501c3 Requirements
The date an organization files its Form 1023 application can impact the effective date of its tax-exempt status, once granted. Most organizations must file Form 1023 by the end of the 15th month after they were created, with a 12-month extension available. An organization that files its application before the deadline will be recognized as tax exempt under section 501(c)(3) from the date of its creation, also known as the incorporation date.
An organization that files after the deadline typically is recognized as tax exempt from the date the Form 1023 application is filed, not the earlier incorporation date.
Each organization should take into consideration these timeframes and the 501c3 requirements to determine the appropriate time to file Form 1023, keeping in mind that the Form 1023 application process becomes more complicated the longer an organization waits, particularly with respect to required budget and program information.
User fees have increased for all applications for exemption (Forms 1023, 1024, and 1028) postmarked after January 3, 2010:
- $400 for organizations whose gross receipts are $10,000 or less annually over a 4-year period
- $850 for organizations whose gross receipts exceed $10,000 annually over a 4-year period
- $3,000 for group exemption letters
An organization that is not a private foundation is not required to file Form 1023 unless its annual gross receipts are normally more than $5,000. An organization must file Form 1023 within 90 days of the end of the year in which it exceeds this threshold.
For more information on tax exempt organizations and 501c3 requirements, sign up to receive free e-mail updates from the IRS.
http://www.irs.gov/charities/content/0,,id=154838,00.html