Instructions for F Instructions for Form 1024, Application for Recognition

Instructions for Form 1024

Department of the Treasury
Internal Revenue Service

(Rev. January 2018)

Application for Recognition of Exemption Under Section 501(a).
Section references are to the Internal Revenue
Code unless otherwise noted.

Note. Keep a copy of the completed Form
1024 in the organization’s permanent
records.

Future Developments

For the latest information about
developments related to Form 1024 and
its instructions, such as legislation
enacted after they were published, go to
IRS.gov/Form1024.

What's New

If you are an organization such as a civic
league, social welfare organization
(including certain war veterans'
organizations), or local associations of
employees applying under section 501(c)
(4), don’t use Form 1024. Instead, use
Form 1024-A, Application for Recognition
of Exemption Under Section 501(c)(4) of
the Internal Revenue Code.

General Instructions

User fee. When submitting Form 1024,
also submit Form 8718, User Fee for
Exempt Organization Determination Letter
Request, and the user fee called for in
Form 8718. You can get Form 8718 and
additional forms and publications at
IRS.gov. For fee information, see Rev.
Proc. 2018-5, 2018-1 I.R.B. 233, available
at IRS.gov/irb/2018–01_IRB, or the latest
annual update. For future updates to the
user fee, go to IRS.gov/Form1024.

For additional information, see:
Pub. 557, Tax-Exempt Status for Your
Organization;
Pub. 598, Tax on Unrelated Business
Income of Exempt Organizations; and
IRS.gov/Charities.

Purpose of Form
Don’t use Form 1024 if you are an
organization applying under
CAUTION Section 501(c)(4). Instead, use
Form 1024-A.

!

Form 1024 is used by most types of
organizations to apply for recognition of
exemption under section 501(a). See Part
I of the application.
Even if these organizations aren’t
required to apply for tax-exempt status,
they may wish to file Form 1024 to receive
a determination letter of IRS recognition of
their section 501(c) status in order to
obtain certain incidental benefits such as:
Public recognition of tax-exempt status,
Jan 16, 2018

Exemption from certain state taxes,
Advance assurance to donors of
deductibility of contributions (in certain
cases), and
Nonprofit mailing privileges, etc.

of the month in which it was formed, and if
the IRS approves the application, the
effective date of the organization’s section
501(c)(9) or (17) status will be the date it
was organized.

Note. Generally, Form 1024 isn’t used to
apply for a group exemption letter. For
information on how to apply for a group
exemption letter, see Pub. 557.

Generally, if an organization doesn’t file
its Form 1024 within 15 months after the
end of the month in which it was formed, it
won’t qualify for exempt status as a
section 501(c)(9) or (17) organization
during the period before the date of its
application. For exceptions and special
rules, including automatic extensions in
some cases, see Part IV.

Note. Tax benefits for certain
homeowners associations under section
528 are available to organizations that
aren’t exempt from federal income tax. To
elect these benefits, file a properly
completed and timely filed (including
extensions) Form 1120-H, U.S. Income
Tax Return for Homeowners Associations,
rather than Form 1024.

What To File

Don’t submit any blank schedules that
don’t apply to your type of organization.
Most organizations applying for
exemption under section 501(a) must
complete Parts I through III.
Section 501(c)(9), voluntary
employees’ beneficiary associations, and
section 501(c)(17), supplemental
unemployment benefit trusts, applicants
should also complete Part IV.
In addition, each organization must
complete the schedule indicated on
page 1 of the application for the code
section under which it seeks recognition of
exemption.

Attachments

For any attachments submitted with
Form 1024:
Show the organization’s name,
address, and employer identification
number (EIN);
Identify the Part and line item number to
which the attachment relates;
Use 8-1/2 x 11 inch paper for any
attachments; and
Include any court decisions, rulings,
opinions, etc., that will assist us in
processing your application. Generally,
tape recordings aren’t acceptable unless
accompanied by a transcript.

