IRS Form 1023
To apply for tax-exempt status, you must complete IRS Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code.

What is required for an organization to qualify for tax-exempt status?

To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual.

Can companies be tax-exempt?

Tax-exempt organizations do not have to pay federal income taxes when they buy or sell items. For tax-exempt eligibility, the organization’s purpose must not be to generate profit. Though you may be tax exempt from federal income taxes, you might have to pay state and local taxes.

How to apply for tax exempt status online?

Once you have followed the steps outlined on this page, you will need to determine what type of tax-exempt status you want. Note: As of January 31, the IRS requires that Form 1023 applications for recognition of exemption be submitted electronically online at For more information, please refer to the Form 1023 product page.

What do you need to know about tax exempt status?

Federal law governs tax-exempt status. The Internal Revenue Code specifically refers to exemption from federal income tax. Below are the steps you need to take before you can apply for tax-exempt status: Gather your organization documents.

How does a nonprofit apply for tax exempt status?

Tax-exempt status from the IRS will allow contributions made to charitable organizations by individuals and corporations to be deductible under Code section 170. Additionally, state tax-exempt status will save money when purchasing goods and services for use by the organization. How does a nonprofit apply for tax-exempt status?

How to apply for an exempt organization certificate?

File Form ST-119.2, Application for an Exempt Organization Certificate Submit the required documentation described in the Instructions for Form ST-119.2 Provide a copy of your 501 (c) (3) determination letter when applying (if your organization applied for and received federal income tax exemption from the IRS)