Organizations applying for recognition of tax-exempt status under section 501(a) or section 521 of the IRS code can use Form 1024 to submit their application. However, some organizations may use it to gain public recognition of their tax-exempt status, advance assurance of contributions deductibility and other benefits. Past, present, and planned activities must be included for evaluation.
What is Form 1024?
Form 1024 is used to apply for recognition of tax-exempt status from the IRS. This form is required for most organizations seeking recognition under section 501(a) or section 521, and it can also be used to obtain certain other benefits, such as public recognition of tax-exempt status, exemption from certain state taxes, assurance to donors of deductibility of contributions, and nonprofit mailing privileges. Form 1024 should not be used to apply for a group exemption; instead, a separate application should be submitted using Pub. 557. Subordinate organizations can also use Form 1024 to leave a group exemption if they wish to do so.
IRS Form 1024 – Who Needs to Fill It Out?
Form 1024 is used by most types of organizations to apply for recognition of exemption under section 501(a) or section 521. If you are seeking recognition of exemption, you must fill out Form 1024 to answer a series of questions and provide information to the IRS that will demonstrate that you meet the requirements for tax exemption. You should provide detailed information about your past, present, and planned activities, as well as financial data (budgeted or actual) that is consistent with other information provided. Submit the form in English, with financial information in US dollars, and combine amounts from within and outside the US. Note that certain organizations are not required to apply for tax-exempt status, but may find it beneficial to do so to receive a determination letter from the IRS.
Step-by-Step: Form 1024 Instructions For Filling Out the Document
To fill out Form 1024 properly, there are a few important general instructions to keep in mind. You must answer questions completely, providing sufficient detail about your past, present, and planned activities to demonstrate the compatibly to the subsection or section of 501(c) under which you are applying. Financial data should be consistent with other information in the application and may be given either as budgets or actual results. Your response to later questions may refer to previous answers. Additionally, all information must be provided in English, and financial information in United States dollars. There are different instructions for organizations applying for group exemption or a subordinate organization under a group exemption.
Below, we present a table that will help you understand how to fill out Form 1024.
| Information Required for Form 1024 | Details |
|---|---|
| General Instructions | Answer questions completely and provide sufficient detail about your activities |
| Financial Data | Consistency with other information, provided in U.S. dollars |
| References to Previous Answers | Responses to later questions may refer to previous answers |
| Group Exemption | Different instructions for organizations applying for group exemption |
Do You Need to File Form 1024 Each Year?
Do You Need to File Form 1024 Each Year? Generally, most types of organizations that qualify for exemption under 501(a) or 521 do not need to file Form 1024 annually. However, filing Form 1024 can be beneficial and may provide certain advantages, such as public recognition of tax-exempt status, potential state tax exemptions, assurance to donors of contributions deductibility, and nonprofit mail privileges. Group exemptions cannot be applied through Form 1024; however, a subordinate organization wishing to leave a group can file the form to obtain individual exemption. All information must be given in English, and all financial data must be given in United States (USD) dollars.
Official IRS Form 1024
Form 1024 needs to be electronically submitted via Pay.gov. You can find the latest version of the form on Pay.gov.
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