The IRS announced that it is raising the fees for organizations applying for tax-exempt status. The new application fees for Forms 1023, 1024, 1028 and for group exemption letters will take effect for all applications postmarked after January 3, 2010.

The following are frequently asked questions and answers about the new fees.

1. Why is the IRS increasing application fees now, especially since many charities are struggling financially because of the economy?
2. What factors does the IRS consider when determining the fees?
3. How does the IRS account for a fee increase to $850?
4. I understand the IRS is releasing a new software program, Cyber Assistant, designed to help prepare an application for tax exemption. What is Cyber Assistant?
5. I read that when Cyber Assistant is introduced, the application fees will change again and that organizations using Cyber Assistant to prepare applications will pay a significantly lower fee. Is that true?
6. Why is the fee structure different?
7. When will Cyber Assistant be available?
8. How will I know when Cyber Assistant is available?
9. Can I use Cyber Assistant to complete my Form 1024?
10. Should an organization wait for Cyber Assistant to take advantage of its lower application fee?
11. Will other EO-related fees increase?

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