Effective July 1, 2016, the Internal Revenue Service  lowered the application fee for organizations with annual gross receipts of $50,000 or less or assets of $250,000 or less to apply for 501(c)(3) tax exempt status.  The application fee is being lowered from $400 to $275.

Organizations who meet income and asset requirements may use Form 1023EZ, to apply for 501(c)(3) tax exempt status.

The $275 fee may be submitted through www.pay.gov.

The IRS introduced Form 1023EZ in 2014 to streamline the process for small organizations to apply for tax-exempt status under Section 501(c)3 of the Tax Code.