beware the ez way out
irs mulls new 1023-ez rules for 501(c)(3)’s.
by rick telberg
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it’s safe to say that cpa firms tend to love irs form 1023-ez, the simplified form for application for 501(c)(3) tax exempt status. introduced in 2014, the form was ez on the nascent, smallish not-for-profit and on the cpa trying to help them get started.

special report – fixing the irs: irs #fails at online services spell problems for professionals | tax accountants fill the breach of a failing irs | beware the ez way out | can the irs improve its phone service? | when clients face ‘unreal’ irs audits | irs warns about private debt collectors for tax season 2018 | underfunded irs swamped with problems | irs in retreat from communities | military personnel face new battles at home: the irs | as new economy surges, irs falls further behind | is the irs winning the battle against identity theft? | irs mulls raising fees to cover budget shortfalls |
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this easier version of form 1023 was a good and necessary idea. the irs was way backed up on approvals of the original application. approval was taking an average of 315 days. to the delight of do-gooders, wanna-be do-gooders, and outright frauds, virtually all 1023-ezs are approved in short order. approvals were and still are passed down in just a couple of weeks.
trouble is, a lot of those expedited approvals were for organizations that didn’t qualify for 501(c)(3) status.


how does your firm define itself?
irs adopts confusing, misleading terminology. but it’s all very real.
setting expectations.