When To File (Section 501(c)(9)
or (17) Organization)

An organization must file Form 1024 to be
recognized as an organization described
in section 501(c)(9) or 501(c)(17).
Generally, if an organization files its
application within 15 months after the end
Cat. No. 47909G

The date of receipt is the date of the
U.S. postmark on the cover in which an
exemption application is mailed or, if no
postmark appears on the cover, the date
the application is stamped as received by
the IRS.

Where To File
U.S. mail. Send the completed Form
1024, user fee payment, and all other
required information to:
Internal Revenue Service
Attention: EO Determination Letters
Stop 31
P.O. Box 12192
Covington, KY 41012-0192
Private delivery services.
Organizations can use certain private
delivery services (PDS) designated by the
IRS to meet the “timely mailing as timely
filing” rule for tax returns. Go to IRS.gov/
PDS for the current list of PDS.
The private delivery service can tell you
how to get written proof of the mailing
date.
If you're using PDS, send your
application, user fee payment, and all
other required information to:
Internal Revenue Service
Attention: EO Determination Letters
Stop 31
201 West Rivercenter Boulevard
Covington, KY 41011
The IRS will determine the
organization’s tax-exempt status and
whether any annual returns must be filed.

Private delivery services can't
deliver items to P.O. boxes. You
CAUTION must use the U.S. Postal Service
to mail any items to an IRS P.O. box
address.

!

Signature Requirements

An officer, a trustee who is authorized to
sign, or another person authorized by a
power of attorney, must sign the Form
1024 application. Attach a power of
attorney to the application. You may use
Form 2848, Power of Attorney and
Declaration of Representative, for this
purpose.

After You Submit Form 1024
We will acknowledge receiving your
application in writing. You may expect to
receive this notice within 21 days of the
postmark date of the Form 1024. Read the
notice thoroughly because it will provide
further information about the processing of
your Form 1024.
Generally, we assign applications in
the order we receive them. Unless the
application is approved for expedited
processing, it will be worked in the order
received.
No additional information needed.
If our review shows that you qualify, we
will send you a letter stating that you are
exempt under the subsection of section
501(c) that you applied.
Additional information needed. If
the review shows that we need additional
information or changes, we will call or
write you. Examples of the types of
questions you may be asked are available
at IRS.gov. If the additional information
indicates that you qualify, we will send you
a letter stating that you are exempt under
the subsection of section 501(c) that you
applied. If we conclude that you don’t
qualify for exemption, we will send you a
letter that explains our position and your
appeal rights.

Language and Currency
Requirements

Language requirements. Complete
Form 1024 and statements in English.
Provide an English translation if the
organizational document or bylaws are in
any other language. See the conformed
copy requirements in the line 8
instructions under Part I. You may be
asked to provide English translations of
foreign language publications that the
organization produces or distributes and
that are submitted with the application.
Financial requirements. Report all
financial information in U.S. dollars
(specify the conversion rate used).
Combine amounts from within and outside

the United States and report the total for
each item on the financial statements.

Example
Gross investment income
From U.S. sources
From non-U.S. sources
Amount to report on
income statement

$4,000
1,000
______
$5,000

Annual Information Return

If an annual information return is due while
the organization’s application for
recognition of exempt status is pending
with the IRS (including any appeal of a
proposed adverse determination), the
organization should file Form 990, Return
of Organization Exempt From Income Tax,
or Form 990-EZ, Short Form Return of
Organization Exempt From Income Tax, at
the following address. Indicate that an
application is pending.
Internal Revenue Service
Ogden Service Center
Ogden, UT 84201-0027
The organization may also be eligible to
file Form 990-N, Electronic Notice
(e-Postcard) for Tax-Exempt
Organizations Not Required to File Form
990 or Form 990–EZ, available at IRS.gov.
If an organization has unrelated
business income of $1,000 or more, file
Form 990-T, Exempt Organization
Business Income Tax Return.
Applicants under sections 501(c)(5),
(9), and (17) should see the Form 990 or
Form 990-EZ instructions for special
provisions regarding substitutions for
certain parts of that form.

