Non-Profits: Electronic Filing of Form 1024

Starting January 3, 2022, nonprofit organizations applying for recognition of exemption must submit Form 1024, Application for Recognition of Exemption Under Section 501(a) or Section 521 of the Internal Revenue Code, electronically online at Pay.gov. Form 1024, which was previously filed using a paper version, has been revised by the IRS to allow electronic filing. There is, however, a 90-day grace period during which the IRS will continue to accept paper versions of Form 1024 (Rev. 01-2018) and letter applications.

The revised Form 1024 is part of the IRS’s ongoing efforts to improve service for the tax-exempt community and make it easier to complete an application for tax-exempt status while reducing errors and reducing processing time. Electronic filing will also shorten the time it takes the IRS to process these forms.

Organizations requesting determinations under Section 521 are now also able to use the electronic Form 1024 instead of Form 1028, Application for Recognition of Exemption Under Section 521 of the Internal Revenue Code.

The required user fee for Form 1024 remains $600 for 2022. Applicants must pay the fee through Pay.gov when submitting the form, and payment can be made directly from a bank account or by credit or debit card.

In addition, applications for recognition of exemption under Sections 501(c)(11), (14), (16), (18), (21), (22), (23), (26), (27), (28), (29) and 501(d) can no longer be submitted as letter applications. Instead, these requests must be made on the electronic Form 1024.

Accordingly, organizations that are described in Section 501(c) (other than 501(c)(3) and (c)(4)) and 501(d) applying for tax-exempt status must now use the electronic Form 1024. Section 501(c)(3) organizations must continue to use Form 1023 or Form 1023-EZ, and Section 501(c)(4) organizations must continue to use Form 1024-A. Those forms also must be filed electronically.

Please contact the office if you need assistance applying for IRS recognition of tax-exempt status or have any other questions about applying for tax-exempt status.