How To Use IRS Tax-Exempt Forms To Apply for or Maintain Nonprofit Status

If you are starting a nonprofit, church, or charity and want to be recognized as tax‑exempt by the IRS, you’ll typically use Form 1023, Form 1023‑EZ, or Form 1024 (for some other types of exempt organizations). These are not simple one‑page forms; they are full applications where you prove you qualify under the Internal Revenue Code and that your organization is organized and operated for exempt purposes.

The official system that handles these applications is the Internal Revenue Service (IRS) Exempt Organizations (EO) program, mainly through the IRS online submission portal and, for questions, the IRS Exempt Organizations customer service phone line. State rules, fees, and timelines may vary, but the federal exemption process itself runs through the IRS.

Quick summary: which IRS tax-exempt form do you need?

• Most 501(c)(3) charities (over $50,000 in annual revenue or complex activities) → Form 1023 (long form)
• Small 501(c)(3) charities (projected under $50,000/year for first 3 years and under $250,000 in assets) → Form 1023‑EZ (streamlined), if eligible
• Other exempt types (social welfare groups, 501(c)(4), business leagues, etc.) → Form 1024 or 1024‑A
• Annual information filings after approval → Form 990‑N, 990‑EZ, or 990
• Core first step today → Download the instructions for the form you think you need and read the eligibility section before doing anything else

1. What the IRS tax-exempt forms actually do (and which one you likely need)

These IRS forms are formal applications for tax‑exempt recognition, meaning the IRS will review your organizing documents, planned activities, and finances to decide whether to grant you exemption under a specific code section (usually 501(c)(3) for charities).

For a brand‑new charity that will mainly rely on donations and small grants, the real‑world starting point is: decide whether you qualify for Form 1023‑EZ or must use the full Form 1023; this choice affects how much information you need to provide and how long the application will take to put together.

Key terms to know:

• 501(c)(3) — A section of the Internal Revenue Code that covers charitable, religious, educational, and similar nonprofits whose donors can usually claim tax-deductible contributions.
• Form 1023 — The standard IRS application for recognition of exemption under 501(c)(3), with detailed questions about activities, finances, and governance.
• Form 1023‑EZ — A shorter, online-only version of the 1023 for small, simple organizations that meet strict eligibility rules.
• Determination letter — The official IRS letter you receive if your application is approved; funders and donors often ask for this.

Concrete action you can take today:
Download and read the first 3–4 pages of the instructions for Form 1023‑EZ and Form 1023 (whichever you think might apply); the instructions clearly list who can and cannot use the 1023‑EZ, and this will prevent you from wasting time on the wrong form.

After this step, you’ll usually realize whether you qualify for 1023‑EZ, or you’ll see that you must use the longer Form 1023 because of your projected revenue, activities (like foreign operations), or organizational structure.

2. Where and how to officially apply for IRS tax-exempt status

The IRS now requires most tax‑exempt applications to be filed electronically through the IRS online submission portal (often called Pay.gov or another IRS e‑submission tool in the instructions), not by regular mail.

In practice, you’ll interact with two main official touchpoints:

• The IRS online submission portal where you create an account, fill out Form 1023, 1023‑EZ, or 1024 online, and pay the user fee with a bank account or card.
• The IRS Exempt Organizations customer service phone line, which you can find by searching for “IRS exempt organizations phone number” and checking that the site ends in .gov before calling.

A simple phone script if you’re unsure:
“I’m starting a nonprofit and want to apply for tax-exempt status. How do I know if I should file Form 1023‑EZ or Form 1023, and where do I submit it online?”

The IRS representative typically will not give legal advice, but they can point you to the correct forms, the current user fees, and the correct online portal.

3. What to prepare before you touch the IRS tax-exempt form

If you open Form 1023 or 1023‑EZ without your paperwork ready, you’ll end up stuck repeatedly. The IRS forms assume you already have your nonprofit legally formed at the state level and have key documents ready to upload or reference.

Documents you’ll typically need:

• Organizing documents — For a corporation, this is your Articles of Incorporation stamped by your state; for a trust, the trust instrument; for an association, your organizing document. The IRS often requires that the document include specific charitable purpose and dissolution clauses.
• Bylaws or operating rules — Your internal governance document that explains how your board works, how officers are selected, and how decisions are made.
• Detailed narrative and financials — A description of your activities (who you serve, what you do, where the money goes), plus projected budgets for the next 3 years showing expected revenue and expenses by category.

