The Form 1023-EZ eligibility worksheet These are the IRS worksheet questions for the shorter Form 1023-EZ. Exempta prepares the full Form 1023 either way; the worksheet only shows whether the shorter form is also open to you.
Do you expect your yearly gross receipts to be more than $50,000 in any of the next 3 years (this year and the next 2 years)? IRS form: 1023-EZ worksheet Q1
Gross receipts are the total amounts your organization receives from all sources during its yearly accounting period, without subtracting any costs or expenses. Think about this year and the next 2 years. Exactly $50,000 is not more than $50,000.
Yes No
Were your yearly gross receipts more than $50,000 in any of the past 3 years? IRS form: 1023-EZ worksheet Q2
Gross receipts are the total amounts your organization received from all sources during its yearly accounting period, without subtracting any costs or expenses. Think about each of the past 3 years. Exactly $50,000 is not more than $50,000.
Yes No
Do you have total assets whose fair market value is more than $250,000? IRS form: 1023-EZ worksheet Q3
Total assets include cash, accounts receivable, inventories, bonds and notes receivable, corporate stocks, loans receivable, other investments, depreciable and depletable assets, land, buildings, equipment, and any other assets. Answer Yes only if their total fair market value is more than $250,000.
Yes No
Was your organization formed under the laws of a foreign country? US territories are not foreign countries. IRS form: 1023-EZ worksheet Q4
You are formed under the laws of a foreign country unless you were formed under the laws of the United States, its states, or territories; a federally recognized Indian tribal or Alaskan native government; or the District of Columbia.
Yes No
Is your mailing address in a foreign country? US territories are not foreign countries. IRS form: 1023-EZ worksheet Q5
Your mailing address is the address where all mail to your organization will be sent.
Yes No
Is your organization a successor to, or controlled by, an entity whose exemption is suspended under section 501(p) (suspension of tax-exempt status of terrorist organizations)? IRS form: 1023-EZ worksheet Q6
Section 501(p) suspends the tax exemption of an organization that the U.S. government has designated or identified, under certain federal laws or Executive Orders, as a terrorist organization or as supporting terrorism. The suspension lasts until every such designation is withdrawn.
Yes No
Is your organization organized as something other than a corporation, unincorporated association, or trust? Answer Yes if it is an LLC. IRS form: 1023-EZ worksheet Q7
The worksheet says to answer Yes if you are organized as a limited liability company (LLC) under the laws of the state where you were formed.
Yes No
Was your organization formed as a for-profit entity? IRS form: 1023-EZ worksheet Q8
The IRS wants to know whether your organization was formed as a for-profit entity, meaning a business run to make a profit for its private shareholders or owners.
Yes No
Is your organization a successor to a for-profit entity? IRS form: 1023-EZ worksheet Q9
You are a successor if you took over substantially all of the assets or activities of a for-profit entity, were converted or merged from a for-profit entity, or installed the same officers, directors, or trustees as a for-profit entity that no longer exists. This meaning is different from the successor question later in this application.
Yes No
Was your exemption ever revoked, or are you a successor to an organization whose exemption was revoked, for a reason other than automatic revocation for not filing Form 990-series returns for 3 years in a row? IRS form: 1023-EZ worksheet Q10
Do not answer Yes if the only revocation, yours or your predecessor's, was an automatic revocation for not filing Form 990-series returns for 3 years in a row.
Yes No
Are you now recognized as tax-exempt under another part of section 501(a) (for example 501(c)(4)), or were you ever? IRS form: 1023-EZ worksheet Q11
The IRS wants to know whether your organization is, or ever was, recognized as tax-exempt under a part of section 501(a) other than 501(c)(3).
Yes No
Are you a church or a convention or association of churches described in section 170(b)(1)(A)(i)? IRS form: 1023-EZ worksheet Q12
There is no single tax definition of a church, but churches generally have: a distinct legal existence; a recognized creed and form of worship; a definite and distinct church government; a formal code of doctrine and discipline; a distinct religious history; a membership not associated with any other church or denomination; ordained ministers who serve the congregation and were chosen after completing set courses of study; a literature of its own; established places of worship; regular congregations; regular religious services; Sunday schools for the religious teaching of the young; and schools for training ministers. Not every one of these must be present, but a congregation or other religious membership group that meets regularly for worship is generally required. Churches include mosques, temples, synagogues, and other forms of religious organizations.
Yes No
Are you a school, college, or university described in section 170(b)(1)(A)(ii)? IRS form: 1023-EZ worksheet Q13
An organization is a school if formal instruction is its primary function and it has a regularly scheduled curriculum, a regular faculty of qualified teachers, a regularly enrolled student body, and a place where educational activities are regularly carried on. Schools include primary schools, secondary schools, preparatory schools, high schools, colleges, and universities.
Yes No
Are you a hospital or medical research organization described in section 170(b)(1)(A)(iii), or a hospital organization described in section 501(r)(2)(A)(i) (a facility a state requires to be licensed, registered, or similarly recognized as a hospital)? IRS form: 1023-EZ worksheet Q14
A hospital is an organization whose principal purpose or function is providing medical or hospital care, or medical education or research; convalescent homes and homes for children or the aged are not hospitals. A medical research organization directly and continuously conducts medical research together with a hospital.
Yes No
Are you an agricultural research organization described in section 170(b)(1)(A)(ix)? IRS form: 1023-EZ worksheet Q15
This is an organization that directly and continuously conducts agricultural research together with a land grant college or university or a non-land grant college of agriculture. It must commit to spend each contribution on that research before January 1 of the fifth calendar year after the contribution is made.
