IRS planned to lower fees from $850 to $200

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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/charities/article/0,,id=121515,00.html

Belinda Whitfield

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.

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5 Comments
  • Reply Belinda Whitfield

    July 10, 2010, 6:30 am

    We held off on pushing through several 501c3 applications this year. Hoping to save our clients big bucks on 501c3 application fees using the IRS’s planned online system. Scrap that! Back to preparing paper applications.

  • Reply Kurt Reece-Peeplez

    January 2, 2011, 3:15 pm

    We’re in the process of applying for a 501c3. What guidlines are there if another orginazation has a project and wants to use the benefits of our 501cs status? Will we have to do it solely in our name or can we partner with them on the project or program.

    • Reply Belinda Whitfield

      January 3, 2011, 4:54 pm

      Hello Kurt,
      Your organization is ultimately accountable for what goes on; and if your organization is required to file 990 returns this activity must be reported on the 990.
      You’ll definitely want to put controls in place to monitor the activities and finances.

      Make sure the other organization’s planned activities are consistent with your purpose.
      You’ll have a problem if your organization is a church and the other organization wants to use your 501c3 to start a hospital.
      Both are 501c3’s with significantly different purposes.

      You can register an assumed name or DBA (Doing Business As) name for the other project for marketing purposes.
      Example: Your Organization registers to do business under XYZ Outreach Services.

      Assumed names are usually registered through the Secretary of State or County Recorder’s office.

      Belinda

  • Reply Veronica

    September 20, 2011, 9:10 pm

    Hello Belinda,

    I apologize, I believed I call you shirley..

    Veronica

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