Alert

Not-for-Profits Must File Form 1024 Electronically for Tax-Exemption Status

Steve Talbot, Senior Manager, Not-for-Profit Practice

February 6, 2022
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The IRS now requires electronic filing of Form 1024, Application for Recognition of Exemption under Section 501(a) or Section 521 of the Internal Revenue Code. Some tax-exempt organizations that were previously able to request exemption through a letter application must now also use Form 1024.

The IRS is allowing a grace period for organizations to file a paper version of Form 1024. After April 4, 2022, Form 1024 must be submitted online via Pay.gov.

Organizations Affected Under Section 521

Organizations seeking determination under Section 521 will now use Form 1024 instead of Form 1028, Application for Recognition of Exemption Under Section 521 of the Internal Revenue Code.

Organizations Affected Under Section 501

Organizations seeking exemption under the following 501(c) code sections must now use Form 1024 instead of a letter application:

  • 501(c)(11) Teachers’ Retirement Fund Associations
  • 501(c)(14) State-Chartered Credit Unions, Mutual Reserve Funds
  • 501(c)(16) Cooperative Organizations to Finance Crop Operations
  • 501(c)(21) Black Lung Benefit Trusts
  • 501(c)(22) Withdrawal Liability Payment Funds
  • 501(c)(26) State-Sponsored Organizations Providing Health Coverage to High-Risk Individuals
  • 501(c)(27) State-Sponsored Workers’ Compensation Reinsurance Organizations
  • 501(c)(28) National Railroad Retirement Investment Trust
  • 501(c)(29) Qualified Nonprofit Health Insurance Issuers
  • 501(d) Religious and Apostolic Associations

With these changes, all organizations described in Section 501(c) and 501(d) will use Form 1024 to apply for tax-exempt status, except for Section 501(c)(3) and 501(c)(4) organizations.

Section 501(c)(3) organizations use Form 1023 or Form 1023-EZ, and Section 501(c)(4) organizations use Form 1024-A. These forms also must be electronically filed via Pay.gov.

2022 User Fee with Form 1024

The user fee for Form 1024 will remain $600 for 2022, and applicants can pay the fee through Pay.gov when submitting their forms.

We’re Here to Help

To learn more about Form 1024 and how not-for-profits can apply for tax-exempt status, contact your Moss Adams professional.

You can also learn more about our Not-for-Profit Practice and additional topics affecting the industry.

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