As we discussed in our prior blog entry, the IRS is going to introduce an online Form 1023 exemption application process called the “cyber-assistant.”  Although the IRS originally projected that the cyber-assistant would be available in 2010, the IRS announced in July that it would not meet this deadline.  Instead, the cyber-assistant is expected to be available some time in 2011.  A major advantage of the cyber-assistant will be a significant reduction in the application fee from $850 (the current fee for the paper Form 1023) to $200.  As 2010 winds down, newly formed charities may want to delay filing the Form 1023 application until the cyber-assistant is available.  Of course, a delay in filing will delay the IRS review of the Form 1023 and delay the potential receipt of a favorable determination letter.  In addition, charities that do choose to wait must be diligent to file the Form 1023 (either the paper Form or cyber-assistant) no later than 27 months after organization to ensure retroactive exemption.