The IRS 1024 form is used by organizations seeking to apply for recognition of exemption under sections other than 501(c)(3) of the Internal Revenue Code. It is a critical step for entities aiming to operate without the obligation of paying federal income tax. For detailed instructions and to begin the application process, click the button below.
Organizations seeking to obtain certain tax-exempt statuses from the Internal Revenue Service (IRS) often find themselves navigating the complexities of the IRS 1024 form. This pivotal document, integral to the application process for recognition of exemption under sections other than 501(c)(3) of the Internal Revenue Code, encompasses a wide array of entities, including social welfare organizations, labor unions, and business leagues. The form's comprehensive structure demands detailed information about the applying entity, ranging from its organizational structure and operational activities to financial data and compliance with specific eligibility criteria. Although the filing process can appear daunting due to its meticulous nature, completion of the IRS 1024 form is a critical step for organizations aiming to secure the tax benefits accompanying their desired tax-exempt status, thereby facilitating their mission-driven activities without the onus of federal income tax liabilities. By providing a clear pathway to exemption, the form not only underscores the IRS's regulatory framework but also plays a key role in fostering the growth and sustainability of a diverse sector of nonprofit entities.
The form you are looking for begins on the next page of this file. Before viewing it, please see the important update information below.
New Mailing Address
The mailing address for certain forms have change since the forms were last published. The new mailing address are shown below.
Mailing Address for Forms 1023, 1024, 1024-A, 1028, 5300, 5307, 5310, 5310-A, 5316, 8717, 8718, 8940:
Internal Revenue Service
TE/GE Stop 31A Team 105
P.O. Box 12192
Covington, KY 41012–0192
Deliveries by private delivery service (PDS) should be made to:
7940 Kentucky Drive
Florence, KY 41042
This update supplements these forms’ instructions. Filers should rely on this update for the change described, which will be incorporated into the next revision of the form’s instructions.
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Form 1024 (Rev. January 2018)
Department of the Treasury Internal Revenue Service
Application for Recognition of Exemption
Under Section 501(a)
Go to www.irs.gov/Form1024 for instructions and the latest information.
OMB No. 1545-0057
If exempt status is approved, this application will be open for public inspection.
Read the instructions for each Part carefully. A User Fee must be attached to this application.
If the required information and appropriate documents are not submitted along with Form 8718 (with payment of the
appropriate user fee), the application may be returned to the organization.
Complete the Procedural Checklist that follows the form.
Part I. Identification of Applicant Must be completed by all applicants; also complete appropriate schedule. Submit only the schedule that applies to your organization. Do not submit blank schedules.
Check the appropriate box below to indicate the section under which the organization is applying:
a Section 501(c)(2)—Title holding corporations (Schedule A)
b Reserved for future use
c
Section 501(c)(5)—Labor, agricultural, or horticultural organizations (Schedule C)
d Section 501(c)(6)—Business leagues, chambers of commerce, etc. (Schedule C)
e
Section 501(c)(7)—Social clubs (Schedule D)
f
Section 501(c)(8)—Fraternal beneficiary societies, etc., providing life, sick, accident, or other benefits to members (Schedule E)
g
Section 501(c)(9)—Voluntary employees’ beneficiary associations (Parts I through IV and Schedule F)
h
Section 501(c)(10)—Domestic fraternal societies, orders, etc., not providing life, sick, accident, or other benefits (Schedule E)
i
Section 501(c)(12)—Benevolent life insurance associations, mutual ditch or irrigation companies, mutual or cooperative telephone
companies, or like organizations (Schedule G)
j Section 501(c)(13)—Cemeteries, crematoria, and like corporations (Schedule H)
k
Section 501(c)(15)—Mutual insurance companies or associations, other than life or marine (Schedule I)
l
Section 501(c)(17)—Trusts providing for the payment of supplemental unemployment compensation benefits (Parts I through IV and Schedule J)
m
Section 501(c)(19)—A post, organization, auxiliary unit, etc., of past or present members of the Armed Forces of the United States (Schedule K)
n
Section 501(c)(25)—Title holding corporations or trusts (Schedule A)
1a
Full name of organization (as shown in organizing document)
2 Employer identification number (EIN) (if
none, see Specific Instructions)
1b c/o Name (if applicable)
3 Name and telephone number of person to be
contacted if additional information is needed
1c
Address (number and street)
Room/Suite
1d
City, town or post office, state, and ZIP + 4. If you have a foreign address, see Specific
Instructions for Part I.
