What Are Some Tips for Applying for Tax Exempt Status?


Quick Answer

When applying for tax exempt status, an applicant can speed the process by including the correct fee, verifying that each required page is complete and describing the organization's activities in detail, according to the IRS. In addition, an applicant should add all required documents, such as the supporting schedules, financial disclosures, Form 1023 with an authorized, original signature and a copy of the organization's by-laws.

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Full Answer

One important way to streamline the tax exempt status application is to prove that the organization is qualified for the exempt status, states the IRS. Simply mentioning the group's purpose is not adequate and may result in a returned application or further contact with IRS representatives. Instead, the organization should provide details about its activities and explain how the activities achieve the overall purpose. A new organization should write about planned activities.

Before filling out an application, the IRS suggests that the applicant identify whether the organization is a trust, corporation or association. Based on that status, the group must prepare an updated copy of the appropriate organizing document. The applicant should also check the state's filing requirements to ensure that the organization is registered in accordance with state tax and charity codes. All groups must provide an employer ID number when applying for tax exempt status.

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