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Not For Profit/Exempt Organizations Blog

User Fee Increase for Exemption Applications

Posted in Formation, IRS Filings

The IRS has reported that user fees will increase for all applications for exemption (Forms 1023, 1024, and 1028) postmarked after January 3, 2010:

  • $400 for organizations whose gross receipts are $10,000 or less annually over a 4-year period (Currently $300)
  • $850 for organizations whose gross receipts exceed $10,000 annually over a 4-year period (Currently $750)
  • $3,000 for group exemption letters (Currently $900).

What’s More…

Cyber Assistant, a web-based software program designed to help 501(c)(3) applicants prepare a complete and accurate Form 1023 application, will become available during 2010.  Once the IRS announces the availability of Cyber Assistant,  the user fees will change again:

  • $200 for organizations using Cyber Assistant (regardless of size) to prepare their Form 1023
  • $850 for all other organizations not using Cyber Assistant (regardless of size) to prepare their Form 1023.

We will let you know as soon as Cyber Assistant is available.

  • Resurrection Center of Louisiana

    Is the Cyber Assistant available yer?

  • Proskauer Not-for-Profit/Exempt Organizations Blog

    Thank you for your comment.
    The Cyber Assistant is not yet available. As soon as it becomes available, we will let you know.

  • Here’s the latest on the Cyber Assistant:
    The National Taxpayer Advocate’s 12/31/2011 Report to Congress is critical of IRS delays in releasing the Cyber Assistant and recommends that Congress require the IRS to move forward on making it available. (You can view this report at http://www.irs.gov/advocate/article/0,,id=252216,00.htmlis.)
    In response, the IRS said, “Software testing revealed problems requiring correction prior to public launch, and the IRS had to delay the release. Because the IRS must balance a number of competing information technology needs, we cannot presently predict when Cyber Assistant will be available.”
    So it looks as if the Cyber Assistant is on the back burner for now.