Annual Filing Requirements

Certain organizations aren't required to file
an information return (Form 990 or Form
990-EZ) or notice (Form 990-N).
Generally, organizations not required to
file Form 990, or Form 990-EZ, or Form
990-N include churches, certain church
affiliated organizations, and certain
affiliates of a governmental unit. Note that
organizations that are exempt from filing
Form 990 or Form 990-EZ because of
gross receipts are generally required to
submit Form 990-N if they choose not to
file Form 990 or Form 990-EZ. For more
information, see the Instructions for Form
990 and Form 990-EZ. See IRS.gov for
more information.

Public Inspection

Information available for public
inspection. If the IRS approves the
organization’s application for section
501(c) status, the following items will be
open to public inspection.
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The complete application and any
supporting documents.
Any correspondence between the
organization and the IRS concerning Form
1024, including Form 2848.
The letter the IRS issues approving
your exemption.
Annual information returns (Form 990,
990-EZ, or 990-N) including schedules,
except for the names and addresses of
contributors and other identifying
information about contributors.
Information not available for public
inspection. The following items won’t be
open for public inspection.
Any information relating to a trade
secret, patent, style of work, or apparatus
that, if released, would adversely affect
the organization. The IRS must approve
withholding this information.
Any other information that would
adversely affect national defense. The IRS
must approve withholding this information.
User fee check.
Contributors’ names and addresses
and other identifying information about
contributors included with Form 990 or
Form 990-EZ.
Form 990-T.
Applicants must identify this
information by clearly marking it
CAUTION “NOT SUBJECT TO PUBLIC
INSPECTION” and must attach a
statement to explain why the organization
asks that the information be withheld. If
the IRS agrees, the information will be
withheld.

!

Making documents available for public
inspection. Both the organization and
the IRS must make the information that is
subject to disclosure available for public
inspection. The public can request this
information by submitting Form 4506-A,
Request for Public Inspection or Copy of
Exempt or Political Organization IRS
Form. The public also may request
inspection of the information or a copy of
the information directly from you.
An exempt organization may post the
documents required to be available for
public inspection on its own website. The
information return and exemption
application materials must be posted
exactly as filed with the IRS. Only the
information that isn’t open for public
inspection may be deleted.
If an exempt organization posts the
documents on its website, it must provide
notice of the website address where the
documents may be found, but it need not
provide copies of the information.
However, documents posted on an
organization’s website must still be made
available for public inspection without
charge at its main office during regular
business hours.

Instructions for Form 1024

Documents aren’t considered available
for public inspection on a website if the
otherwise disclosable information is edited
or subject to editing by a third party when
posted. See Pub. 557 for additional
guidance on public inspection.
In the case of organizing documents
and bylaws, see the line 8 instructions
under Part I.

Specific Instructions
Part I. Identification of
Applicant
Line 1. Full name and address of
organization. Enter the organization’s
name exactly as it appears in its
organizing documents, including
amendments. If the organization will be
operating under another name, show the
other name in parentheses.
For a foreign address, enter the
information in the following order: city,
province or state, and country. Follow the
country’s practice in placing the postal
code in the address. Don’t abbreviate the
country name.
Line 2. Employer identification
number (EIN). All organizations must
have an EIN. Enter the nine-digit EIN the
IRS assigned to the organization. If the
organization doesn't have an EIN, it must
apply for one. An EIN can be applied for
by visiting the IRS website at IRS.gov/EIN.
The organization may also apply for an
EIN by faxing or mailing Form SS-4 to the
IRS. Organizations outside the United
States or U.S. possessions may also
apply for an EIN by calling 267-941-1099
(toll call). Don’t apply for an EIN more than
once.
Line 3. Person to contact. Enter the
name and telephone number of the person
to be contacted during business hours if
more information is needed. The contact
person should be an officer, director, or a
person with power of attorney who is
familiar with the organization’s activities
and who is authorized to act on its behalf.
Attach Form 2848 or other power of
attorney.
Line 4. Month the annual
accounting period ends. Enter the
month the organization’s annual
accounting period ends. The
organization’s accounting period is usually
the 12-month period that is the
organization’s tax year. The organization’s
first tax year depends on the accounting
period it chooses. The first tax year could
be less than 12 months.
Line 5. Date incorporated or
formed. Enter the date the organization
became a legal entity. For corporations,
this is the date that the articles of
incorporation were approved by the
Instructions for Form 1024

