How Do You Apply For Tax-Exempt Status?
Tax-exempt organizations do not have to pay income taxes. Section 501(c) of the tax code details the approximately 20 types of organizations that may be approved for tax exemption. Here’s how to know if your organization qualifies and how to apply to the IRS. Determine whether your company qualifies for tax exemption under the 501(a) or 501(c)(3) rules. Included under 501 (c)(3) are religious organizations, charities, scientific organizations, groups that test for public safety, groups that promote literary or educational purposes, or groups that advocate against cruelty to children or animals. Organizations that can be exempt under 501(a) include universities with special government-approved programs. You must have an Employer Identification Number (EIN), even if your organization has only has one employee. The IRS form number is SS-4 (see Resources below). Fill out the appropriate form based on your 501(a) or 501(c)(3) status. 501(a) status requires IRS Form 1024. 503(c)(3) status re
