Tax Analysts provides news, analysis, and commentary on tax-related topics, including the latest developments on exemption applications. If an organization wants to file a tax exempt application to achieve status as a charitable organization, it must file IRS Form 1023, “Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code.” Form 1023 asks applicants to describe their activities, their compensation and other financial arrangements, and their revenues and expenses. It also asks whether an organization has a conflicts of interest policy, whether it is politically active and whether it tries to influence legislation, whether it is or plans to be part of a joint venture, whether it will operate in foreign countries, and other questions. The application also has schedules with additional questions for particular types of organizations, such as churches, colleges and universities, and hospitals.
Smaller organizations may be eligible to file Form 1023-EZ, “Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code.” Form 1023-EZ asks about an applicant’s organization structure and activities but is much shorter and simpler than the standard form.
Organizations seeking tax-exempt status in categories other than section 501(c)(3) file Form 1024, “Application for Recognition of Exemption Under Section 501(a).” The form has a checklist on which applicants can indicate which section 501(c) classification they are seeking, and there are extensive questions about an organization’s activities and operations.
The “Where’s My Exemption Application?” page on irs.gov/eo explains how an applicant can contact the IRS to check the status of the applicant’s application.
Tax Analysts covers news, IRS guidance, and commentary related to exemption applications.