appropriate state official. For
unincorporated organizations, it is the date
its constitution or articles of association
were adopted.
Line 6. Indicate if the organization has
ever filed Form 1023, Form 1024, or other
exemption application with the IRS. If
“Yes,” attach an explanation.
Line 7. Indicate if the organization has
ever filed federal income tax returns as a
taxable organization or filed returns as an
exempt organization (e.g., Forms 990,
990-EZ, 990-N, 990-PF, and 990-T).
Line 8. Type of organization and
organizational documents. Organizing
instrument. Submit a conformed copy of
the organizing instrument. If the
organization doesn’t have an organizing
instrument, it won’t qualify for exempt
status. A conformed copy is one that
agrees with the original and all
amendments to it. The conformed copy
may be:
A photocopy of the original signed and
dated organizing document; or
A copy of the organizing document that
is unsigned but is sent with a written
declaration, signed by an authorized
individual, that states that the copy is a
complete and accurate copy of the original
signed and dated document.
Corporation. A “corporation” is an
entity organized under a federal or state
statute, or a statute of a federally
recognized Indian tribal or Alaskan native
government. A corporation's organizing
document is its “articles of incorporation.”
Certification of filing. If formed under
state statute, your articles of incorporation
must show certification of filing. This
means your articles show evidence that on
a specific date they were filed with and
approved by an appropriate state
authority. The document must be an exact
copy of what is on file with your state.
Substitute Articles of Incorporation.
If you don't have a copy of your articles of
incorporation showing evidence of having
been filed and approved by an appropriate
state official, you may submit a substitute
copy of your articles of incorporation. This
substitute copy may be handwritten,
typed, printed, or otherwise reproduced. It
must be accompanied by a declaration,
signed by an officer authorized to sign for
you, that it is a complete and correct copy
of the articles of incorporation and that it
contains all the powers, principles,
purposes, functions, and other provisions
by which you currently govern yourself.
Unincorporated association. An
“unincorporated association” formed
under state law must have at least two
members who have signed a written
document for a specifically defined
purpose. The articles of organization of an
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unincorporated association must include
the name of your organization, your
purpose, the date the document was
adopted, and the signatures of at least two
individuals. If your copy doesn't contain
the proper signatures and date of
adoption, you may submit a written
declaration that states your copy is a
complete and accurate copy of the signed
and dated original. Your declaration
should clearly indicate the original date of
adoption.
Bylaws may be considered an

TIP organizing document only if they

are properly structured (includes
name, purpose, signatures, and intent to
form an organization).
Bylaws. "Bylaws" are generally the
internal rules and regulations of an
organization. If you have bylaws, you
should submit a current copy.
Bylaws don't need to be signed unless
they are the organizing document
described in Unincorporated association
above.
Trust. In the case of a trust, a copy of
the trustee's or authorized representative's
signature and dated trust indenture or
agreement must be furnished. Generally,
a trust must be funded with property, such
as money, real estate, or personal
property to be legally created. Enter the
date that the trust was funded.

Part II. Activities and
Operational Information
Line 2. If it’s anticipated that the
organization’s principal sources of support
will increase or decrease substantially in
relation to the organization’s total support,
attach a statement describing anticipated
changes and explaining the basis for the
expectation.
Line 3a. Furnish the mailing addresses
of the organization’s principal officers,
directors, or trustees. Don’t give the
address of the organization.
Line 3b. The annual compensation
includes salary, bonus, and any other form
of payment to the individual for services
performed for the organization.
Line 4. If your organization’s activities
were formerly performed under another
name or if your organization was a part of
another organization (tax-exempt or
nonexempt), furnish the requested
information. Otherwise, enter “N/A.”
Line 5. Enter your organization’s
current or planned connection with any
tax-exempt or nonexempt organization.
Line 6. If your organization has issued
stock as a means of indicating ownership
by its members or others, furnish the

