Form 1024 - Application for Recognition of Exemption Under Section 501(a)

Instructions for Form 1024

Department of the Treasury
Internal Revenue Service

(Rev. September 2016)

Application for Recognition of Exemption Under Section 501(a).
For use with Form 1024.
Section references are to the Internal Revenue
Code unless otherwise noted.

1024, requesting IRS recognition of
exemption under section 501(c)(4).

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

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.

General Instructions

User fee. Submit with the Form 1024
application for a determination letter, a
Form 8718, User Fee for Exempt
Organization Determination Letter
Request, and the user fee called for in the
Form 8718. You may obtain Form 8718,
and additional forms and publications, on
our website at https://www.irs.gov/ or by
calling 1-800-829-3676
(1-800-TAX-FORM). User fees are
subject to change on an annual basis. See
Rev. Proc. 2016-8 (updated annually) for
the current user fee.

Helpful information. For additional
information, see:
Pub. 557, Tax-Exempt Status for Your
Organization;
Pub. 598, Tax on Unrelated Business
Income of Exempt Organizations;
Pub. 578, Tax Information for Private
Foundations and Foundation Managers;
and
Internet site: www.irs.gov/charities.

Purpose of Form

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 file Form 1024 to be
tax-exempt (such as section 501(c)(4)
organizations), 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;
Exemption from certain state;
Advance assurance to donors of
deductibility of contributions (in certain
cases); and
Nonprofit mailing privileges, etc.
Note. Most organizations operating under
section 501(c)(4) are required to notify the
IRS that they are operating under section
501(c)(4) within 60 days of formation by
filing Form 8976 (see Rev. Proc. 2016-41,
IRB 2016-30 I.R.B. 165 at
www.irs.Rev.Proc.2016-41). This
requirement isn’t met by submitting Form
Aug 15, 2016

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.
DON’T file 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.
See Special Rule for Certain
Canadian Organizations on the
following page.
In addition, each organization must
complete the schedule indicated on
page 1 of the application for the section of
the Code under which it seeks recognition
of exemption. (For example, a social
welfare organization seeking recognition
under section 501(c)(4) must complete
Parts I through III and Schedule B.)

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 expedite
processing of the application. Generally,
attachments in the form of tape recordings
aren’t acceptable unless accompanied by
a transcript.

Cat. No. 47909G

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
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.

Generally, if an organization don’t file
its application (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 of
Form 1024.
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.

Private delivery services.

See the instructions for your income tax
return for information on certain private
delivery services designated by the IRS to
meet the “timely mailing as timely filing/
paying rule.”
The private delivery service can tell you
how to get written proof of the mailing
date.
Private delivery services can’t
deliver items to P.O. boxes. You
CAUTION must use the U. S. Postal Service
to mail any item to an IRS P.O. box
address. See the Form 8718 for the P.O.
box address as well as the express mail or
a delivery service address.

!

Where To File

File the completed Form 1024 application,
and all required information, at the
address shown in Form 8718.
The IRS will determine the
organization’s tax-exempt status and
whether any annual returns must be filed.

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.

Appeal Procedures

Your organization’s application will be
considered by the IRS which will either:
1. Issue a favorable determination
letter; or
2. Issue a proposed adverse
determination letter denying the exempt
status requested. If we send your
organization a proposed adverse
determination, we will advise it of its
appeal rights at that time.

Language and Currency
Requirements

Language requirements. Prepare the
Form 1024 and attachments 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.

For 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:
Internal Revenue Service
Ogden Service Center
Ogden, UT 84201-0027
Indicate that an application is pending.
The organization may also be eligible to
file Form 990-N, Electronic Notice
(e-Postcard) available at www.irs.gov.

If an organization has unrelated
business income of more than $1,000, 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.

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:
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 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 the 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
990-EZ.
Form 990-T, Exempt Organization
Business Income Tax Return.
IMPORTANT. Applicants must identify
this information by clearly marking it, “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 may also 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
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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.
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.
An organization that wants recognition
of exemption under section 501(c)(3) must
complete Form 1023, Application for
Recognition of Exemption Under Section
501(c)(3) of the Internal Revenue Code.

Special Rule for Certain
Canadian Organizations

A religious, scientific, literary, educational,
or charitable organization formed in
Canada that has received a Notification of
Registration, from Revenue Canada
(Department of National Revenue,
Taxation) and whose registration hasn’t
been revoked may apply for recognition of
exemption as a social welfare organization
under section 501(c)(4) without
completing all parts of Form 1024 that
would otherwise be required. Such an
organization must complete only Part I and
the signature portion of Form 1024.
To indicate that this special rule
applies, the organization should write
“Registered Canadian Organization”
across the top of page 1 of Form 1024.
The organization must also attach a
copy of its current Notification of
Registration, from Revenue Canada
(Department of National Revenue,
Taxation) and a copy of Application for
Registration, Notification of Registration,
from Revenue Canada, together with all
required attachments that it submitted to
Revenue Canada.
If any of the attachments to Notification
of Registration, Taxation, Application to
Register a Charity Under the Income Tax
Act, were prepared in French, an English
translation must be furnished with Form
1024.
Exemption under section 501(c)(3) is
needed to establish eligibility to receive

contributions that are deductible by U.S.
residents to the extent provided by the
U.S.– Canada tax treaty.

