How does an organization become tax-exempt?
To be exempt from federal income tax, an organization must be described in one of the sections of the Internal Revenue Code providing for exemption. See Types of Tax-Exempt Organizations or download Publication 557, Tax-Exempt Status for Your Organization for more information. Most organizations seeking recognition of exemption from federal income tax must use application forms specifically prescribed by the Service. Two forms currently prescribed by the Service are Package 1023, Application for Recognition of Exemption, (for charitable organizations) and Package 1024, Application for Recognition of Exemption, (for other tax-exempt organizations). A few types of organizations are not required to submit specific application forms. The application your organization is required to submit is specified in Publication 557.
To be exempt from federal income tax, an organization must be described in one of the sections of the Internal Revenue Code providing for exemption. Most organizations seeking recognition of exemption from federal income tax must use application forms specifically prescribed by the Service. Two forms currently prescribed by the Service are Package 1023, Application for Recognition of Exemption, (for charitable organizations) and Package 1024, Application for Recognition of Exemption, (for other tax-exempt organizations). A few types of organizations are not required to submit specific application forms.
An organization becomes tax-exempt by applying for recognition of exemption from the Internal Revenue Service (IRS). The IRS will recognize an organization as tax-exempt if it meets the requirements of the Internal Revenue Code. See Types of Tax-Exempt Organizations and Publication 557 , Tax-Exempt Status for Your Organization, for more information. Organizations applying for tax-exempt status must submit two applications: First, one requesting an Employer Identification Number (EIN); and second, the other applying for recognition of exemption.
To be recognized as exempt from federal income taxation, most organizations are required to apply for recognition of exemption. For section 501(c)(3) organizations, the law provides only limited exceptions to this requirement. Applying for recognition of exemption results in formal IRS recognition of an organization’s status, and may be preferable for that reason.
To be recognized as exempt from federal income taxation, most organizations are required to apply for recognition of exemption. For section 501(c)(3) organizations, the law provides only limited exceptions to this requirement. Applying for recognition of exemption results in formal IRS recognition of an organization’s status, and may be preferable for that reason. The IRS will recognize an organization as tax-exempt if it meets the requirements of the Internal Revenue Code. See Types of Tax-Exempt Organizations and Publication 557 , Tax-Exempt Status for Your Organization, for more information. Organizations applying for tax-exempt status must submit two applications: First, if they have not previously received an Employer Number (EIN), they must apply for one, and second, an application for recognition of exemption. The IRS sometimes recognizes a group of organizations as tax-exempt if they are affiliated with a central organization. This avoids the need for each of the organizations
