Not For Profit

Need to file Form 1023, Application for Recognition of Exemption under Section 501(c)(3) of the Internal Revenue Code?

In order to be recognized by the IRS as an exempt organization, prospective 501(c)(3) nonprofits must file this application. It is a complex application that requires numerous documents and attachments, including the Articles of Incorporation (if incorporated) and Bylaws, financial information including forecasts and budgets (if the organization is new), information about the directors and directors, and a complete description of planned exempt activities. The IRS requires certain clauses to be included in the state approved Articles of Incorporation or the Form 1023 will be returned.

Churches are not required to file Form 1023, though it is advantageous to do so for several reasons. The IRS will issue a determination letter of exempt status that can be used to "prove" the tax exempt status to the any donor who inquires. In addition, the name of the approved church will be listed as an Exempt Organization in Publication 78. The exempt list is also accessible online to anyone.

Once you receive exempt status, you must file Form 990.  This is an annual informational return that needs to be filed by charitable / religious / educational nonprofit organizations (churches are exempt from this filing) whose gross receipts average $25,000 or more per year. Late filing penalties are $20 per day up to $10,000 total or $100 per day up to $50,000 total -- so don't be late!

We can file your 1023 and see your 501(c)(3) process through to completion!  We can also prepare and file your form 990.

For a FREE consultation, please contact us at:

480-626-8043 or email us at paul@sundincpa.com