The IRS recently revised Form 1024, Application for Recognition of Exemption Under Section 501(a) or Section 521 of the Internal Revenue Code, in order to allow e-filing. Submitting this form online will help reduce errors and shorten the application processing time. Optima Tax Relief reviews the revisions to Form 1024 that organizations should be aware of.
As of January 3, 2022, Form 1024 must now be submitted electronically. The IRS is providing a 90-day grace period and will continue to accept paper versions of Form 1024 during this time. Organizations should apply online on Pay.gov by uploading a PDF file containing the following materials:
- Organizing document plus amendments
- Form 2848 or Form 8821
- Supplemental responses, and
- Expedited handling request, if applicable
There is a $600 fee to submit the form, which must be paid directly from a bank account or via credit or debit card at the time of submission.
Organizations seeking to apply for exempt status under Section 521 of the Internal Revenue Code, which gives exemption to qualifying farmer cooperatives, should do so using the electronic Form 1024 instead of the previously used Form 1028.
Additionally, organizations must use the electronic Form 1024 to apply for exemption under Section 501(c)(11), (14), (16), (18), (21), (22), (23), (26), (27), (28), (29) and 501(d).
Section 501(c)(3) establishments, which typically include charitable organizations, churches and religious organizations, and private foundations, must continue to use electronic Form 1023 or Form 1023-EZ.
Section 501(c)(4) organizations, including social welfare organizations and local associations of employees, must continue to use electronic Form 1024-A.