Q. Will grantors and contributors be able to rely

on a 501(c)(3) letter issued to a 1020-EZ applicant?​

A. Early on, some grantors and contributors questioned whether a determination letter issued to a Form 1023-EZ applicant could be relied on in the same way as a letter issued to a long-form applicant.  

The IRS has clarified this, saying: "While the procedures for obtaining a determination letter by submitting Form 1023-EZ differ from those for obtaining a determination letter by submitting Form 1023, grantors and contributors may rely on a determination letter issued [to a 1023-EZ applicant] to the same extent as a determination letter issued [to a long-form 1023 applicant]."