Charity & Nonprofit Audit / Type III orgs

This web page will explain the IRS audit process for charities and other nonprofit organizations. IRS Exempt Organizations is continuously exploring how to improve our service to charities and other nonprofit organizations, and hopes you will find the information on this page useful.

Recent changes affecting Type III Supporting Organizations

On February 4, 2012, the Director of Exempt Organizations, Ruling and Agreements, issued a memorandum instructing EO Determinations specialists to cease issuing determinations based on the 2009 proposed regulations.
Effective immediately, EO Determinations may issue determination letters classifying organizations as either functionally integrated or non-functionally integrated Type III supporting organizations if they satisfy the criteria set forth in the final and temporary regulations.

Search Charities Online: Select Check

Learn how to search for charities and other nonprofits using the IRS online tool called Select Check in this new YouTube video.
Watch this and other videos on the IRS YouTube Channel.

IRS Updated User Fees

Exemption application (Form 1023, 1024, or 1028)	User Fee
Organizations with annual gross receipts < $10,000 during preceding 4 years	$400
Organizations with annual gross receipts ≥ $10,000 during preceding 4 years	$850
Group exemption requests	$3,000

For More Information...

Videos on New 990 - Application Fee Increase

990 Video Series IRS Exempt Organizations has launched a new case study and video program to help exempt organizations and their tax preparers better understand the newly revised Form 990 series which must be filed for the 2008 tax year. The case study includes a set of facts describing organizational and financial aspects of a hypothetical exempt organization, and a completed Form 990 based on those facts. A video series walks you through key reporting issues common to most organizations required to file Form 990.
User fees will increase for all applications for exemption (Forms 1023, 1024, and 1028) postmarked after January 3, 2010:

• $400 for organizations whose gross receipts are $10,000 or less annually over a 4-year period
• $850 for organizations whose gross receipts exceed $10,000 annually over a 4-year period
• $3,000 for group exemption letters.

A complete schedule of all user fees will be published in the annual procedure released in January 2010.
Cyber Assistant, a Web-based software program designed to help 501(c)(3) applicants prepare a complete and accurate Form 1023 application, will become available during 2010. Once the IRS announces the availability of Cyber Assistant, the user fees will change again:

• $200 for organizations using Cyber Assistant (regardless of size) to prepare their Form 1023
• $850 for all other organizations not using Cyber Assistant (regardless of size) to prepare their Form 1023.

IRS will announce when Cyber Assistant is available and the effective date of the user fee change. Subscribe to the EO Update to automatically receive an alert that Cyber Assistant is available.