Instructions for the IRS Tax-Exempt Application
Some organizations are eligible to become tax-exempt, which allows the organization to operate without the need to pay federal taxes. However, not just anyone can become tax-exempt. Any organization that is a non-profit, such as a charitable organization, church or veteran organization, can apply for tax-exempt status with the government. The organization must be organized as a trust, corporation or association to qualify for this status. If your organization is not set up this way, you must correct that before you begin your application process.
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Instructions
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Apply for an Employer Identification Number, or EIN. Apply online at the Internal Revenue Service website or by phone. Or apply by fax or by mail by filling out Form SS-4 and printing it. Then fax it or mail it to the IRS. Your company must have an EIN to qualify for tax exemption.
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Print out Form 1023, Application for Recognition of Exemption.
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Fill in your business information in the Section 1, including the name of the business as it appears on your organizing documents, contact information and website.
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Answer the questions in Section II that deal with the way your business is organized. Include copies of the requested documents based on your answers in this section.
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Read Section III to find out if your organizing documents allow for tax exemption. If not, you must get these in order prior to filing your exemption paperwork.
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Write a document to detail the past, present and future activities of your organization, including activity details, who is involved and your funding sources. Attach this to your application to fulfill Section IV, including supporting documents.
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List all of your officers, trustees, top employees and top independent contractors in Section V, including names, titles, addresses and compensation amounts. Answer the questions listed in Section V to address more information about the listed people.
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Answer the questions in Section VI to address the goods and services you provide to your clients.
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Complete Section VII about your history. Fill out the appropriate schedules based on your answers.
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Answer the questions in Section VIII about your organization's activities. Follow all instructions based on the answers to these questions.
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Complete the financial information requested in section IX. If your business has been in existence less than four years, include each year. If it has been more than four years, include the information for the last four years.
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Answer the questions in Section X to determine if you are a private foundation or public entity. Follow the specific instructions based on your answers.
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Sign the bottom of the form.
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Include a check for the appropriate fee amount. Businesses that bring in less than $10,000 pay only $300 as of 2011, while businesses that bring in more must pay $750.
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Mail your completed application and check to the IRS at the address listed on Form 1023.
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