INSTRUCTIONS : APPLICATION FOR RECOGNITION OF EXEMPTION (Form 1023)
Form 1023 is a United States Internal Revenue Service tax form used for charities, non-profits, and religious groups to seek recognition for tax exempt status.
The Form 1023 can be obtained through the I.R.S’ website or by obtaining the documents through a local tax office.
In order to apply for tax exempt status, you must fully complete the Form 1023 and submit it to the IRS.
1. Fill out part I, providing the identification information for the applying group, in lines 1 through 12.
2. Provide the organizational structure of your group in part II. Answer yes or no for each question on lines 1 through 5.
3. Part III provides a checklist for what is required in your organizing document in order to meet tax exempt status. Ensure that each question is address on your organizing form before continuing with the Form 1023.
4. For part IV, you are required to attach a summary of your organization’s activities. Informational attachments, such as financial statements, brochures, or fliers may also help you complete your summary in part IV.
5. You must supply the compensation structure of all officers, executives, employees, and independent contractors of your organization in part V. You must also further expand on employee relationships in lines 2 through 9, answering yes or no to each question.
6. For parts VII and VIII, answer all of the yes or no questions.
7. You are required to fill out a the financial statement in part IX.
8. You must establish your public charity status in part X, certifying that all your answers are accurate.
9. You will then need to sign and date part XI, attaching the required fee for the application.
10. Additional schedules may need to be attached depending on your organization’s status.
11. Attach schedule A, answering all questions, if you are applying for tax exempt status for a church or religious organization.
12. If you are applying as an educational organization, you must attach schedule B.
13. A hospital or medical facility seeking tax exempt status must fill out and attach schedule C.
14. if your organization has significant supporting organizations for financial support, you must supply their names and information in schedule D.
15. Elderly homes must file a schedule E with their Form 1023.
16. A scholarship organization must submit a schedule G.
17. Once the Form 1023 is complete with all necessary schedules attached, it is ready for submission to the IRS.