(
)
1e
Web site address
4 Month the annual accounting period ends
5 Date incorporated or formed
6Did the organization previously apply for recognition of exemption under this Code section or under any other section of the Code? If “Yes,” attach an explanation.
Yes
No
7 Has the organization filed Federal income tax returns or exempt organization information returns? . . . . . . . .
If “Yes,” state the form numbers, years filed, and Internal Revenue office where filed.
8Check the box for the type of organization. ATTACH A CONFORMED COPY OF THE CORRESPONDING ORGANIZING DOCUMENTS TO THE APPLICATION BEFORE MAILING.
a
Corporation—
Attach a copy of the Articles of Incorporation (including amendments and restatements) showing approval by the
appropriate state official; also attach a copy of the bylaws.
b
Trust—
Attach a copy of the Trust Indenture or Agreement, including all appropriate signatures and dates.
Association—
Attach a copy of the Articles of Association, Constitution, or other creating document, with a declaration (see instructions)
or other evidence that the organization was formed by adoption of the document by more than one person. Also include a
copy of the bylaws.
If this is a corporation or an unincorporated association that has not yet adopted bylaws, check here . . . . . . . .
I declare under the penalties of perjury that I am authorized to sign this application on behalf of the above organization, and that I have examined this application, including the accompanying schedules and attachments, and to the best of my knowledge it is true, correct, and complete.
PLEASE
F
SIGN
HERE
(Signature)
For Paperwork Reduction Act Notice, see instructions.
(Type or print name and title or authority of signer)
(Date)
Catalog No. 12343K
Form 1024 (Rev. 1-2018)
Page 2
Part II. Activities and Operational Information (Must be completed by all applicants)
1Provide a detailed narrative description of all the activities of the organization—past, present, and planned. Do not merely refer to or repeat the language in the organizational document. List each activity separately in the order of importance based on the relative time and other resources devoted to the activity. Indicate the percentage of time for each activity. Each description should include, as a minimum, the following: (a) a detailed description of the activity including its purpose and how each activity furthers your exempt purpose; (b) when the activity was or will be initiated; and (c) where and by whom the activity will be conducted.
2List the organization’s present and future sources of financial support, beginning with the largest source first.
Page 3
Part II. Activities and Operational Information (continued)
3Give the following information about the organization’s governing body:
a Names, addresses, and titles of officers, directors, trustees, etc.
bAnnual compensation
4If the organization is the outgrowth or continuation of any form of predecessor, state the name of each predecessor, the period during which it was in existence, and the reasons for its termination. Submit copies of all papers by which any transfer of assets was effected.
5If the applicant organization is now, or plans to be, connected in any way with any other organization, describe the other organization and explain the relationship (for example, financial support on a continuing basis; shared facilities or employees; same officers, directors, or trustees).
6If the organization has capital stock issued and outstanding, state: (1) class or classes of the stock; (2) number and par value of the shares;
(3) consideration for which they were issued; and (4) if any dividends have been paid or whether your organization’s creating instrument authorizes dividend payments on any class of capital stock.
7State the qualifications necessary for membership in the organization; the classes of membership (with the number of members in each class); and the voting rights and privileges received. If any group or class of persons is required to join, describe the requirement and explain the relationship between those members and members who join voluntarily. Submit copies of any membership solicitation material. Attach sample copies of all types of membership certificates issued.
8Explain how your organization’s assets will be distributed on dissolution.
Page 4
9Has the organization made or does it plan to make any distribution of its property or surplus funds to shareholders or
members? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If “Yes,” state the full details, including: (1) amounts or value; (2) source of funds or property distributed or to be distributed; and (3) basis of, and authority for, distribution or planned distribution.
