The U.S. Internal Revenue Service charges a user fee for the processing of applications for recognition of tax-exempt status (including 501(c)(3), 501(c)(4) among others). Effective July 1, 2006, these fees, along with many other user fees, will increase as follows:

• For organizations whose annual gross receipts have not averaged over $10,000 in the preceding 4 years, or for those who anticipate annual gross receipts averaging less than $10,000 for the next 4 years, the user fee will increase from $150 to $300.
• For organizations whose actual or anticipated annual gross receipts exceed the $10,000 average annually, the user fee will increase from $500 to $750.
• Other user fees, including those for group exemption letters, will also increase.

For more detailed information regarding the fee increases, see http://www.irs.gov/pub/irs-tege/eo_user_fee_appendix.pdf . Members who have questions can contact the Center.