How does one file for a Recognition of Tax Exempt Status? How does one file for a Recognition of Tax Exempt Status?
The IRS has some very specific rules that organizations must follow in order to receive the designation of "Tax Exempt Status". To apply for recognition by the IRS of exempt status under section 501(c)(3) of the Code, Organizations are required to:
1)Complete IRS Tax Form 1023, Application for Recognition of Exemption" .
2)The Organization must pay the "appropriate user fee".
For further details of the application process please refer to "IRS publication 557, Tax Exempt Status for your Organization". Is there a mandatory EIN Requirement for a Tax Exempt Organization?
The IRS states that "the organization (tax-exempt) should also request an employer identification number, even if it does not have any employees". What is the notification period to the IRS to apply for recognition of exemption?
The IRS states that "organizations that are required to apply for recognition of exemption must notify the Service within 27 months from the date of their formation to be treated as described in section 501(c)(3) from the date formed".
When an organization qualifies for exemption under section 501(c)(3), the IRS will classify the organization as a private foundation, unless it meets the requirements to be treated as a public charity. |