Specific Instructions

The following instructions are keyed to the
line items on the application form:

Part I. Identification of
Applicant Line

Line 1. Full name and address of
organization. Enter the organization’s
name exactly as it appears in its creating
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. See
Form SS-4, Application for Employer
Identification Number, for information on
how to obtain an EIN immediately online
or by mail, if the organization doesn’t have
an EIN. 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
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.

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).

It is also important that you provide
detailed information about the nature and
purpose of each of the activities. The
organization will be contacted for such
information if it isn’t furnished.

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.

Line 2. If it is 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.

Corporation. In the case of a
corporation, a copy of the articles of
incorporation, approved and dated by an
appropriate state official, is sufficient by
itself.
If an unsigned copy of the articles of
incorporation is submitted, it must be
accompanied by the written declaration
discussed above.
Signed or unsigned copies of the
articles of incorporation must be
accompanied by a declaration stating that
the original copy of the articles was filed
with and approved by the state. The date
filed must be specified.
Unincorporated association. In the
case of an unincorporated association, the
conformed copy of the constitution,
articles of association, or other organizing
document must indicate in the document
itself, or in a written declaration, that the
organization was formed by the adoption
of the document by two or more persons.
Bylaws. If the organization has
adopted bylaws, include a current copy.
The bylaws need not be signed if
submitted as an attachment to the Form
1024 application. The bylaws of an
organization alone aren’t an organizing
instrument. They are merely the internal
rules and regulations of the organization.
Trust. In the case of a trust, a copy of
the signed and dated trust instrument
must be furnished.

Part II. Activities and
Operational Information

Line 1. It is important that you report all
activities carried on by the organization to
enable the IRS to make a proper
determination of the organization’s exempt
status.
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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, indicate “N/A.”
Line 5. Indicate 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, indicate
“N/A.”
Line 7. If your organization is a
membership organization, furnish the
requested information. Otherwise, indicate
“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.
Line 13. Examples of public regulatory
bodies are: HUD, HHS, Public Utilities
Commission, Housing Commission, and a
state insurance commission.

Line 14. Provide the specified
information about leased property whether
it is used for exempt functions or for other
purposes.
Line 15. Provide the specified
information about political expenditures
whether they were made to support or to
oppose particular candidates.
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.

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 only for 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.
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.

A. Statement of Revenue and
Expenses

Line 1. Include amounts received from the
members that represent the annual dues

and any special assessments or initiation
fees.
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 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.
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 schedule 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.
Line 6. Include on this line 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 schedule 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 schedule showing
the name of the recipient, a brief
description of the purposes or conditions
of payment, and the amount paid.
Line 12. Attach a schedule 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.
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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,
to the overall management and operation
of the organization.
Line 13. Attach a schedule 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
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 schedule 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 schedule listing the
organization’s corporate stock holdings.
For stock of closely held corporations,
the schedule 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 schedule 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 schedule 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
schedule identifying each.
Line 8. Enter the book value of
buildings and equipment not held for
investment. This includes plant and
equipment used by the organization in
conducting its exempt activities. Attach a
schedule listing these assets held at the
end of the current tax-year period and the
cost or other basis.
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 schedule 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 schedule 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 schedule.
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 only applies 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,” proceed 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
organization a reasonable extension of
time to file a Form 1024 if it submits
evidence to establish that:
(a) It acted reasonably and in good
faith, and
(b) 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.
1. The organization filed its application
before the IRS discovered its failure to file.
2. The organization failed to file
because of intervening events beyond its
control.
3. 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.
4. The organization reasonably relied
upon the written advice of the IRS.
5. 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 cannot rely on the advice of a
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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
must also include the name, current
address, and taxpayer identification
number of the individual making the
affidavit (the affiant). The affiant must also
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
(see above) 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.

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

1. 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;
2. How and when the organization
learned about the 15-month deadline for
filing Form 1024;
3. 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; and
4. 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.

Recordkeeping
53 hr., 5 min.
1 hr., 40 min.
2 hr., 52 min.
1 hr., 40 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.

Comments and suggestions. We
welcome your comments about these
instructions and your suggestions for
future editions. You can send your
comments to us at the following address:
Internal Revenue Service
Tax Forms and Publications Division
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224

Learning about
the law or the
form
2 hr., 17 min.
47 min.
18 min.
18 min.
12 min.
18 min.
18 min.
6 min.
6 min.
6 min.
30 min.
6 min.
6 min.

We respond to many letters by
telephone. Therefore, it would be helpful if
you would include your daytime phone
number, including the area code, in your
correspondence.
You can email us at taxforms@irs.gov.
Please put "Forms Comment" on the
subject line. You can also send us
comments from www.irs.gov/forms-pubs,

-6-

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 Code
section 6104.
The time needed to complete and file
this form will vary depending on individual
circumstances.
The estimated average times are:

Preparing and
sending the form
to the IRS
3 hr., 15 min.
51 min.
21 min.
20 min.
13 min.
22 min.
20 min.
8 min.
7 min.
7 min.
36 min.
8 min.
9 min.

select “Comment on Tax Forms and
Publications” under “Information about.”
Although we can’t respond individually
to each comment received, we do
appreciate your feedback and will
consider your comments as we revise our
tax products.
Don't send your return to this address.
Instead, see General Instructions, Where
To File, earlier.