The IRS Form 1024 is a crucial document used by organizations seeking to apply for recognition of exemption from federal income tax under Section 501(a) of the Internal Revenue Code. This form plays a vital role in determining whether an organization qualifies as a tax-exempt entity. Understanding its requirements and implications can greatly benefit those looking to navigate the complexities of nonprofit status.
The IRS Form 1024 plays a crucial role in the landscape of nonprofit organizations, serving as the primary application for entities seeking recognition of exemption under Section 501(a) of the Internal Revenue Code. This form is essential for organizations aiming to operate as tax-exempt entities, particularly those classified under 501(c)(4), which includes social welfare organizations and local associations of employees. Understanding the intricacies of Form 1024 is vital for any group aspiring to navigate the complex world of nonprofit status. It requires detailed information about the organization’s structure, purpose, and activities, ensuring that applicants clearly articulate their mission and how it aligns with the requirements set forth by the IRS. Additionally, the form necessitates a comprehensive description of the organization's planned programs, funding sources, and governance. Completing this form accurately is not just a bureaucratic step; it can significantly impact the organization’s ability to receive tax-deductible contributions and operate effectively within its community.
The form you are looking for begins on the next page of this file. Before viewing it, please see the important update information below.
New Mailing Address
The mailing address for certain forms have change since the forms were last published. The new mailing address are shown below.
Mailing Address for Forms 1023, 1024, 1024-A, 1028, 5300, 5307, 5310, 5310-A, 5316, 8717, 8718, 8940:
Internal Revenue Service
TE/GE Stop 31A Team 105
P.O. Box 12192
Covington, KY 41012–0192
Deliveries by private delivery service (PDS) should be made to:
7940 Kentucky Drive
Florence, KY 41042
This update supplements these forms’ instructions. Filers should rely on this update for the change described, which will be incorporated into the next revision of the form’s instructions.
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Form 1024 (Rev. January 2018)
Department of the Treasury Internal Revenue Service
Application for Recognition of Exemption
Under Section 501(a)
Go to www.irs.gov/Form1024 for instructions and the latest information.
OMB No. 1545-0057
If exempt status is approved, this application will be open for public inspection.
Read the instructions for each Part carefully. A User Fee must be attached to this application.
If the required information and appropriate documents are not submitted along with Form 8718 (with payment of the
appropriate user fee), the application may be returned to the organization.
Complete the Procedural Checklist that follows the form.
Part I. Identification of Applicant Must be completed by all applicants; also complete appropriate schedule. Submit only the schedule that applies to your organization. Do not submit blank schedules.
Check the appropriate box below to indicate the section under which the organization is applying:
a Section 501(c)(2)—Title holding corporations (Schedule A)
b Reserved for future use
c
Section 501(c)(5)—Labor, agricultural, or horticultural organizations (Schedule C)
d Section 501(c)(6)—Business leagues, chambers of commerce, etc. (Schedule C)
e
Section 501(c)(7)—Social clubs (Schedule D)
f
Section 501(c)(8)—Fraternal beneficiary societies, etc., providing life, sick, accident, or other benefits to members (Schedule E)
g
Section 501(c)(9)—Voluntary employees’ beneficiary associations (Parts I through IV and Schedule F)
h
Section 501(c)(10)—Domestic fraternal societies, orders, etc., not providing life, sick, accident, or other benefits (Schedule E)
i
Section 501(c)(12)—Benevolent life insurance associations, mutual ditch or irrigation companies, mutual or cooperative telephone
companies, or like organizations (Schedule G)
j Section 501(c)(13)—Cemeteries, crematoria, and like corporations (Schedule H)
k
Section 501(c)(15)—Mutual insurance companies or associations, other than life or marine (Schedule I)
l
Section 501(c)(17)—Trusts providing for the payment of supplemental unemployment compensation benefits (Parts I through IV and Schedule J)
m
Section 501(c)(19)—A post, organization, auxiliary unit, etc., of past or present members of the Armed Forces of the United States (Schedule K)
n
Section 501(c)(25)—Title holding corporations or trusts (Schedule A)
1a
Full name of organization (as shown in organizing document)
2 Employer identification number (EIN) (if
none, see Specific Instructions)
1b c/o Name (if applicable)
3 Name and telephone number of person to be
contacted if additional information is needed
1c
Address (number and street)
Room/Suite
1d
City, town or post office, state, and ZIP + 4. If you have a foreign address, see Specific
Instructions for Part I.
