Application for Recognition of Exemption by IRS

The IRS reminds people seeking tax-exempt status to use the current version of forms to avoid processing delays. The current version of Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, is dated December 2017, and Form 1024, Application for Recognition of Exemption Under Section 501(a), is dated January 2018.

If you use a prior version of one of these forms, the IRS will return your application and ask you to resubmit using the current version of the form.

User fees

Revenue Procedure 2018-5 announces the following user fees:

Application Type User Fee
Form 1023 $600
Form 1024
Form 1024-A
Form 1023-EZ $275
Group exemption letter $2,000

Please submit Form 8718, User Fee for Exempt Organization Determination Letter Request, with group exemption letter requests and exemption applications, other than those filed on Forms 1023 and 1023-EZ.

The IRS announces user fees annually in updates to Rev. Proc. 2018-5 and posts them to IRS.gov.

Form 1023 revisions 

The IRS revised Form 1023 and its instructions. Highlights include:

  • Added a new public charity status for agricultural research organizations (Section 170(B)(1)(a)(ix))
  • Eliminated a question about the advance ruling process
  • Eliminated an outdated question about organizations applying for 501(c)(3) recognition more than 27 months after formation
  • Increased financial data reporting requirements for organizations older than one year

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