IRS Attempts To Simplify The Application Process For Certain 501(C)(3) Organizations, But Is "EZ" Better?

On July 1, 2014, the Internal Revenue Service ("IRS") released Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code ("Code").

Form 1023-EZ is an abbreviated version of the twelve page Form 1023 (which can be supplemented by as many as seven schedules) and is intended to streamline the application for recognition of exemption under Code §501(c)(3) for certain organizations.  Such organizations are those with gross receipts of $50,000 or less and assets of $250,000 or less and are otherwise eligible to file the Form by being a public charity described in Code §§170(b)(1)(A)(vi) or 509(a)(2), a private foundation, or an organization seeking reinstatement of exempt status pursuant to section 4 or 7 of Revenue Procedure 2014-11 following automatic revocation of such status for failure to file required annual returns or notices for three consecutive years.