10Does, or will, any part of your organization’s receipts represent payments for services performed or to be performed? . If “Yes,” state in detail the amount received and the character of the services performed or to be performed.
11Has the organization made, or does it plan to make, any payments to members or shareholders for services performed or
to be performed? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If “Yes,” state in detail the amount paid, the character of the services, and to whom the payments have been, or will be, made.
12Does the organization have any arrangement to provide insurance for members, their dependents, or others (including
provisions for the payment of sick or death benefits, pensions, or annuities)? . . . . . . . . . . . . .
If “Yes,” describe and explain the arrangement’s eligibility rules and attach a sample copy of each plan document and each type of policy issued.
13Is the organization under the supervisory jurisdiction of any public regulatory body, such as a social welfare agency, etc.? If “Yes,” submit copies of all administrative opinions or court decisions regarding this supervision, as well as copies of applications or requests for the opinions or decisions.
14 Does the organization now lease or does it plan to lease any property? . . . . . . . . . . . . . . .
If “Yes,” explain in detail. Include the amount of rent, a description of the property, and any relationship between the applicant organization and the other party. Also, attach a copy of any rental or lease agreement. (If the organization is a party, as a lessor, to multiple leases of rental real property under similar lease agreements, please attach a single representative copy of the leases.)
15Has the organization spent or does it plan to spend any money attempting to influence the selection, nomination, election,
or appointment of any person to any federal, state, or local public office or to an office in a political organization? . . If “Yes,” explain in detail and list the amounts spent or to be spent in each case.
16 Does the organization publish pamphlets, brochures, newsletters, journals, or similar printed material? . . . . .
If “Yes,” attach a recent copy of each.
Page 5
Part III. Financial Data (Must be completed by all applicants)
Complete the financial statements for the current year and for each of the 3 years immediately before it. If in existence less than 4 years, complete the statements for each year in existence. If in existence less than 1 year, also provide proposed budgets for the 2 years following the current year.
A. Statement of Revenue and Expenses
Revenue
1
Gross dues and assessments of members . . .
2
Gross contributions, gifts, etc
3Gross amounts derived from activities related to the organization’s exempt purpose (attach schedule)
(Include related cost of sales on line 9.) . . . .
4Gross amounts from unrelated business activities (attach schedule)
5 Gain from sale of assets, excluding inventory items
(attach schedule)
. . . . . . . . . .
6
Investment income (see instructions)
7
Other revenue (attach schedule)
8Total revenue (add lines 1 through 7) . . . . .
Expenses
9Expenses attributable to activities related to the organization’s exempt purposes . . . . . .
10Expenses attributable to unrelated business activities
11Contributions, gifts, grants, and similar amounts paid
12Disbursements to or for the benefit of members (attach schedule)
13Compensation of officers, directors, and trustees (attach schedule)
14
Other salaries and wages
15
Interest
16
Occupancy
17
Depreciation and depletion
. . . . . . .
18
Other expenses (attach schedule)
19Total expenses (add lines 9 through 18) . . . .
20Excess of revenue over expenses (line 8 minus
line 19) . . . . . . . . . . . . .
(a) Current Tax Year
3 Prior Tax Years or Proposed Budget for Next 2 Years
From
(b)
(c)
(d)
To
(e)Total
B. Balance Sheet (at the end of the period shown)
Current Tax Year
Assets
as of
Cash
Accounts receivable, net
3
Inventories
4
Bonds and notes receivable (attach schedule)
5
Corporate stocks (attach schedule)
Mortgage loans (attach schedule)
Other investments (attach schedule)
8
Depreciable and depletable assets (attach schedule)
9
Land
10
Other assets (attach schedule)
. . . . . . . . . . . . . . . . . . . . . . . . . .
