Yes. The IRS can reject a Form 1023-EZ if the organization is not eligible to use it. Applicants should complete the eligibility worksheet before filing because paying the lower fee does not create eligibility.

After an exemption application is submitted, the IRS may approve it as filed or request more information; processing time varies by application type and complexity, and the IRS's own processing-time page is the current source to check rather than a fixed number of days. Save the submitted application, Pay.gov confirmation, governing documents, and every IRS notice in one file, and monitor the mailing address so requests aren't missed. Annual filing and state obligations continue during the review, so waiting for a determination letter doesn't pause other compliance deadlines.

Keep formation, IRS, banking, and fundraising requirements separate because approval by one authority does not automatically satisfy another.

How Beacon Nonprofit can help: Beacon can help prepare the filing using the eligibility information supplied by the organization and can keep the application materials organized. The IRS determines Form 1023-EZ eligibility and may reject or question a filing; Beacon cannot override that decision or guarantee acceptance of the streamlined form. Beacon's role is administrative formation and filing support: government agencies control approval, processing times, and legal or tax determinations, and specialized operational matters may require a qualified professional outside Beacon's service scope. Depending on the selected package, the Beacon records available to the organization can include the approved state formation documents and, with BeaconComplete, EIN assistance, corporate bylaws, registered agent service, and the 501(c)(3) application materials prepared through the service.