Cyber Assistant Delay to 2012

As we pointed out in our Oct. 19, 2010 entry, it might have been worthwhile to delay filing a new Form 1023 until the IRS launched its “Cyber Assistant” online version which enabled online filing at a substantreduced fee. However, buried in Internal Revenue Bulletin 2011-1 is the following statement:

“… the Service does not expect Cyber Assistant (a Web-based software program designed to assist organizations in preparing their application for recognition of exemption under § 501(c)(3) of the Internal Revenue Code (Form 1023)) to become available in 2011.”

Therefore, if you were waiting to file a Form 1023 until this service was available, you might consider proceeding with the paper version, even at the higher fee. Generally, an organization has 27 months from the date of formation to file the Form 1023, and if the tax exempt status is approved by the IRS, the organization will be deemed to be tax-exempt since the formation date (and donations to the organization since the formation date will generally be deductible to the donors).

Written by in: General


  • We are just finished with legalzoom.com and have papers prepared! However, we got the 30 page 1023 form and would like to use Cyber Assistant could you tell me when it will be available?

    Thank you!

    • Keith Kehrer says:

      Lawrence, it is still not clear when the IRS will release the Cyber Assistant. I asked the question to an IRS Exempt Organizations Agent a few weeks ago at an IRS sponsored seminar. I was told informally that it is not likely the IRS will release the Cyber Assistant by the end of 2012. We will continue to monitor the Cyber Assistant and post its release as soon as it is available.

      Thanks, Keith

  • Sandy Deja says:

    Here’s the latest on the Cyber Assistant:

    The National Taxpayer Advocate’s 2011 Report to Congress is critical of IRS delays in releasing the Cyber Assistant and recommends that Congress require the IRS to move forward on making it available. (You can view this report at http://www.irs.gov/advocate/article/0,,id=252216,00.htmlis.)

    In response, the IRS said, “Software testing revealed problems requiring correction prior to public launch, and the IRS had to delay the release. Because the IRS must balance a number of competing information technology needs, we cannot presently predict when Cyber Assistant will be available.”

    So it looks as if the Cyber Assistant is on the back burner for now.

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