Hunton Law

Legal Counsel for Nonprofit & Tax-Exempt Organizations

Legal Counsel for Nonprofits, Foundations & Social Enterprises

IRS Posts Additional Instructions to Help 501(c)(3) Applicants

For many 501(c)(3) applicants, completing the IRS Form 1023 (application for federal tax exemption) can be a time-consuming endeavor involving guesswork as to the type of explanation and level of detail expected by the IRS reviewers.  In an effort to reduce the amount of such guesswork and to clarify their expectations for what constitutes an acceptable and complete response to various portions of the 1023, the IRS recently posted on its website information that all applicants should review in conjunction with the IRS Form 1023 Instructions (last revised June 2006).  Although the IRS has not provided (and probably never will provide) a “model template” for a completed Form 1023 application, the information posted on the IRS website provides helpful guidance to applicants and their advisors who wish to submit an application that has the greatest chance of being processed quickly by the IRS and obtaining a favorable determination letter of tax-exempt status.