Form 1023 Paperwork, In Millions of Hours, 1986 to 2016
Source: U.S. Office of Management and Budget. Click image to learn more.
Real Help With Your 501(c)(3) Application
Q. What happens if an ineligible organization files form 1023-EZ?
This website has only a fraction of the information you can find in
A. A Form 1023-EZ filed by an organization that does not meet the eligibility criteria will be "rejected." Unlike an adverse determination, a Form 1023-EZ rejection does not result in any appeal rights for the applicant. Generally, rejected 1023-EZ applicants must file the long form 1023.
Over 75% of rejections during the first two years Form 1023-EZ has been in use were based on applicants’ responses revealing that they had, or expected, gross receipts in excess of $50,000. The other ineligible applicants rejected included churches, limited liability companies, credit counseling organizations, schools, and for-profit successors. Form 1023-EZ (2 year) Update Report
A rejection for ineligibility to file Form 1023-EZ does not indicate the applicant does not qualify for tax exemption (see earlier discussion of rejected applicants that reapply and are approved).