In real life, one of the most time‑consuming tasks is writing the activity narrative for Form 1023; you’ll be asked to explain your programs, who benefits, how you select participants, and whether anyone with control over the organization receives payments or benefits.

Before starting the application online, also confirm:

• Your legal name matches your state paperwork exactly.
• Your Employer Identification Number (EIN) is already issued by the IRS (often required before filing the exemption application).
• You have board member names and titles ready, because the forms commonly ask about governance.

4. Step-by-step: filing your IRS tax-exempt form and what happens next

Step-by-step sequence

1. Confirm your entity is properly formed at the state level.
   Make sure your nonprofit corporation, trust, or association is legally created under state law and that your organizing document includes IRS-required language about charitable purpose and distribution of assets upon dissolution. If the language is missing, you’ll typically need to amend your articles with your state before applying.

2. Determine the correct IRS tax-exempt form.
   Read the eligibility section for Form 1023‑EZ in its instructions. If you exceed revenue/asset limits, work with disqualified activities, or are a certain type of organization (like a hospital or school), you’ll usually have to use the full Form 1023 instead. For non‑501(c)(3) types (like 501(c)(4) social welfare groups), review Form 1024 or 1024‑A instructions.

3. Gather and organize your documents.
   Collect your Articles of Incorporation (or trust agreement), bylaws, EIN letter, and create your 3‑year budget projections. Draft a clear activity narrative describing each program, who you serve, and how the activities further your exempt purpose.

4. Create an account on the official IRS submission portal.
   Go to the IRS site (check that the address ends in .gov), locate the online submission or e-file page for Form 1023, 1023‑EZ, or 1024, and create an account. You’ll typically need an email address, login credentials, and payment method for the user fee.

5. Complete the online form carefully.
   Enter your organization’s name, EIN, address, responsible officer, and board information. Answer questions about your activities, compensation, relationships with insiders, and any foreign operations. For the full Form 1023, you’ll usually upload PDF copies of your organizing documents and other attachments.

6. Pay the required IRS user fee and submit.
   The IRS charges a user fee for exemption applications (the exact amount changes over time and can differ between 1023‑EZ and full 1023). Once you pay and click submit, the portal typically provides a confirmation screen or email; save or print this for your records.

7. What to expect next from the IRS.
   After submission, the IRS commonly:

   • Logs your application and issues an acknowledgment (may be by mail or available in the portal).
   • Either processes it directly (especially for straightforward 1023‑EZ applications) or assigns it to a specialist for detailed review.
   • If the specialist has questions or sees missing info, they send a written request for additional information (sometimes called a development letter) with a deadline for your response.
   • Once satisfied, they issue an IRS determination letter either recognizing your tax‑exempt status or explaining why it’s denied.

You are not guaranteed approval or a specific timeline, but responding quickly and clearly to any IRS follow‑up request helps keep the process moving.

5. Real-world friction to watch for

Real-world friction to watch for

A frequent delay comes when an organization files Form 1023 or 1023‑EZ but their Articles of Incorporation lack the exact charitable purpose and dissolution language the IRS requires; in that case, the IRS often sends a letter asking for amended articles and puts the file on hold until it receives acceptable documentation, which can add weeks or months. If this happens, work with your state’s corporate filing office or a qualified attorney to quickly amend your articles, then send the stamped, updated version back to the IRS by the deadline listed in the letter.

6. Getting legitimate help and avoiding scams

For tax‑exempt applications, you can get assistance through:

• IRS Taxpayer Assistance Centers (TACs) — Local IRS offices where you can ask general questions or get help understanding notices; you usually need an appointment, which you can set up using the phone number on the IRS.gov contact page.
• Low Income Taxpayer Clinics (LITCs) or nonprofit legal clinics — Some law schools and community organizations operate clinics that assist small nonprofits with formation and IRS filings; search for “low income taxpayer clinic” or “nonprofit legal clinic” plus your state.

When searching online, look for websites and portals that end in .gov before entering sensitive information or paying fees. Be cautious of third parties who:

• Guarantee “instant” IRS approval.
• Charge very high fees but still require you to do most of the work.
• Ask you to send your EIN, Social Security number, or banking details by unencrypted email.

Rules, fees, and required forms can change and may vary based on your organization’s type and situation, so always double-check the latest IRS instructions and your state’s requirements before you submit. Once you’ve confirmed your entity is formed, chosen the correct IRS form, and gathered your key documents, your next official step is to create an account on the IRS submission portal and start the actual Form 1023, 1023‑EZ, or 1024 application online.