IRS Form 1023
For years, there had been one way to apply for 501c3 tax exemption, and that was by filing IRS Form 1023.
Filing the original Form 1023 is the most time consuming part of the nonprofit formation process. Including the instructions, IRS Form 1023 is over 60 pages long. The IRS estimates this will take you approximately 100 hours to complete.
If you're looking for information on IRS Form 1023-EZ, please visit here.
Where Can I Download Form 1023?
You can download the interactive Form 1023 here. Be sure to download and read the Instructions to Form 1023 as well.
What Is the Fee to File Form 1023?
The fee is $600 regardless of revenue. Make checks payable to the United States Treasury.
What Do I Need to Prepare?
IRS Form 1023 contains a very specific checklist of items to include in your submission to the IRS. Before you file, you will need to have incorporated, drafted bylaws, made financial projections, and obtained a federal EIN.
The packet you mail to the IRS will contain:
- Form 1023 Checklist
- Application (Form 1023 and Schedules A through H, as required)
- Organizing document (e.g. Articles of Incorporation)
- Amendments to organizing document in chronological order
- Bylaws or other rules of operation and amendments
- All other attachments, including explanations, financial data, and printed materials or publications. Label each page with name and EIN.
Depending on your activities and filing needs, you may need to include additional documents as outlined on the checklist.
How Do I File Form 1023?
When you're ready to submit your filing, mail the entire packet to:
Internal Revenue Service
P.O. Box 192
Covington, KY 41012-0192
How Long Will It Take?
It can take months for the IRS to process this application. Visit the IRS website for an accurate estimate. If the IRS requires additional information from you, or your application requires additional review, that time will only increase. Make sure your submission is accurate and complete.
Once your application is approved, the IRS will send confirmation of your organization's exemption recognition via a Determination Letter.
3 Things You Should Know About IRS Form 1023:
- It's long. The IRS estimates the whole process will take you over a hundredhours. That's four hours an evening for a month.
- Your fee is based on your average annual revenue. Make sure you provide accurate financial statements, or if you don't have any yet, accurate projections.
- There's a newer form, Form 1023-EZ. Make sure you understand the difference, and file the correct one!