requested information. Otherwise, enter
“N/A.”
Line 7. If your organization is a
membership organization, enter the
requested information. Otherwise, enter
“N/A.”
Line 8. If your organization should
cease operations as a tax-exempt
organization, explain to whom its assets
will be distributed.
Line 9. Indicate if the organization
distributes, or plans to distribute, any of its
property or funds (such as a distribution of
profits) to its shareholders or members.
Line 10. Indicate if the organization
performs any services for any other
organization or individual for which it is
paid a fee.
Line 11. Don’t include the normal
salary of officers or employees.
Line 12. Answer “Yes” if the
organization either provides insurance
through a third party or provides the
insurance itself.

All financial information for the current
year must cover the period beginning on
the first day of the organization’s
established annual accounting period and
ending on any day that is within 60 days of
the date of this application.
If the date of this application is less
than 60 days after the first day of the
current accounting period, no financial
information is required for the current year.
Financial information is required for the
3 preceding years regardless of the
current year requirements.
Note. If no financial information is
required for the current year, the
preceding year’s financial information can
end on any day that is within 60 days of
the date of this application.
Prepare the statements using the
method of accounting and the accounting
period the organization uses in keeping its
books and records.
If the organization uses a method other
than the cash receipts and disbursements
method, attach a statement explaining the
method used.

Line 13. Examples of public regulatory
bodies are HUD, HHS, Public Utilities
Commission, Housing Commission, and a
state insurance commission.

A. Statement of Revenue and
Expenses

Line 14. Provide the specified
information about leased property whether
it is used for exempt functions or for other
purposes.

Line 1. Include amounts received from
the members that represent the annual
dues and any special assessments or
initiation fees.

Line 15. Provide the specified
information about political expenditures
whether they were made to support or to
oppose particular candidates.

Line 2. Don’t include amounts received
from the general public or a governmental
unit for the exercise or performance of the
organization’s exempt function.

Line 16. This includes any printed
material that may be used to publicize the
organization’s activities or as an
informational item to members or potential
members.

Line 3. Examples of such income
include the income derived by a social
club from the sale of food or beverage to
its members, the sale of burial lots by a
cemetery association, and fees charged
by a social welfare organization or trade
association for an educational seminar it
conducted.

Part III. Financial Data

The Statement of Revenue and Expenses
must be completed for the current year
and each of the 3 years immediately
before it (or the years the organization has
existed, if less than 4).
Any applicant that has existed for less
than 1 year must give financial data for the
current year and proposed budgets for the
following 2 years.
Any applicant that has been in
existence more than 1 year but seeks
recognition of exemption for only the
current year and future years (rather than
from the date of its formation) should give
financial data for the current year and
proposed budgets for the following 2
years.
We may request financial data for more
than 4 years if necessary.

