As January 3rd inches its way here, many newbies to the Non-Profit world are asking, “What gives?!” for this soon to be imposed fee hike, especially with the economy leaving many charities floundering.
The 501c3 fee hike is nothing new; every two years the IRS must assess the difficulty of the application review process as well as the time it takes to approve them. They then adjust the fees accordingly to the costs of goods and services, which also includes other cost accounting data. The IRS uses the following calculation:
User Fee = (Average Hours per Case) X (Average Cost per Staff Hour).
Then we have to take into account not only the costs of goods and services but also inflation, increased wages and many other overhead costs, down to the increased postage.
The new Tax Exempt status filing starting January 3rd is $850.
We can also expect the IRS to unleash even more fee hikes during 2010 because all user fees must be reviewed and adjusted every two years, not just tax exempt statuses.
Take advantage of the week you have left and file your tax exempt status with Vcorp Services today!
Tags: 501c3, Accounting, business services, fee changes, irs, non-profit, non-profit companies, tax exempt status, Vcorp, vcorp services