IRS approves.
A CPA or EA runs the Form 1023-EZ eligibility worksheet with you before you pay either fee. Call 609-281-8096 or send the contact form.
Check which form I can fileWhat is Form 1023?
Form 1023 is the application a nonprofit files with the IRS to be recognized as tax-exempt under section 501(c)(3).
Once the IRS approves it, the organization pays no federal income tax on its mission-related income, and donors can deduct their contributions. The IRS sets out the whole route in its applying for tax-exempt status guidance.
Who can file Form 1023-EZ?
Form 1023-EZ is open to an organization that answers “no” to each question on the IRS eligibility worksheet. The worksheet asks three financial questions and lists excluded organizations.
The three financial tests
- Gross receipts of $50,000 or less in each of the past three years
- Projected gross receipts of $50,000 or less in this year and the next two
- Total assets with a fair market value of $250,000 or less
Excluded from the EZ whatever their size
- LLCs, whatever their federal tax classification
- Churches, schools, hospitals and medical research organizations
- Organizations formed under foreign law or with a foreign mailing address
- Former for-profit entities and their successors
- Organizations exempt now or previously under another section 501(a) subsection
- Private operating foundations
- Organizations whose exemption was revoked for a reason other than failing to file
An organization that fails any test files the full Form 1023. We run the worksheet with you before you file, because withdrawing an EZ to file the full form forfeits the $275.
What do you need before you file Form 1023?
Have these ready before you open the form on Pay.gov.
- EIN
- An Employer Identification Number, even with no staff
- Articles
- Signed articles of incorporation or a trust agreement with a charitable, religious, educational or similar purpose clause, and a dissolution clause directing assets to another exempt purpose
- Bylaws
- Bylaws describing how directors are chosen and how meetings run
- Narrative
- A narrative of each program: what you do, who benefits, how often, and how it advances the exempt purpose
- Financial data
- A three-year budget for a new organization, or actual revenue and expenses for an existing one
Form 1023 also asks whether you have a conflict-of-interest policy. The IRS does not require one to grant exemption, and the examiner expects an answer. The narrative is the section we draft from your programs, not from a template.
Articles or bylaws missing a required clause?
If the purpose or dissolution clause is not there, a CPA or EA amends them and drafts the narrative before you file. Call 609-281-8096.
Form 1023 vs. Form 1023-EZ: what is the difference?
| Feature | Form 1023 (standard) | Form 1023-EZ (streamlined) |
|---|---|---|
| Who it serves | Organizations that fail any worksheet test | Small organizations that pass the eligibility worksheet |
| Gross receipts | Over $50,000 in any of the past three years, or projected in any of the next three | $50,000 or less in each of the past three years and the next three |
| Total assets | Over $250,000 | $250,000 or less |
| User fee | $600 | $275 |
| Filing style | Detailed narrative, financial data and schedules with attachments | Short online form with eligibility attestations |
| Submission | Pay.gov | Pay.gov |
What is the Form 1023 filing fee in 2026?
The IRS user fee is $600 for Form 1023 and $275 for Form 1023-EZ, set by Rev. Proc. 2026-5 and paid on Pay.gov when you file. The IRS refunds the fee only if it does not accept the application for processing or declines to rule; a denial, or withdrawing one form to file the other, forfeits it. Our preparation fee is separate and quoted before we start.
How long does the IRS take to approve Form 1023?
- 191days
- 80% of Form 1023 determinations
- 22days
- 80% of Form 1023-EZ determinations
- 120days
- 80% of EZ determinations needing further review
When the IRS last updated its queue on June 28, 2026, it was reviewing Form 1023 applications submitted on or before January 12, 2026, and EZ applications submitted before February 24, 2026. It posts the current position on Where’s my application for tax-exempt status. If it needs more information, it contacts you or your representative by phone or mail.
Can you ask the IRS to expedite Form 1023?
You can ask the IRS to expedite a full Form 1023 on three grounds. Form 1023-EZ cannot be expedited.
A pending grant
A grant whose loss would threaten the organization's ability to keep operating.
Disaster relief
A newly created organization formed to provide relief to victims of an emergency.
IRS delay
An IRS error that has held up the determination letter.
The request is made in writing after filing, and approval moves the application up the queue without deciding it. We prepare the request and document the grant risk.
What happens after the IRS approves your 501(c)(3) application?
The IRS sends a determination letter recognizing the organization under section 501(c)(3). If you filed within 27 months after the end of the month you were formed, the exemption dates from your formation; file later and it dates from the filing date, and only the full Form 1023 can request the earlier date.
- 01
The organization files a Form 990-series return or the 990-N notice each year; churches and their integrated auxiliaries are exempt from the requirement.
- 02
The IRS automatically revokes exemption after three consecutive missed returns or notices.
- 03
A revoked organization applies again on Form 1023-EZ, or on the full Form 1023 if it wants the exemption restored back to the revocation date.
What does a New Jersey nonprofit file after its 501(c)(3) letter?
The IRS letter does not exempt you from New Jersey sales tax or register you to raise funds.
| Filing | When it applies | Form |
|---|---|---|
| ST-5 sales tax exemption | Any New Jersey nonprofit that buys goods or services in the state. Our NJ sales tax exemptions page covers what the ST-5 does and does not cover. | Form REG-1E, no filing fee |
| Charities registration | More than $10,000 in gross contributions a year, or any use of a professional fundraiser. Renewal falls within six months of each fiscal year end. | Form CRI-200 at $25,000 or less, Form CRI-150I above that |
| Corporation Business Tax letter | Nonprofit corporations are exempt by statute. Request the letter where a bank or grantor asks for it. | On request from the Division of Taxation |
We file the REG-1E and the charities registration once the IRS issues the determination letter, and request the Corporation Business Tax letter where it is asked for. The Division of Taxation sets out what it expects of nonprofit organizations, and if your registration crosses an audit threshold our audit services page covers what the state requires.
How Wasserman Accounting CPAs helps with Form 1023
Our 501(c)(3) application services:
- Running the eligibility worksheet, choosing the form, and filing Form 1023 or 1023-EZ on Pay.gov
- Drafting the narrative of activities and the three-year financial data
- Reviewing and amending articles and bylaws for the purpose and dissolution clauses
- Responding to IRS requests for information and preparing expedited-handling requests
- Filing the New Jersey REG-1E and charities registration after approval
- Reapplying after automatic revocation
Nonprofits usually need the books kept alongside the exemption, so we also handle bookkeeping and financial reporting. Everything we offer is on the full services list.
How we price Form 1023 preparation
We quote before we start, and the fee depends on:
- 01Whether you file Form 1023-EZ or the full Form 1023 with schedules
- 02Whether your articles and bylaws need amending
- 03How many programs the narrative has to cover
- 04Whether the New Jersey filings are included
- 05Whether you are reapplying after a revocation
Call 609-281-8096 with your articles and a list of your programs and we quote on the call.
Who we help
- Founders deciding between Form 1023 and Form 1023-EZ
- New Jersey nonprofits that have a determination letter and no ST-5
- Boards whose articles or bylaws are missing the required clauses
- Organizations revoked for missed 990 filings
- Grant-funded organizations that need a faster determination
Reviewed by
April Moore, EA, Hainesport, NJ. Enrolled Agent with 20 years in business tax preparation and quarterly regulatory filings.
Talk to a New Jersey nonprofit CPA or EA
If you are choosing a form, have a filed application waiting on the IRS, or hold a determination letter and have not filed with New Jersey, we review the application’s status and file the next step.
Already have the determination letter and need the ST-5? Read the NJ sales tax exemptions page.