11
Total assets
12
Liabilities
Accounts payable
13
Contributions, gifts, grants, etc., payable
Mortgages and notes payable (attach schedule)
Other liabilities (attach schedule)
Total liabilities
Fund Balances or Net Assets
Total fund balances or net assets
Total liabilities and fund balances or net assets (add line 16 and line 17)
If there has been any substantial change in any aspect of the organization’s financial activities since the end of the period shown above, check the box and attach a detailed explanation . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 6
If “Yes,” give the reasons for not filing this application within the 27-month period described in question 2. See Specific Instructions, Part IV, Line 3, before completing this item. Do not answer question 4.
If “No,” answer question 4.
4If you answer “No” to question 3, your organization’s qualification as a section 501(c)(9) or 501(c)(17) organization can be recognized only from the date this application is filed. Therefore, does the organization want us to consider its application as a request for recognition of exemption as a section 501(c)(9) or 501(c)(17) organization from the date the application is received and not retroactively to the date the organization was created or formed? . . . . . . . . . . . .
Page 7
Schedule A Organizations described in section 501(c)(2) or 501(c)(25) (Title-holding corporations or trusts)
1State the complete name, address, and EIN of each organization for which title to property is held and the number and type of the applicant organization’s stock held by each organization.
2If the annual excess of revenue over expenses has not been or will not be turned over to the organization for which title to property is held, state the purpose for which the excess is or will be retained by the title holding organization.
3In the case of a corporation described in section 501(c)(2), state the purpose of the organization for which title to property is held (as shown in its governing instrument) and the Code sections under which it is classified as exempt from tax. If the organization has received a determination or ruling letter recognizing it as exempt from taxation, please attach a copy of the letter.
4In the case of a corporation or trust described in section 501(c)(25), state the basis whereby each shareholder is described in section 501(c)(25)(C). For each organization described that has received a determination or ruling letter recognizing that organization as exempt from taxation, please attach a copy of the letter.
5With respect to the activities of the organization.
a Is any rent received attributable to personal property leased with real property? . . . . . . . . . . . .
If “Yes,” what percentage of the total rent, as reported on the financial statements in Part III, is attributable to personal property?
bWill the organization receive income which is incidentally derived from the holding of real property, such as income
from operation of a parking lot or from vending machines? . . . . . . . . . . . . . . . . . .
If “Yes,” what percentage of the organization’s gross income, as reported on the financial statements in Part III, is incidentally derived from the holding of real property?
cWill the organization receive income other than rent from real property or personal property leased with real property or income which is incidentally derived from the holding of real property? . . . . . . . . . . . . . .
If “Yes,” describe the source of the income.
Instructions
Line 1.—Provide the requested information on each organization for which the applicant organization holds title to property. Also indicate the number and types of shares of the applicant organization’s stock that are held by each.
Line 2.—For purposes of this question, “excess of revenue over expenses” is all of the organization’s income for a particular tax year less operating expenses.
Line 3.—Give the exempt purpose of each organization that is the basis for its exempt status and the Internal Revenue Code section that
describes the organization (as shown in its IRS determination letter).
Line 4.—Indicate if the shareholder is one of the following.
1.A qualified pension, profit-sharing, or stock bonus plan that meets the requirements of the Code;
2.A government plan;
3.An organization described in section 501(c)(3); or
4.An organization described in section 501(c)(25).
Page 8
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Completing the IRS Form 1024 requires careful attention to detail and a thorough understanding of your organization's fiscal operations and structure. This form, pivotal for certain types of nonprofit organizations seeking federal tax-exempt status, asks for comprehensive information about your organization's purposes, activities, and governance. The process might seem daunting at first, but breaking it down into manageable steps can simplify the task. Ensuring accuracy and completeness in your application not only facilitates a smoother review process by the IRS but also expedites the attainment of your organization's tax-exempt status.
After submitting Form 1024, your organization should prepare for a period of waiting. The IRS review process can be lengthy, often taking several months. During this time, you may be contacted for additional information or clarification about your application. It's important to respond promptly and thoroughly to any IRS inquiries. Once your application is approved, your organization will receive a determination letter from the IRS, confirming your tax-exempt status. This letter is crucial for your records and future operations, as it validates your organization's exemption from federal income tax.