(
)
1e
Web site address
4 Month the annual accounting period ends
5 Date incorporated or formed
6Did the organization previously apply for recognition of exemption under this Code section or under any other section of the Code? If “Yes,” attach an explanation.
Yes
No
7 Has the organization filed Federal income tax returns or exempt organization information returns? . . . . . . . .
If “Yes,” state the form numbers, years filed, and Internal Revenue office where filed.
8Check the box for the type of organization. ATTACH A CONFORMED COPY OF THE CORRESPONDING ORGANIZING DOCUMENTS TO THE APPLICATION BEFORE MAILING.
a
Corporation—
Attach a copy of the Articles of Incorporation (including amendments and restatements) showing approval by the
appropriate state official; also attach a copy of the bylaws.
b
Trust—
Attach a copy of the Trust Indenture or Agreement, including all appropriate signatures and dates.
Association—
Attach a copy of the Articles of Association, Constitution, or other creating document, with a declaration (see instructions)
or other evidence that the organization was formed by adoption of the document by more than one person. Also include a
copy of the bylaws.
If this is a corporation or an unincorporated association that has not yet adopted bylaws, check here . . . . . . . .
I declare under the penalties of perjury that I am authorized to sign this application on behalf of the above organization, and that I have examined this application, including the accompanying schedules and attachments, and to the best of my knowledge it is true, correct, and complete.
PLEASE
F
SIGN
HERE
(Signature)
For Paperwork Reduction Act Notice, see instructions.
(Type or print name and title or authority of signer)
(Date)
Catalog No. 12343K
Form 1024 (Rev. 1-2018)
Page 2
Part II. Activities and Operational Information (Must be completed by all applicants)
1Provide a detailed narrative description of all the activities of the organization—past, present, and planned. Do not merely refer to or repeat the language in the organizational document. List each activity separately in the order of importance based on the relative time and other resources devoted to the activity. Indicate the percentage of time for each activity. Each description should include, as a minimum, the following: (a) a detailed description of the activity including its purpose and how each activity furthers your exempt purpose; (b) when the activity was or will be initiated; and (c) where and by whom the activity will be conducted.
2List the organization’s present and future sources of financial support, beginning with the largest source first.
Page 3
Part II. Activities and Operational Information (continued)
3Give the following information about the organization’s governing body:
a Names, addresses, and titles of officers, directors, trustees, etc.
bAnnual compensation
4If the organization is the outgrowth or continuation of any form of predecessor, state the name of each predecessor, the period during which it was in existence, and the reasons for its termination. Submit copies of all papers by which any transfer of assets was effected.
5If the applicant organization is now, or plans to be, connected in any way with any other organization, describe the other organization and explain the relationship (for example, financial support on a continuing basis; shared facilities or employees; same officers, directors, or trustees).
6If the organization has capital stock issued and outstanding, state: (1) class or classes of the stock; (2) number and par value of the shares;
(3) consideration for which they were issued; and (4) if any dividends have been paid or whether your organization’s creating instrument authorizes dividend payments on any class of capital stock.
7State the qualifications necessary for membership in the organization; the classes of membership (with the number of members in each class); and the voting rights and privileges received. If any group or class of persons is required to join, describe the requirement and explain the relationship between those members and members who join voluntarily. Submit copies of any membership solicitation material. Attach sample copies of all types of membership certificates issued.
8Explain how your organization’s assets will be distributed on dissolution.
