27 February 2017

Exempt organization data from approved Forms 1023-EZ now available on IRS website

On February 22, 2017, the IRS announced (IR-2017-41) that it has made publicly available on its website for the first time information from approved tax-exemption applications that were filed using Form 1023-EZ, Streamlined Application for Recognition of Exemption.

The Form 1023-EZ data is currently available for applications approved from the introduction of the form in mid-2014 through the end of 2016 — during which time the IRS approved more than 105,000 Form 1023-EZ applications. The data is presented in a separate spreadsheet for each year. Going forward, the IRS plans to update the information quarterly, starting with the first quarter of 2017.

The publicly available information from Forms 1023-EZ includes basic identifying information and Employer Identification Numbers; the names of officers, directors and trustees; and information on organizing documents, state of incorporation, and exempt purposes and activities.

Before the information became available online, obtaining Form 1023-EZ data for an organization required completing and submitting to the IRS a request on Form 4506-A, Request for Public Inspection or Copy of Exempt or Political Organization IRS Form.

Implications

The increased ease of access to application data is part of a continuing effort by the IRS "to provide information about the tax-exempt community."

In June 2016, the IRS announced that it was making publicly available data on electronically filed Forms 990 in machine-readable format through Amazon Web Services (AWS). The data includes Form 990, Form 990-EZ and Form 990-PF and related schedules, with the exception of certain donor information, from 2011 to the present.

"The new online availability of Form 1023-EZ data is an important step forward and will allow taxpayers to more easily research information on tax-exempt organizations," said IRS Commissioner John Koskinen. "The IRS is committed to ongoing improvements in taxpayer service across the agency and we continue to look for innovative ways like this to provide taxpayers the information they need, when they need it."

In general, exempt organizations must make available for public inspection certain annual returns and applications for exemption, and must furnish copies of such returns and applications to individuals who request them. Copies usually must be provided immediately in the case of in-person requests, and within 30 days in the case of written requests. The tax-exempt organization may charge a reasonable copying fee plus actual postage, if any. The IRS must also make this same information publicly available. It may take the IRS up to 60 days to process such a request.

The information made available on the IRS website appears in a downloadable Microsoft Excel spreadsheet. The IRS does not offer the organization's actual approved application, supporting documentation or determination letter online. The inspection of those documents by the public still requires the submission of Form 4506-A. Public inspection is allowed only after the IRS has issued a ruling or determination letter recognizing an organization's exemption (see Treas. Reg. 301.6104(a)-1(d)).

Organizations should ensure that their exemption applications do not include unnecessary personal identifying information (such as bank account numbers or social security numbers) that could result in identity theft or other adverse consequences if publicly disclosed, and that no exceptions to disclosure apply.

Please contact your Ernst & Young LLP tax professional with any questions.

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RELATED RESOURCES

— For more information about EY's Exempt Organization Tax Services group, visit us at www.ey.com/ExemptOrg

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Contact Information
For additional information concerning this Alert, please contact:
 
Tax-Exempt Organizations Group
Mike Vecchioni(313) 628-7455
Mike Payne(602) 322-3620
John Rigney(314) 290-1106

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Other Contacts
Exempt Organizations Tax Services Markets and Region Leadership
Scott Donaldson, Americas Director – Phoenix(602) 322-3062
Mark Rountree, Americas Markets Leader – Dallas(214) 969-8607
Bob Lammey, Americas Higher Education Markets Leader – Boston (617) 375-1433
Lucille White, Central Region – Chicago(312) 879-2670
Bob Vuillemot, Northeast Region – Pittsburgh(412) 644-5313
Debra Heiskala, West Region – San Diego(858) 535-7355
Joyce Hellums, Southwest Region – Austin(512) 473-3413
Kathy Pitts, Southeast Region – Birmingham(205) 254-1608

Document ID: 2017-0389