Note
The information requested on the revised Form 1023 has substantially increased, thereby minimizing the need for additional
information
from the filer during the approval process. Specific changes to the form include the following:
•Form 8718, User Fee for Exempt Organization Determination Letter Request, has been incorporated into Part X of Form 1023.
Therefore,
when filing the new Form 1023 you will not need to file Form 8718 to determine the correct user fee.
•The automatic 27-month retroactive exemption rule pursuant to Rev. Proc. 92-85, 1992-2 C.B. 490 has been incorporated into
the
application.
•You can no longer submit Form SS-4, Application for Employer Identification Number, with the application. You must have an
Employer
Identification Number (EIN) prior to filing Form 1023.
• Limited liability companies have been added as a type of organization eligible to apply for tax-exempt status under section
501(c)(3)
of the Code.
•Questions about compensation and other financial arrangements with officers, directors, trustees, highly compensated employees,
and
highly compensated independent contractors aimed at determining whether benefits are appropriate have been added to Part V.
• Form 872-C, Consent Fixing Period of Limitation Upon Assessment of Tax Under Section 4940 of the Internal Revenue Code,
has been
obsoleted and the required information has been incorporated into Part X. Therefore, when filing the new Form 1023, you will not need to
submit Form 872-C.
•A new Schedule E. Organizations Not Filing Form 1023 Within 27 Months of Formation was created to consolidate
questions and financial data in one place that relates to whether an exemption can be made retroactive to the organization's
date of formation.
•Schedule H incorporates advance ruling procedures for private foundations requesting advance approval of individual grant
procedures.
Caution. Organizations that have begun completing the prior revision (Rev. September 1998) may file it until April 30, 2005.
Beginning May 1, 2005, only the Form 1023 (Rev. October 2004) will be accepted.
Item to note. Section 317 of the American Jobs Creation Act of 2004, provides that a farmer's cooperative is eligible for
declaratory judgment relief with respect to the initial classification or continuing classification as an organization exempt
under section 521(a) of
the Code.
This publication discusses the rules and procedures for organizations that seek recognition of exemption from federal income
tax under section
501(a) of the Internal Revenue Code (the Code). It explains the procedures you must follow to obtain an appropriate ruling
or determination letter
recognizing your organization's exemption, as well as certain other information that applies generally to all exempt organizations.
To qualify for
exemption under the Code, your organization must be organized for one or more of the purposes specifically designated in the
Code. Organizations that
are exempt under section 501(a) of the Code include those organizations described in section 501(c). Section 501(c) organizations
are covered in this
publication.
Chapter 1 provides general information about the procedures for obtaining recognition of tax-exempt status.
Chapter 2 contains information about annual filing requirements and other matters that may affect your organization's tax-exempt
status.
Chapter 3 contains detailed information on various matters affecting section 501(c)(3) organizations, including a section
on the determination of
private foundation status.
Chapter 4 includes separate sections for specific types of organizations described in section 501(c).
Organizations not discussed in this publication.
Certain organizations that may qualify for exemption are not discussed in this publication, although they are included
in the
Organization
Reference Chart . These organizations (and the Code sections that apply to them) are as follows.
Section 501(c)(24) organizations (section 4049 ERISA trusts) are neither discussed in the text nor listed in the
Organization Reference
Chart.
Likewise, farmers' cooperative associations that qualify for exemption under section 521, qualified state tuition
programs described in section
529, and pension, profit-sharing, and stock bonus plans described in section 401(a) are not discussed in this publication.
If you think your
organization falls within one of these categories, contact the Internal Revenue Service (IRS) for any additional information
you need. For telephone
assistance, call
1-877-829-5500.
Check the
Table of Contents at the beginning of this publication to determine whether your organization is described in this
publication. If it is, read the chapter (or section) that applies to your type of organization for the specific information
you must give when
applying for recognition of exemption.
Organization Reference Chart.
This chart enables you to locate at a glance the section of the Code under which your organization might qualify for
exemption. It also shows the
required application form and, if your organization meets the exemption requirements, the annual return to be filed (if any),
and whether or not a
contribution to your organization will be deductible by a donor. It also describes each type of qualifying organization and
the general nature of its
activities.
You may use this chart to determine the Code section that you think applies to your organization. Any correspondence
with the IRS (in requesting
forms or otherwise) will be expedited if you indicate in your correspondence the appropriate Code section.
Comments and suggestions.
We welcome your comments about this publication and your suggestions for future editions.
You can write to us at the following address:
Internal Revenue Service
TEGE and Specialty Forms and
Publications Branch
SE:W:CAR:MP:T:T:SP
1111 Constitution Ave. NW, IR-6406
Washington, DC 20224
We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number,
including the area code, in
your correspondence.
You can email us at
*[email protected]. (The asterisk must be included in the
address.) Please put “
Publications Comment” on the subject line. Although we cannot respond individually to each email, we do appreciate your
feedback and will consider your comments as we revise our tax products.
