Form 1023

Nonprofits use this form to apply for tax-exempt status or to requestreinstatement after automatic revocation.

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Form 1023 at a Glance

  • What Is Form 1023? Form 1023 is the IRS application used by organizations seeking recognition of federal tax-exempt status under Section 501(c)(3).
  • Who Should File? Organizations seeking 501(c)(3) recognition, generally use Form 1023 unless they qualify for the streamlined Form 1023-EZ or fall under an IRS exception to the application requirement.
  • What Does It Establish? An approved Form 1023 application provides IRS recognition that the organization qualifies for exemption under Section 501(c)(3) and determines its applicable foundation classification. .
  • How Is It Filed? Form 1023 must be filed electronically through Pay.gov with the required user fee and supporting documents, including the organization's organizing documents.
  • Form 1023 vs. 1023-EZ: Eligible smaller organizations may use Form 1023-EZ, while organizations that do not meet its eligibility requirements must use the full Form 1023.
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Table of Contents

  • What is Form 1023?
  • Who must file Form 1023?
  • How many parts are there in IRS Form 1023?
  • Schedules of IRS Form 1023
  • How to E-File Form 1023?
  • What is the next process after submitting form1023?

What is Form 1023?

Organizations use Form 1023 to apply for an "tax-exempt" status under section 501(c)(3) of the IRS. Tax exempt status allows eligible nonprofit organizations to be exempt from federal income tax and to receive tax-deductible charitable contributions.

Who must File Form 1023?

Form 1023 IRS is filed by nonprofit organizations operating under section 501(c)(3). They are

  • Charitable and Religious organizations
  • Educational entities
  • Scientific organizations
  • Literary organizations
  • Sports organizations (to foster national or international amateur sports competition)
  • Organizations prevent cruelty to children or animals.

How many parts are there in IRS Form 1023?

IRS tax Form 1023 includes 11 parts and you should provide the necessary information for each section.

  • Part I- Organization details
  • Part II- Organizational Structure
  • Part III- Required Provisions in Your Organizing Document
  • Part IV- Narrative Description of Your Activities
  • Part V- Compensation and Other Financial Arrangements with Your Officers, Directors, Trustees, Employees, and Independent Contractors
  • Part VI- Your Members and Other Individuals and Organizations That Receive Benefits from You
  • Part VII- Your History
  • Part VIII- Your Specific Activities
  • Part IX- Financial Data
  • Part X- Public Charity Status
  • Part XI- User Fee Information

Schedules of IRS 1023 form

Form 1023 irs includes 8 schedules which the IRS requires to collect additional information about an organization type or activities.

  • Schedule A - Church
  • Schedule B - school, college, or university
  • Schedule C - Hospitals or Medical Research Organizations
  • Schedule D - Section 509(a)(3) supporting organization
  • Schedule E - Filing 27 months late or applying for reinstatement after automatic revocation of tax-exempt status.
  • Schedule F - Low-Income Housing Organizations
  • Schedule G - Successors to Other Organizations
  • Schedule H - Organizations Providing Scholarships, Fellowships, Educational Loans, or other educational grants to individuals and/or a private foundation.

How to E-File Form 1023?

E-file IRS 1023 Form with the IRS by following the given steps.

Step 1: Create an account on www.pay.gov

Step 2: Select the Internal Revenue service Form 1023

Step 3: Fill out all applicable parts (Parts I–XI) and attach required schedules (A–H)

Step 4: Submit form 1023 to the IRS.

What is the next process after submitting form1023?

After Submitting Form 1023, the IRS will issue a determination letter confirming the organization's tax-exempt status and annual filing requirements (based on gross receipt and total assets)

  • Form 990 is filed by larger organizations with gross receipts greater than or equal to $200,000 or total assets greater than or equal to $500,000
  • Form 990-EZ is for mid-size organizations with gross receipts under $200,000 and total assets under $500,000
  • Form 990-N is for small organizations with gross receipts of $50,000 or less.
  • Form 990-PF is filed by both exempt and taxable private foundations to provide a detailed report of the foundation’s assets, liabilities, income, and expenses.

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Ready to Apply for tax-exempt status?

Submit your completed Form 1023 to the IRS and e-file your annual form 990 series using TaxZerone.

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