IRS planned to lower fees from $850 to $200

April 13, 2021 | by Belinda Whitfield, Certfied Public Accountant | 501C3 START-UP TIPS

IRS planned to lower fees from $850 to $200 for 501c3 application fees this year. Plans delayed till who knows when. They are not saying.

Still you may be scratching your head and wondering when did the fees jump to $850? User fees increased for all 1023 returns filed after January 4, 2010.

Organizations with annual gross receipts under $10,000 during preceding 4 years will pay a $400 user fee. Organizations with annual gross receipts greater than or equal to $10,000 during preceding 4 years will pay a user fee of $850.

Note that the IRS did not update page 12 of Form 1023. Instructions for the increase in the 501c3 application fee were noted on their website and as an instruction cover page to the downloadable form 1023 pdf file.

Learn more at: http://www.irs.gov

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Written by Belinda Whitfield, Certfied Public Accountant

Belinda Whitfield is a certified public accountant that specializes in serving churches and non-profit organizations. Through her firm, Whitfield & Associates, she provides tax services, accounting and compliance oversight and strategic planning for churches and non-profits throughout the United States.