The IRS 1024 form is used by organizations seeking tax-exempt status under sections other than 501(c)(3) of the Internal Revenue Code. These include social welfare organizations, civic leagues, and local associations of employees, among others.
Organizations looking to apply for tax-exempt status under sections 501(a) but not qualifying under the 501(c)(3) category must file this form. It’s essential for organizations that aim to operate without the burden of federal income tax.
To successfully complete the IRS 1024 form, organizations need to provide detailed information about their purpose, activities, governance structure, and financial data. This includes:
The IRS 1024 form can be filed either electronically through the IRS website or by mailing a paper form to the IRS. The electronic filing is preferred for its speed and efficiency.
The filing fee for submitting the IRS 1024 form varies based on the organization's gross receipts. As of the last update, there are two levels of fees:
These fees are subject to change, so it's recommended to check the IRS website for the most current information.
The timeline for receiving a response from the IRS after submitting the 1024 form can vary. Generally, it takes between 3 to 6 months. However, processing times can be longer depending on the complexity of the application and the IRS’s workload.
Yes, the IRS provides an option to track the status of your 1024 form application. This can be done by contacting the IRS directly via their designated phone number for tax-exempt status inquiries.
Expedited processing of the IRS 1024 form is possible in certain circumstances, such as pending grants that require tax-exempt status. Organizations must provide a written request detailing the reasons for the expedited processing along with their application.
If an application is denied, the IRS will provide a written explanation of the reason(s) for the denial. Organizations have the opportunity to appeal the decision by providing additional information or clarifications as requested by the IRS.
Yes, amendments can be made after submission. If an organization needs to update or correct information on the 1024 form, it should contact the IRS as soon as possible. The IRS may request a revised form or additional documentation to process the changes.
Filling out the IRS 1024 form, which organizations use to apply for recognition of exemption under certain sections of the Internal Revenue Code, can be a complex process. While aiming for accuracy is crucial, several common mistakes often occur during the submission. Here's a detailed breakdown of these errors:
Not checking the correct exemption category: One of the most frequent errors is failing to accurately identify and check the appropriate box for the exemption category under which the organization is applying. This mistake can lead to significant delays in the processing of the application.
Skipping required sections: Some applicants might overlook certain sections or questions that are mandatory. Every question that applies to the organization’s specific situation must be answered completely.
Insufficient detail in the narrative description of activities: The IRS requires a comprehensive narrative of the organization's activities, including current and planned activities. Often, applications provide vague or insufficient details, which can result in requests for more information or the rejection of the application.
Incorrect or missing Employer Identification Number (EIN): Organizations sometimes forget to include their EIN, or they might enter it incorrectly. This number is crucial for the IRS to process and review the application correctly.
Failure to sign and date the application: An unsigned or undated form might seem like a small oversight, but it can make the entire application invalid. This error can easily delay the exemption process.
Forgetting to attach the required schedules or additional documentation: Depending on the exemption category, additional documents or schedules may be needed. Forgetting to include these critical pieces can hinder the application's approval.
Miscalculating the user fee: The appropriate user fee must accompany the 1024 application, and its amount varies. Incorrect fee amounts can result in the rejection of the application.
Being mindful of these common errors and taking the time to review the form thoroughly can greatly improve the chances of a successful application process. It's also beneficial to consult with professionals who are experienced in nonprofit tax law to ensure that all aspects of the form are accurately completed.
When organizations seek to gain status as a tax-exempt entity, such as under sections 501(c)(4), (c)(5), or (c)(6) of the Internal Revenue Code, they often start with the IRS Form 1024. This form is just one piece of the puzzle in the complex process of obtaining tax-exempt status. Along with the IRS Form 1024, there are several other important documents and forms that are commonly used. These documents help to provide the IRS with a comprehensive view of the organization, ensuring the agency has all the necessary information to make an informed decision regarding the organization's tax-exempt status application.
Together, these forms and documents form the backbone of the application process for organizations seeking tax-exempt status. By providing the IRS with detailed information about their operations, purpose, and governance, organizations can navigate the complex process more effectively. The importance of accurately completing and submitting these additional forms cannot be overstated, as they significantly contribute to the IRS's understanding and evaluation of the application for tax-exempt status.