Yes No
Are you applying as a cooperative hospital service organization under section 501(e)? IRS form: 1023-EZ worksheet Q16
This is an organization run on a cooperative basis to give its 501(c)(3) hospital members services such as data processing, purchasing, billing and collection, laboratory, or personnel services. It must also meet other requirements in section 501(e).
Yes No
Are you applying as a cooperative service organization of operating educational organizations under section 501(f)? IRS form: 1023-EZ worksheet Q17
This is an organization set up and run only to provide investment services to its members. The members must be organizations described in section 170(b)(1)(A)(ii) or (iv), such as schools, colleges, and universities, that are tax-exempt or whose income is excluded from tax under section 115.
Yes No
Are you applying as a qualified charitable risk pool under section 501(n)? IRS form: 1023-EZ worksheet Q18
A qualified charitable risk pool is organized and run only to pool the insurable risks of its members (not medical malpractice risks) and to give them information about loss control and risk management. All of its members must be tax-exempt 501(c)(3) organizations, and section 501(n) sets other requirements.
Yes No
Are you asking to be classified as a supporting organization under section 509(a)(3)? IRS form: 1023-EZ worksheet Q19
A supporting organization is organized and run to benefit, perform the functions of, or carry out the purposes of one or more specific publicly supported organizations described in section 509(a)(1) or 509(a)(2), and has one of three set relationships with them (Type I, II, or III). It may be funded by a single donor, family, or corporation, but its purposes and activities are limited.
Yes No
Is a substantial purpose of your activities to help individuals through credit counseling, such as budgeting, personal finance, financial literacy, mortgage foreclosure help, or other consumer credit areas? IRS form: 1023-EZ worksheet Q20
These activities teach people about budgeting, personal finance, financial literacy, mortgage foreclosure help, or other consumer credit areas. They may also include helping people combine their debts and asking creditors to lower interest rates and drop late and over-limit fees.
Yes No
Do you (or will you) invest 5% or more of your total assets in securities or funds that are not publicly traded? IRS form: 1023-EZ worksheet Q21
The IRS wants to know whether 5% or more of your total assets are, or will be, invested in securities or funds that are not publicly traded.
Yes No
Do you (or will you) take part in partnerships, including entities or arrangements treated as partnerships for federal tax purposes, where you share losses with partners that are not 501(c)(3) organizations? IRS form: 1023-EZ worksheet Q22
The IRS wants to know whether you share, or plan to share, the losses of a partnership with any partner that is not a 501(c)(3) organization.
Yes No
Do you sell, or plan to sell, carbon credits or carbon offsets? IRS form: 1023-EZ worksheet Q23
The IRS wants to know whether your organization sells, or plans to sell, carbon credits or carbon offsets.
Yes No
Are you a Health Maintenance Organization (HMO)? IRS form: 1023-EZ worksheet Q24
The IRS wants to know whether your organization is a Health Maintenance Organization (HMO).
Yes No
Are you an Accountable Care Organization (ACO), or do you (or will you) take part in ACO activities such as the Medicare Shared Savings Program? IRS form: 1023-EZ worksheet Q25
ACOs are formed by groups of doctors, hospitals, and other health care providers and suppliers to manage and coordinate the care their patients receive. ACO activities include taking part in the Medicare Shared Savings Program (MSSP) and the other activities described in IRS Notice 2011-20.
Yes No
Do you maintain, or plan to maintain, one or more donor advised funds? IRS form: 1023-EZ worksheet Q26
A donor advised fund is generally a fund or account your organization owns and controls, but that is tied to a donor's gifts, and on which the donor (or someone the donor names) expects to give advice about how the money is given out or invested. The worksheet says to answer No if you are a governmental unit described in section 170(c)(1) or a private foundation described in section 509(a).
Yes No
Are you organized and operated only to test for public safety, and asking for classification under section 509(a)(4)? IRS form: 1023-EZ worksheet Q27
These organizations generally test consumer products to find out whether they are acceptable for use by the general public.
Yes No
Are you asking to be classified as a private operating foundation? IRS form: 1023-EZ worksheet Q28
A private operating foundation is a private foundation that directly runs its own charitable, religious, educational, or similar activities, instead of mainly making grants to people or other organizations. It must meet certain IRS tests to be classified this way.
Yes No
Has the IRS ever issued you a ruling or determination letter denying recognition of exemption? IRS form: 1023-EZ worksheet Q31
The IRS wants to know whether it has ever sent your organization a ruling or determination letter that denied recognition of tax-exempt status.
Yes No
Has the IRS ever determined that you are not eligible to file Form 1023-EZ? IRS form: 1023-EZ worksheet Q32
The IRS wants to know whether it has ever decided that your organization may not file Form 1023-EZ.
Yes No
Do you conduct activities involving controlled substances (Schedule I or II of the Controlled Substances Act) that federal law prohibits, even if your state allows them? IRS form: 1023-EZ worksheet Q33
The IRS wants to know whether you carry out activities involving substances listed in Schedule I or II of the Controlled Substances Act that federal law prohibits, even where the law of your state allows them.
Yes No
Do you exchange, create, or distribute digital assets? IRS form: 1023-EZ worksheet Q34
The IRS wants to know whether your organization exchanges, creates, or gives out digital assets.
Yes No