Form 1023 EZ Makes Applying for Nonprofit Status in Northern Virginia Easier than Ever

non-profit accountant northern virginiaBetween required audits, detailed financial disclosures, and demonstration that your nonprofit organization undertakes activities to support its purpose, your nonprofit organization should employ the services of a knowledgeable nonprofit accountant in Northern Virginia for consultation on your frequent interaction with the Internal Revenue Service (IRS). One of the most important aspects of nonprofit accounting in Northern Virginia is affirming your 501c(3) status with the IRS. Until this July, if you wanted to apply for 501c(3) nonprofit status in northern Virginia with the IRS, you had to fill out the lengthy IRS Form 1023. Form 1023 required that applicants provide a plethora of information in order to verify that they were a legitimate nonprofit organization in Northern Virginia, but in July the IRS released form 1023 EZ which simplifies the process for incorporating a nonprofit in Northern Virginia. Although form 1023 EZ requires fewer disclosures than the original IRS Form 1023, you should still consult with a non-profit accountant in Northern Virginia before registering your nonprofit organization.

Who Can Use IRS Form 1023 EZ?

IRS Form 1023 EZ applies to organizations wishing to file for 501c(3) tax exempt status. Many nonprofit organizations in Vienna, Virginia are registered with 501c(3) tax exempt status, but you should contact a nonprofit accountant in Vienna, VA before submitting any official documents to the IRS.

501c(3) tax exempt status applies to organizations which:

  • Are commonly referred to as “charitable organizations”
  • Are not organized or operated for the benefit of a private interest or interests
  • Do not engage in political campaigning activities
  • Do not engage in political activity against or in support of candidates for elected office
  • Do not transfer earnings from the organization to any private individual

The IRS furthermore stipulates limits on the extent to which 501c(3) status organizations can engage in legislative lobbying activities, and while some political activities are prohibited, 501c(3) organizations are allowed to register voters and educate voters, so long as their advocacy is explicitly nonpartisan. If you want to file for nonprofit status with the IRS in Northern Virginia, but you are unsure of which IRS status your organization complies with, contact an experienced nonprofit accountant in Tysons, Vienna, Fairfax, or wherever is most convenient for you.

What are the Differences between IRS Form 1023 and IRS Form 1023 EZ?

IRS form 1023 EZ simplifies the process of registering as a 501c(3) in Northern Virginia. Because nearly 70% of organizations applying for 501c(3) status are considered small nonprofits, most organizations can now register for 501c(3) status through IRS Form 1023 EZ.  Your organization may be eligible to file 1023 EZ if it meets the following criteria:

Financial Stipulations

  • Your organization has not collected annual gross receipts larger than $50,000 in the past three years, and does not intend to collect annual gross receipts exceeding $50,000 in the next three years.
  • Your organization possess less than $250,000 in assets.

Legal Status Stipulations

  • Your organization was formed within the Untied States, and your mailing address is within the United States.
  • Your organization has no affiliation with any former nonprofit groups suspended under section 501(p)–suspension of tax exempt status for a terrorist organization.
  • Your organization is not a Limited Liability Company (LLC).
  • Your organization is not a successor to a for-profit entity.
  • Your organization is not a successor to a previously existing 501c(3) organization whose status was revoked.
  • Your organization is not a church or a religious association of churches.
  • Your organization is not a school, college, or university.
  • Your organization is not a hospital or research organization.

Even if your organization does not technically qualify for the 1023 EZ, you can still file for 501c(3) status in Northern Virginia using IRS Form 1023. To determine whether your organization qualifies, contact an exceptional nonprofit accountant in Northern Virginia.