User fees increase for exempt organization exemption applications

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
  • $850 for organizations whose gross receipts exceed $10,000 annually over a 4-year period
  • $3,000 for group exemption letters.

Revenue Procedure 2010-8, 2010-1 I.R.B. 234

(updated annually) provides guidance for complying with the user fee program of the Internal Revenue Service as it pertains to requests for letter rulings, determination letters, etc. on matters under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division; and requests for administrative scrutiny determinations under Revenue Procedure 93-41, 1993-2 C.B. 536.

In general, user fees apply to all requests for letter rulings, opinion letters, determination letters and advisory letters submitted by or on behalf of taxpayers or other entities. The fee may be refunded only in limited circumstances.

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.

IRS will announce when Cyber Assistant is available and the effective date of the user fee change. Subscribe to the EO Update to automatically receive an alert that Cyber Assistant is available.

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