Line 4. Enter the organization’s gross
income from activities that are regularly
carried on and not related to the
organization’s exempt purposes.
Examples of such income include fees
from the commercial testing of products,
income from renting office equipment or
other personal property, and income from
the sale of advertising in an exempt
organization periodical. See Pub. 598 for
information about unrelated business
income and activities.
Line 5. Attach a statement showing the
description of each asset, the name of the
person to whom sold, and the amount
received. In the case of publicly traded
securities sold through a broker, the name
of the purchaser isn’t required.
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Line 6. Include the income received
from dividends, interest, payments
received on securities loans (as defined in
section 512(a)(5)), rents, and royalties.
Line 7. Enter the total income from all
sources that isn’t reported on lines 1
through 6. Include, for example, income
from special events (such as raffles and
dances) that isn’t taxable as unrelated
business income. Attach a statement that
lists each type of revenue source and the
amount derived from each.
Line 9. Enter the expenses directly
related to the income sources reported on
line 3 of this part.
Line 10. Enter the expenses directly
related to the income sources reported on
line 4 of this part.
Line 11. Attach a statement showing
the name of the recipient, a brief
description of the purposes or conditions
of payment, and the amount paid.
Line 12. Attach a statement showing
the total amount paid for each benefit
category, such as disability, death,
sickness, hospitalization, unemployment
compensation, or strike benefits.
Lines 13–18. Use lines 13 through 18
to report expenses that aren’t directly
related to the expense categories listed on
lines 9 and 10.
For example, salaries attributable to the
organization’s exempt purpose activities
should be included with any other
expenses reportable on line 9 rather than
being reported separately on line 14.
Salaries reportable on line 14 include,
for example, those attributable to special
events, to the solicitation of contributions,
and to the overall management and
operation of the organization.
Line 13. Attach a statement that shows
the name of the person compensated, the
office or position, the average amount of
time devoted to business per week,
month, etc., and the amount of annual
compensation.
Line 14. Enter the total of employees’
salaries not reported on line 13.
Line 15. Enter the total interest
expense for the year, excluding mortgage
interest treated as occupancy expense on
line 16.
Line 16. Enter the amount paid for the
use of office space or other facilities; heat,
light, power, and other utilities; outside
janitorial services; mortgage interest; real
estate taxes; and similar expenses.
Line 17. If your organization records
depreciation, depletion, and similar
expenses, enter the total.
Line 18. Attach a statement listing the
type and amount of each significant
Instructions for Form 1024

expense for which a separate line isn’t
provided. Report other miscellaneous
expenses as a single total if not
substantial in amount.

B. Balance Sheet
Line 1. Enter the total interest and noninterest-bearing cash in checking and
savings accounts, temporary cash
investments (money market funds, CDs,
treasury bills, or other obligations that
mature in less than 1 year), change funds,
and petty cash funds.
Line 2. Enter the total accounts
receivable that arose from the sale of
goods and/or performance of services.
Line 3. Enter the amount of materials,
goods, and supplies purchased or
manufactured by the organization and
held to be sold or used in some future
period.
Line 4. Attach a statement that shows
the name of the borrower, a brief
description of the obligation, the rate of
return on the principal indebtedness, the
due date, and the amount due.
Line 5. Attach a statement listing the
organization’s corporate stock holdings.
For stock of closely held corporations,
the statement should show the name of
the corporation, a brief summary of the
corporation’s capital structure, the number
of shares held, and their value as carried
on the organization’s books. If such
valuation doesn’t reflect current fair market
value, also include fair market value.
For stock traded on an organized
exchange or in substantial quantities over
the counter, the statement should show
the name of the corporation, a description
of the stock and the principal exchange on
which it is traded, the number of shares
held, and their value as carried on the
organization’s books.
Line 6. Attach a statement that shows
the borrower’s name, purpose of loan,
repayment terms, interest rate, and
original amount of loan. Report each loan
separately, even if more than one loan
was made to the same person.
Line 7. Enter the book value of
securities held of the U.S., state, or
municipal governments. Also enter the
book value of buildings and equipment
held for investment purposes. Attach a
statement identifying each.
Line 8. Enter the book value of
buildings and equipment not held for
investment. This includes plants and
equipment used by the organization in
conducting its exempt activities. Attach a
statement listing these assets held at the
end of the current tax-year period and the
cost or other basis.
Instructions for Form 1024

Line 9. Enter the book value of land not
held for investment.
Line 10. Enter the book value of each
category of assets not reported on lines 1
through 9. Attach a statement listing each.
Line 12. Enter the total of accounts
payable to suppliers and others, such as
salaries payable, accrued payroll taxes,
and interest payable.
Line 13. Enter the unpaid portion of
grants and contributions that the
organization has made a commitment to
pay to other organizations or individuals.
Line 14. Enter the total of mortgages
and other notes payable at the end of the
year. Attach a statement that shows each
item separately and the lender’s name,
purpose of loan, repayment terms, interest
rate, and original amount.
Line 15. Enter the amount of each
liability not reported on lines 12 through
14. Attach a separate statement.
Line 17. Under fund accounting, an
organization segregates its assets,
liabilities, and net assets into separate
funds according to restrictions on the use
of certain assets. Each fund is like a
separate entity in that it has a
self-balancing set of accounts showing
assets, liabilities, equity (fund balance),
income, and expenses. If the organization
uses fund accounting, report the total of all
fund balances on line 17.
If the organization doesn’t use fund
accounting, report only the “net assets”
account balances, such as capital stock,
paid-in capital, and retained earnings or
accumulated income.

