IRS Revises Form 1024: Application for Exempt Organizations

On January 3, the IRS released Revenue Procedure 2022-8, delineating revisions to Form 1024, Application for Recognition of Exemption Under Section 501(a) or Section 521 of the Internal Revenue Code. 

The most notable change is in requirements surrounding the filing of the form. An organization seeking a determination letter from the IRS recognizing tax-exempt status under Sections 501(c)(2), (5), (6), (7), (8), (9), (10), (11), (12), (13), (14), (15), (16), (17), (18), (19), (21), (22), (23), (25), (26), (27), (28), (29) or § 501(d) must now submit a completed Form 1024 electronically, effective immediately. Organizations seeking a letter recognizing tax-exempt status under Section 521 may also submit electronically.

The IRS has provided a grace period for the transition and had accepted paper versions for 90 days, up until April 4. At this time, all Forms 1024 must be filed and paid for electronically at Pay.gov. The application fee will remain $600 for 2022.

On January 20, 2020, the IRS began to require Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, to be filed electronically. Since then, the agency has noted reduced errors and improved processing time, making the complete application process for those entities seeking tax-exempt status smoother. 

With an IRS priority to continue to improve services for tax-exempt organizations, it believes transitioning the Form 1024 to electronic filing will be as beneficial to applicants as the process has been for those using Form 1023.

The Revenue Procedure also modifies which individuals or representatives (officers, directors, trustees and other officials) are authored to sign the Form 1024, eliminating the option for a paid preparer, authorized by a power of attorney, to sign on behalf of the organization.