1023 Form

What is 1023 form?

The 1023 form, also known as the Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, is a crucial document for organizations seeking tax-exempt status in the United States. By completing this form, nonprofit organizations can apply for recognition of exemption from federal income tax.

What are the types of 1023 form?

There are two main types of 1023 forms: Form 1023 and Form 1023-EZ. 1. Form 1023: This is the standard and more comprehensive form, applicable to most organizations seeking tax-exempt status. It requires in-depth information about the organization's activities, finances, governance, and more. 2. Form 1023-EZ: This is a simplified version of the form, designed for smaller organizations with less than $50,000 in annual gross receipts and total assets. It requires less documentation and has a shorter processing time.

Form 1023
Form 1023-EZ

How to complete 1023 form

Completing the 1023 form correctly is essential to ensure a smooth application process for tax-exempt status. Here is a step-by-step guide to help you fill out the form accurately:

01
Gather all the necessary information and supporting documents about your organization, including its purpose, activities, finances, and governance.
02
Carefully read the instructions provided with the form to understand the requirements and guidelines.
03
Fill out the form electronically or using blue or black ink. Ensure all the information is legible and accurate.
04
Attach any additional documentation or schedules as required by the form.
05
Review the completed form thoroughly to check for any errors or omissions.
06
Sign and date the form, certifying that the information provided is true and complete.
07
Make a copy of the completed form and all supporting documents for your records.
08
Submit the form and required fee to the appropriate address, as mentioned in the instructions.
09
Keep track of your application's progress and respond promptly to any requests for additional information from the IRS.

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Questions & answers

Form 1023-EZ is used to apply for recognition as a tax-exempt organization under Section 501(c)(3). Applicants can learn more about the requirements, benefits, limitations and expectations of tax-exempt organizations by accessing the online courses at the IRS Small to Mid-Size Tax Exempt Organization Workshop.
The user fee for Form 1023 is $600. The user fee for Form 1023-EZ is $275. The user fees must be paid through Pay.gov when the application is filed.
How long does it take to prepare Form 1023? Depending on how many additional schedules apply to the organization, you should plan to spend between 20-50 hours preparing the form and compiling all the necessary documents that need to be attached to the application.
Note: As of January 31, 2020, Form 1023 applications for recognition of exemption must be submitted electronically online at www.pay.gov. As of January 5, 2021, Form 1024-A applications for recognition of exemption must also be submitted electronically online at www.pay.gov.