Page 4
9Has the organization made or does it plan to make any distribution of its property or surplus funds to shareholders or
members? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If “Yes,” state the full details, including: (1) amounts or value; (2) source of funds or property distributed or to be distributed; and (3) basis of, and authority for, distribution or planned distribution.
10Does, or will, any part of your organization’s receipts represent payments for services performed or to be performed? . If “Yes,” state in detail the amount received and the character of the services performed or to be performed.
11Has the organization made, or does it plan to make, any payments to members or shareholders for services performed or
to be performed? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If “Yes,” state in detail the amount paid, the character of the services, and to whom the payments have been, or will be, made.
12Does the organization have any arrangement to provide insurance for members, their dependents, or others (including
provisions for the payment of sick or death benefits, pensions, or annuities)? . . . . . . . . . . . . .
If “Yes,” describe and explain the arrangement’s eligibility rules and attach a sample copy of each plan document and each type of policy issued.
13Is the organization under the supervisory jurisdiction of any public regulatory body, such as a social welfare agency, etc.? If “Yes,” submit copies of all administrative opinions or court decisions regarding this supervision, as well as copies of applications or requests for the opinions or decisions.
14 Does the organization now lease or does it plan to lease any property? . . . . . . . . . . . . . . .
If “Yes,” explain in detail. Include the amount of rent, a description of the property, and any relationship between the applicant organization and the other party. Also, attach a copy of any rental or lease agreement. (If the organization is a party, as a lessor, to multiple leases of rental real property under similar lease agreements, please attach a single representative copy of the leases.)
15Has the organization spent or does it plan to spend any money attempting to influence the selection, nomination, election,
or appointment of any person to any federal, state, or local public office or to an office in a political organization? . . If “Yes,” explain in detail and list the amounts spent or to be spent in each case.
16 Does the organization publish pamphlets, brochures, newsletters, journals, or similar printed material? . . . . .
If “Yes,” attach a recent copy of each.
Page 5
Part III. Financial Data (Must be completed by all applicants)
Complete the financial statements for the current year and for each of the 3 years immediately before it. If in existence less than 4 years, complete the statements for each year in existence. If in existence less than 1 year, also provide proposed budgets for the 2 years following the current year.
A. Statement of Revenue and Expenses
Revenue
1
Gross dues and assessments of members . . .
2
Gross contributions, gifts, etc
3Gross amounts derived from activities related to the organization’s exempt purpose (attach schedule)
(Include related cost of sales on line 9.) . . . .
4Gross amounts from unrelated business activities (attach schedule)
5 Gain from sale of assets, excluding inventory items
(attach schedule)
. . . . . . . . . .
6
Investment income (see instructions)
7
Other revenue (attach schedule)
8Total revenue (add lines 1 through 7) . . . . .
Expenses
9Expenses attributable to activities related to the organization’s exempt purposes . . . . . .
10Expenses attributable to unrelated business activities
11Contributions, gifts, grants, and similar amounts paid
12Disbursements to or for the benefit of members (attach schedule)
13Compensation of officers, directors, and trustees (attach schedule)
14
Other salaries and wages
15
Interest
16
Occupancy
17
Depreciation and depletion
. . . . . . .
18
Other expenses (attach schedule)
19Total expenses (add lines 9 through 18) . . . .
20Excess of revenue over expenses (line 8 minus
line 19) . . . . . . . . . . . . .
(a) Current Tax Year
3 Prior Tax Years or Proposed Budget for Next 2 Years
From
(b)
(c)
(d)
To
(e)Total
B. Balance Sheet (at the end of the period shown)
Current Tax Year
Assets
as of
Cash
Accounts receivable, net
3
Inventories
4
Bonds and notes receivable (attach schedule)
5
Corporate stocks (attach schedule)
Mortgage loans (attach schedule)
Other investments (attach schedule)
8
Depreciable and depletable assets (attach schedule)
9
Land
10
Other assets (attach schedule)
. . . . . . . . . . . . . . . . . . . . . . . . . .
