Who Can Apply for Tax Exemption Status?
Exemption Requirements to File Form 1023
Organizations that can file Form 1023 for exemption recognition under section 501(c)(3) of the Internal Revenue Code are churches, schools, colleges, universities, hospitals or medical research organizations, as well as Section 509(a) supporting organizations, a successor to other organizations, or an organization providing scholarships, fellowships, homes for the elderly or handicapped, low-income housing organizations, educational loans, or other educational grants to individuals and private foundations requesting approval of individual grant procedures.
Exemption Requirements to File Form 1024
Form 1024 is for all other organizations other than Section 501(c)(3). Most of these organizations can self-declare their tax-exempt status, but must still file a IRS 990 Form. If an organization of this type has their exempt status revoked, they must file a Form 1024 to be reinstated. The only exceptions are Sections 501(c)(9) and 501(c)(17) organizations, as these cannot self-declare. There are 11 schedules connected with the Form 1024, but only one schedule will be used with each type of organization filing.
Sometimes, the IRS recognizes a group of organizations as tax exempt if they are affiliated with one centralized organization. This designation avoids the need for each of the organizations to apply for exemption individually. Instead, a group exemption letter covers the organizations and has the same effect as an individual exemption letter except that it applies to more than one organization.