Jill Warren Lucas
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The IRS launched a beta form Interactive Form 1023 this afternoon on its StayExempt website (www.stayexempt.irs.gov). Through Sept. 20, the IRS is actively seeking user feedback and comments before launching a final Interactive Form 1023 for use by the public.
The Interactive Form 1023 is the result of recommendations of the June 2012 report of the Advisory Committee of Tax Exempt and Government Entities.
With the goal of making the process of completing this form less burdensome, this online version of the 1023 application will provide the user with electronic links to relevant forms and explanatory information. For example, if a filer is uncertain about specific information being requested, or does not have a required supplementary form, the Interactive Form 1023 aims to provide it. IRS officials believe this interactive form will result in more accurate applications, which may shorten the approval process.
Organizations needing to file the Form 1023 will not be able to do so using this website and will still need to use the standard paper form.
In late August the IRS also updated two related courses “Applying for 501 (c)(3) Status” and “Maintaining Tax-Exempt Status,” which also are located on its StayExempt website.
The IRS is hopeful that members of the nonprofit sector will rigorously test this beta version of the Interactive Form 1023 so that any bugs can be worked out before the final version goes live later this fall. When deployed in its final version, the Interactive Form 1023 will still require an applicant to download and print a paper copy for submission. The Interactive Form 1023 may lead to creation of a fully online electronic application process.