11
Total assets
12
Liabilities
Accounts payable
13
Contributions, gifts, grants, etc., payable
Mortgages and notes payable (attach schedule)
Other liabilities (attach schedule)
Total liabilities
Fund Balances or Net Assets
Total fund balances or net assets
Total liabilities and fund balances or net assets (add line 16 and line 17)
If there has been any substantial change in any aspect of the organization’s financial activities since the end of the period shown above, check the box and attach a detailed explanation . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 6
If “Yes,” give the reasons for not filing this application within the 27-month period described in question 2. See Specific Instructions, Part IV, Line 3, before completing this item. Do not answer question 4.
If “No,” answer question 4.
4If you answer “No” to question 3, your organization’s qualification as a section 501(c)(9) or 501(c)(17) organization can be recognized only from the date this application is filed. Therefore, does the organization want us to consider its application as a request for recognition of exemption as a section 501(c)(9) or 501(c)(17) organization from the date the application is received and not retroactively to the date the organization was created or formed? . . . . . . . . . . . .
Page 7
Schedule A Organizations described in section 501(c)(2) or 501(c)(25) (Title-holding corporations or trusts)
1State the complete name, address, and EIN of each organization for which title to property is held and the number and type of the applicant organization’s stock held by each organization.
2If the annual excess of revenue over expenses has not been or will not be turned over to the organization for which title to property is held, state the purpose for which the excess is or will be retained by the title holding organization.
3In the case of a corporation described in section 501(c)(2), state the purpose of the organization for which title to property is held (as shown in its governing instrument) and the Code sections under which it is classified as exempt from tax. If the organization has received a determination or ruling letter recognizing it as exempt from taxation, please attach a copy of the letter.
4In the case of a corporation or trust described in section 501(c)(25), state the basis whereby each shareholder is described in section 501(c)(25)(C). For each organization described that has received a determination or ruling letter recognizing that organization as exempt from taxation, please attach a copy of the letter.
5With respect to the activities of the organization.
a Is any rent received attributable to personal property leased with real property? . . . . . . . . . . . .
If “Yes,” what percentage of the total rent, as reported on the financial statements in Part III, is attributable to personal property?
bWill the organization receive income which is incidentally derived from the holding of real property, such as income
from operation of a parking lot or from vending machines? . . . . . . . . . . . . . . . . . .
If “Yes,” what percentage of the organization’s gross income, as reported on the financial statements in Part III, is incidentally derived from the holding of real property?
cWill the organization receive income other than rent from real property or personal property leased with real property or income which is incidentally derived from the holding of real property? . . . . . . . . . . . . . .
If “Yes,” describe the source of the income.
Instructions
Line 1.—Provide the requested information on each organization for which the applicant organization holds title to property. Also indicate the number and types of shares of the applicant organization’s stock that are held by each.
Line 2.—For purposes of this question, “excess of revenue over expenses” is all of the organization’s income for a particular tax year less operating expenses.
Line 3.—Give the exempt purpose of each organization that is the basis for its exempt status and the Internal Revenue Code section that
describes the organization (as shown in its IRS determination letter).
Line 4.—Indicate if the shareholder is one of the following.
1.A qualified pension, profit-sharing, or stock bonus plan that meets the requirements of the Code;
2.A government plan;
3.An organization described in section 501(c)(3); or
4.An organization described in section 501(c)(25).
Page 8
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Completing the IRS Form 1024 requires careful attention to detail. This form is essential for organizations seeking tax-exempt status under section 501(a) of the Internal Revenue Code. Once you have filled out the form correctly, you will be ready to submit it along with the necessary documentation to the IRS.
After submitting the form, it is important to keep a copy for your records. The IRS will review your application, which may take several months. Be prepared to respond to any follow-up requests for additional information during this time.
What is the IRS Form 1024?
The IRS Form 1024 is a form used by organizations seeking recognition of exemption from federal income tax under Section 501(a) of the Internal Revenue Code. This form is specifically for organizations that are not classified under the more common 501(c)(3) category, which includes charitable organizations. Instead, Form 1024 is often used by social welfare organizations, labor unions, and other types of nonprofit entities.
