Tax Agency Raises Fee for Charity Applications

The IRS says it will raise the fee it charges organizations to apply for tax-exempt status as charities, beginning with applications that are postmarked after January 3, 2010.

For organizations with annual gross receipts that average more than $10,000 in the four years before they file their application, the fee increases from $750 to $850.

For groups with annual gross receipts that average $10,000 or less in the four years before applying, the fee goes from $300 to $400.

But the IRS said that it will lower some fees next year after it makes available a Web-based software program, known as Cyber Assistant, that is designed to help organizations “prepare a complete and accurate” application for charity status, which is called the Form 1023.

Organizations that use Cyber Assistant to prepare their applications will be charged $200, regardless of their size.

Organizations that do not use Cyber Assistant will be required to pay $850, regardless of their size.

To read the IRS’s announcement, go to: http://www.irs.gov/charities/article/0,, id=212562,00.html.