Cyber Assistant Delayed

On May 7, 2010, the IRS announced that the release of the Cyber Assistant will be delayed.  This on-line tool will not become available until after calendar year 2010.

Revocations for Faillure to File

On May 15, 2010, the IRS will begin revoking the tax exempt status of organizations that have failed to file a required return for three consecutive years.  More than 300,000 non-profits are likely to lose their exempt status that day.  These groups will be required to file a new application and pay a User Fee to get their status back.

User Fees Increase

The User Fees that must be paid with an exemption application increased for applications mailed after January 3, 2010.  Organizations whose gross receipts average less than $10,000 per year must pay $400.  Others pay $850.  When the Cyber Assistant becomes available later in 2010 (see below), applicants who use it will be eligible for a reduced User Fee of $200, while everyone else, including small organizations, will pay $850.

Cyber Assistant

The IRS hopes to unveil its Cyber Assistant some time during 2010.  This tool will guide applicants through the Form 1023, providing continuation sheets for lengthy responses, cover sheets for attachments, and relevant taxpayer education.  When a Cyber Assistant-aided application is finished, it must be printed out and submitted to the IRS in the usual way; special bar-coding on the printed form will alert the IRS that the applicant is eligible for the reduced User Fee of $200.  For help on deciding whether to wait for the Cyber Assistant, click on "Cyber 1023" above.

Address Change

There has been a slight change in the address where exemption applications should be sent.  Send all Forms 1023, 1024, 8734 and 8718 to:

        Internal Revenue Service
        E.O. Application Receiving
        P. O. Box 12192
        Covington, Kentucky  41012-0192

Elimination of Advance Rulings

On September 9, 2008, the IRS issued new regulations eliminating the "Advance Ruling" for new publicly supporte 501(c)(3) organizations.  A public charity relying on either one of the one-third public support tests no longer needs to complete a tax year that is at least eight months long before receiving a final determination that it is publicly supported.

If a new organization can show that it can reasonably expect to meet a public support test, the IRS will recognize it as a public charity for all purposes for its first five years, regardless of the level of public support it in fact receives.

Although the IRS has not changed Form 1023, information on the elimination of Advance Rulings has been incorporated into Prepare Your Own.

Next Form 1023

The IRS has discontinued its Tax Product Posting Schedule.  At one time, the next revision of Form 1023 was scheduled for October, 2010.