Who needs to file Form 1024?
Organizations that wish to be recognized as tax-exempt under sections other than 501(c)(3) need to file Form 1024. This includes groups like 501(c)(4) social welfare organizations, 501(c)(5) labor organizations, and 501(c)(6) business leagues. If your organization fits into one of these categories and plans to engage in activities that require tax-exempt status, you will need to complete this form.
What information is required on Form 1024?
Form 1024 requires a variety of information about your organization, including:
Providing thorough and accurate information is crucial for the approval of your application.
How long does it take to process Form 1024?
The processing time for Form 1024 can vary. Generally, it may take several months for the IRS to review and respond to your application. Factors such as the complexity of the application and the current workload of the IRS can affect this timeline. It’s advisable to submit the form well in advance of any deadlines your organization may have.
What happens after Form 1024 is submitted?
Once you submit Form 1024, the IRS will review the application to determine if your organization qualifies for tax-exempt status. You may receive a request for additional information if the IRS needs clarification on any aspect of your application. After the review process, the IRS will issue a determination letter either granting or denying the tax-exempt status.
Can I appeal if my Form 1024 is denied?
If the IRS denies your application for tax-exempt status, you do have the option to appeal the decision. The IRS will provide details on how to appeal in the denial letter. It’s important to carefully review the reasons for the denial and address those issues in your appeal to improve your chances of a successful outcome.
Filling out the IRS Form 1024 can be a daunting task for many individuals and organizations seeking tax-exempt status. Mistakes can lead to delays or even denials of applications. One common error is not providing sufficient information about the organization’s purpose. The IRS requires a clear and concise description of activities. Without this clarity, the application may be rejected or require additional clarification, prolonging the process.
Another frequent mistake is neglecting to include the required supporting documentation. This can include bylaws, articles of incorporation, and financial statements. Each piece of documentation plays a crucial role in demonstrating the organization’s legitimacy and purpose. Failing to attach these documents can result in an incomplete application.
Individuals often overlook the importance of ensuring that all information is current and accurate. For instance, outdated addresses or incorrect names can lead to confusion. The IRS relies on this information to communicate effectively with applicants. Therefore, double-checking these details is essential before submission.
Some applicants make the mistake of not paying the appropriate user fee. The IRS requires a fee for processing the Form 1024, and failing to include it can delay the application. It is advisable to check the latest fee schedule on the IRS website, as fees can change over time.
Additionally, applicants sometimes misinterpret the eligibility criteria for tax-exempt status. Understanding the specific requirements for different types of organizations is crucial. Misclassifying the organization can lead to applying for the wrong status, which could result in a denial.
Another common error involves the narrative description of activities. This section should be detailed, explaining how the organization will operate. A vague description can raise red flags for the IRS, leading to questions and potential delays. It is beneficial to provide concrete examples of planned activities.
Moreover, many applicants fail to consider the importance of the organizational structure. The IRS looks for a clear governance structure, including board members and their roles. Not providing this information can create uncertainty about how the organization will function.
Some people also underestimate the significance of addressing potential conflicts of interest. The IRS expects organizations to have policies in place to manage conflicts. Not disclosing these policies can lead to concerns about the organization’s integrity and governance.
Lastly, many applicants do not take the time to review their application thoroughly before submission. A lack of attention to detail can lead to simple mistakes that might have been easily corrected. A final review can help catch errors and ensure that the application is as strong as possible.
The IRS Form 1024 is used to apply for recognition of exemption under Section 501(a) of the Internal Revenue Code. This form is essential for organizations seeking tax-exempt status. Along with Form 1024, several other documents may be required to support the application process. Below is a list of commonly used forms and documents that accompany the IRS 1024.
Submitting these documents along with the IRS Form 1024 can streamline the application process. Ensuring that all necessary paperwork is complete and accurate will increase the likelihood of obtaining tax-exempt status in a timely manner.