The IRS Form 1023 is closely related to the IRS 1024 form, as both are designed for organizations seeking tax-exempt status. However, Form 1023 is specifically for organizations seeking exemption under 501(c)(3), which typically includes charities, religious, educational, and scientific organizations. Both forms require detailed information about the organization's purpose, activities, and financial structure.
The IRS Form 990 is another document related to the IRS 1024 form. Form 990 is an annual reporting return that certain tax-exempt organizations must file with the IRS. It provides the IRS and the public with financial information about the nonprofit, offering a snapshot of the organization's operations, governance, and detailed financial data. Both the IRS 1024 and Form 990 ensure accountability and transparency in non-profit operations.
IRS Form 8868 is used to request an automatic extension of time to file an exempt organization return, including those who have filed Form 1024. It is relevant because it acknowledges that preparing proper documentation for IRS filings, including annual returns, can be complex and time-consuming. This form helps organizations avoid penalties for late submission.
The SS-4 Form, Application for Employer Identification Number (EIN), is another document similar to IRS 1024. Organizations must obtain an EIN before applying for tax-exempt status with the IRS 1024. The EIN is necessary for opening bank accounts, hiring employees, and conducting other business activities that require a taxpayer identification number.
IRS Form 8940, Request for Miscellaneous Determination, can complement IRS 1024 submissions. Organizations use Form 8940 to request specific determinations from the IRS, including but not limited to group exemption letters, changes to public charity classification, and advance approval of grant-making procedures. This form, like the 1024, plays a crucial role in maintaining an organization's compliance with IRS regulations and their tax-exempt status.
The State Articles of Incorporation is a foundational document for organizations filing IRS Form 1024. Before applying for tax-exempt status, an organization must be formally recognized as a legal entity, which typically involves filing articles of incorporation with their state. This document outlines the basic structure and purpose of the organization, similar to the detailed information required in the IRS 1024 form.
Filling out the IRS 1024 form, which organizations use to apply for tax-exempt status, requires careful attention to ensure accuracy and compliance. Here are essential dos and don'ts to keep in mind during the process:
Read the instructions thoroughly before beginning. The IRS provides detailed guidelines that can help avoid common mistakes.
Ensure your organization qualifies for exemption under the section you're applying. Different sections have different requirements.
Gather all necessary documentation before starting, including your organization's financial statements and governing documents.
Provide detailed answers. When the form asks for descriptions or explanations, be clear and complete in your responses.
Verify your Employer Identification Number (EIN) is correct. This number is crucial for the IRS to identify your organization.
Review the form for accuracy and completeness before submitting. Double-check all entries and attachments.
Keep a copy of the filed form and all supporting documents for your records. This includes any acknowledgment letters from the IRS.
Don't rush through the form. Taking your time can help prevent errors that could delay processing.
Avoid leaving sections blank unless instructed. If a question does not apply, mark it as "N/A" or "Not Applicable".
Don't underestimate the importance of the narrative description of activities. This part is crucial for the IRS to understand your organization's purpose.
Avoid using vague language. Be specific to give the IRS a clear picture of your operations.
Don't forget to sign and date the form. An unsigned application is considered incomplete.
Do not ignore the filing fee. Check the instructions for the correct amount and how to pay it.
Avoid submitting outdated forms. Always use the most current form available from the IRS website.
When it comes to applying for tax-exempt status, many organizations have to navigate the complex process of completing and submitting IRS forms. Among these, the IRS 1024 form is often misunderstood. Here are five common misconceptions about the IRS 1024 form:
Filling out and using the IRS 1024 form is an important step for organizations seeking recognition of tax-exempt status under certain subcategories. This process can be complex, but understanding the key elements can make it smoother. Here are six crucial takeaways to keep in mind:
Being thorough, accurate, and thoughtful throughout the application process can help ensure a smooth pathway to gaining tax-exempt status for your organization. Remember, the effort you put into properly filling out and submitting your IRS 1024 form is pivotal in setting your organization up for future success.
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