Part IV. Notice Requirements

Part IV applies only to section 501(c)(9)
and (17) organizations. Organizations
applying for tax-exempt status under other
sections of the code shouldn’t fill in Part
IV.
Line 1. If you answer “Yes,” don’t
answer questions 2 through 4. If you
answer “No,” go to line 2.
Line 2. Relief from the 15-month filing
requirement is granted automatically if the
organization submits a completed Form
1024 within 12 months from the end of the
15-month period.
To get this extension, an organization
must add the following statement at the
top of its application: “Filed Pursuant to
Section 301.9100-2.” No request for a
letter ruling is required to obtain an
automatic extension.
Line 3. See Regulations sections
301.9100-1 and 301.9100-3 for
information about a discretionary
extension beyond the 27-month period.
Under this regulation, the IRS will allow an
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organization a reasonable extension of
time to file a Form 1024, if it submits
evidence to establish that it acted
reasonably and in good faith, and granting
relief won’t prejudice the interests of the
government.
Showing reasonable action and good
faith. An organization acted reasonably
and showed good faith if at least one of
the following is true.
The organization filed its application
before the IRS discovered its failure to file.
The organization failed to file because
of intervening events beyond its control.
The organization exercised reasonable
diligence but wasn’t aware of the filing
requirement. To determine whether the
organization exercised reasonable
diligence, it is necessary to take into
account the complexity of filing and the
organization’s experience in these
matters.
The organization reasonably relied
upon the written advice of the IRS.
The organization reasonably relied
upon the advice of a qualified tax
professional who failed to file or advise the
organization to file Form 1024. An
organization can’t rely on the advice of a
qualified tax professional if it knows or
should know that he or she isn’t
competent to render advice on filing
exemption applications or isn’t aware of all
the relevant facts.
Not acting reasonably and in good
faith. An organization hasn’t acted
reasonably and in good faith if it chose not
to file after being informed of the
requirement to file and the consequences
of failure to do so. Furthermore, an
organization hasn’t acted reasonably and
in good faith if it used hindsight to request
an extension of time to file. That is, if after
the original deadline to file passes,
specific facts have changed so that filing
an application becomes advantageous to
an organization, the IRS won’t ordinarily
grant an extension. To qualify for an
extension in this situation, the organization
must prove that its decision to file didn’t
involve hindsight.
No prejudice to the interest of the government. Prejudice to the interest of the
government results if granting an
extension of time to file to an organization
results in a lower total tax liability for the
years to which the filing applies than
would have been the case if the
organization had applied on time. Before
granting an extension, the IRS may
require the organization requesting it to
submit a statement from an independent
auditor certifying that no prejudice will
result if the extension is granted.
Procedure for requesting extension.
To request a discretionary extension, an
organization must submit the following
with its Form 1024.

A statement showing the date Form
1024 should have been filed and the date
it was actually filed.
An affidavit describing in detail the
events that led to the failure to apply and
to the discovery of that failure. If the
organization relied on a qualified tax
professional’s advice, the affidavit must
describe the engagement and
responsibilities of the professional and the
extent to which the organization relied on
him or her.
All documents relevant to the election
application.
A dated declaration, signed by an
individual authorized to act for the
organization, that includes the following
statement: “Under penalties of perjury, I
declare that I have examined this request,
including accompanying documents, and,
to the best of my knowledge and belief,
the request contains all the relevant facts
relating to the request, and such facts are
true, correct, and complete.” The
individual who signs for the organization
must have personal knowledge of the
facts and circumstances at issue.
A detailed affidavit from individuals
having knowledge or information about the
events that led to the failure to make the
application and to the discovery of that
failure. These individuals include
accountants or attorneys knowledgeable
in tax matters who advised the
organization concerning the application.
Any affidavit from a tax professional must
describe the engagement and
responsibilities of the professional as well
as the advice that the professional
provided to the organization. The affidavit
also must include the name, current
address, and taxpayer identification

