Most organizations seeking Code §501(c)(3) tax-exempt status must file a 25+ page Form 1023 application. In a major change to this time-consuming procedure, the IRS will soon be issuing a short form three page Form 1023-EZ for smaller applicants to use.
The short form can be used by organizations that do not expect to have annual gross receipts of more than $200,000 in the next 3 years or in the prior 2 years, and do not have total assets in excess of $500,000. Some organizations that meet this criteria will still not be allowed to use the form, including foreign organizations, limited liability companies, successors to for-profit entities, churches, schools seeking public charity status, and hospital and medical research organizations seeking public charity status.
The apparent idea is to relieve smaller organizations from submitting an application that is based mostly on future projections anyway.Rather than using IRS resources to examine these applications, the IRS will instead employ a robust compliance process later, either through compliance checks or full examinations.
The IRS draft of April 23, 2014 of the Form 1023-EZ can be viewed here.