The IRS Form 1024 is similar to Form 990, which is the annual information return that tax-exempt organizations must file. Both forms require detailed financial information and organizational structure. Form 990 provides a comprehensive overview of an organization’s activities, governance, and financial health, while Form 1024 focuses on the application for tax-exempt status. Each form helps the IRS assess compliance with tax regulations, but they serve different purposes in the lifecycle of a nonprofit organization.
Another document comparable to Form 1024 is Form 501(c)(3). This form is specifically used by organizations seeking to establish themselves as tax-exempt under section 501(c)(3) of the Internal Revenue Code. While Form 1024 can be used for various types of tax-exempt organizations, Form 501(c)(3) is targeted at charitable organizations. Both forms require similar information regarding the organization’s mission and activities, but Form 501(c)(3) is more specialized in its requirements and benefits.
Form 1023 is also similar to Form 1024, as it is used by organizations applying for 501(c)(3) status. Like Form 1024, Form 1023 gathers information about the organization’s structure and purpose. However, Form 1023 is specifically designed for charitable organizations, whereas Form 1024 can apply to a broader range of nonprofit entities. Both forms share the goal of obtaining tax-exempt status, but they cater to different types of organizations.
Form 990-EZ shares similarities with Form 1024 in that both forms require financial disclosures from nonprofit organizations. Form 990-EZ is a streamlined version of Form 990, used by smaller organizations to report their financial activities. While Form 1024 is focused on the application process, Form 990-EZ is utilized for ongoing compliance. Both forms help the IRS monitor the activities and financial health of tax-exempt organizations.
Form 1024 is also akin to Form 8868, which is an application for an extension of time to file certain tax-exempt organization returns. While Form 1024 initiates the process of obtaining tax-exempt status, Form 8868 allows organizations to request additional time to file necessary documentation, including Forms 990 and 990-EZ. Both forms are essential for maintaining compliance with IRS regulations, though they serve different stages in an organization’s lifecycle.
Form 14781 is another document that has similarities with Form 1024. This form is used by organizations to apply for recognition of exemption under section 501(c)(4). Like Form 1024, it requires detailed information about the organization’s purpose and activities. Both forms are part of the IRS process for determining tax-exempt status, but Form 14781 is specifically aimed at social welfare organizations, highlighting the diverse types of nonprofits that can seek exemption.
Lastly, Form 1024 can be compared to Form 8821, which is used for the tax information authorization. While Form 1024 is focused on establishing tax-exempt status, Form 8821 allows organizations to authorize individuals to receive confidential tax information from the IRS. Both forms facilitate communication and compliance with IRS requirements, but they serve distinct functions within the broader context of tax-exempt organizations.
When filling out the IRS Form 1024, it's essential to approach the process with care. Here are some important dos and don'ts to keep in mind:
The IRS Form 1024 is an important document for organizations seeking recognition of their tax-exempt status under Section 501(a). However, several misconceptions surround this form. Here are six common misunderstandings:
This is not true. While many charitable organizations use Form 1024, it is also applicable to other types of organizations seeking tax-exempt status, including social clubs and business leagues.
Submitting this form does not automatically result in tax-exempt status. The IRS reviews the application and determines whether the organization meets the necessary criteria.
Size does not matter. Any organization seeking tax-exempt status, regardless of its size or revenue, must file Form 1024 if it falls under the appropriate categories.
There are specific timelines for filing. Organizations must file within 27 months of formation to ensure they receive retroactive tax-exempt status.
While certain information is publicly available, not all details are accessible. The IRS protects sensitive information, such as donor lists.
Approval does not mean no further action is needed. Organizations must comply with ongoing reporting requirements and renew their status periodically.
Understanding these misconceptions can help organizations navigate the process of obtaining tax-exempt status more effectively.
When dealing with the IRS Form 1024, it is essential to understand its purpose and the steps involved in completing it. Here are some key takeaways:
Following these steps can streamline the process of applying for tax-exempt status and help ensure a successful outcome.
Free IRS 1024 Template in PDF