number of the individual making the
affidavit (the affiant). The affiant also must
forward with the affidavit a dated and
signed declaration that states: “Under
penalties of perjury, I declare that I have
examined this request, including
accompanying documents, and, to the
best of my knowledge and belief, the
request contains all the relevant facts
relating to the request, and such facts are
true, correct, and complete.”
The reasons for late filing should be
specific to your particular organization and
situation. Regulations section 301.9100-3
lists the factors the IRS will consider to
determine if good cause exists for granting
a discretionary extension of time to file the
application. To address these factors your
response on line 3 should provide the
following information.
Whether the organization consulted an
attorney or accountant knowledgeable in
tax matters, or communicated with a
responsible IRS employee (before or after
the organization was created), to ascertain
the organization’s federal filing
requirements and, if so, the names and
occupations or titles of the persons
contacted, the approximate dates, and the
substance of the information obtained.
How and when the organization learned
about the 15-month deadline for filing
Form 1024.
Whether any significant intervening
circumstances beyond the organization’s
control prevented it from submitting the
application timely or within a reasonable
period of time after it learned of the
requirement to file the application within
the 15-month period.
Any other information that you believe
may establish reasonable action and good

faith and no prejudice to the interest of the
government for not filing timely or
otherwise justify granting the relief sought.
A request for relief under this section is
treated as part of the request for the
exemption determination letter and is
covered by the user fee submitted with
Form 8718.
Line 4. If you answer “No,” the
organization may receive an adverse letter
limiting the effective date of its exempt
status to the date its application was
received.
Paperwork Reduction Act Notice. We
ask for the information on this form to carry
out the Internal Revenue laws of the
United States. If you want your
organization to be recognized as tax
exempt by the IRS, you are required to
give us this information. We need it to
determine whether the organization meets
the legal requirements for tax-exempt
status.
The organization isn’t required to
provide the information requested on a
form that is subject to the Paperwork
Reduction Act unless the form displays a
valid OMB control number. Books or
records relating to a form or its instructions
must be retained as long as their contents
may become material in the administration
of any Internal Revenue law. The rules
governing the confidentiality of the Form
1024 application are covered in section
6104.
The time needed to complete and file
this form will vary depending on individual
circumstances.
The estimated average times are:

Taxpayer Burden for Exempt Organizations

Form 1024
Parts I–III
Part IV
Sch. A
Sch. C
Sch. D
Sch. E
Sch. F
Sch. G
Sch. H
Sch. I
Sch. J
Sch. K

Comments and suggestions. If you
have comments concerning the accuracy
of these time estimates or suggestions for
making Form 1024 simpler, we would be
happy to hear from you.
You can send us comments from
IRS.gov/FormComments.

Learning about
the law or the
form
3 hr., 2 min.
47 min.
18 min.
12 min.
18 min.
18 min.
6 min.
6 min.
6 min.
30 min.
6 min.
6 min.

Recordkeeping
26 hr., 1 min.
1 hr., 40 min.
2 hr., 52 min.
57 min.
4 hr., 4 min.
1 hr., 40 min.
2 hr., 23 min.
1 hr., 54 min.
1 hr., 40 min.
5 hr., 30 min.
2 hr., 23 min.
3 hr., 21 min.

Or you can write to the
Internal Revenue Service
Tax Forms and Publications Division
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224

-6-

Preparing and
sending the form
to the IRS
5 hr., 35 min.
51 min.
21 min.
13 min.
22 min.
20 min.
8 min.
7 min.
7 min.
36 min.
8 min.
9 min.

Don’t send Form 1024 to this address.
Instead, see Where To File, earlier.

Instructions for Form 1024