How to File Federal Taxes as an Exempt Status

by Contributing Writer

Overview

In order to be able to file federal income taxes as an exempt organization such as a charity, non-profit or religious organization, you must meet certain federal guidelines. The United States Department of Treasury and Internal Revenue Service have created Publication 557 to help you understand the criteria and the application process for becoming a Section 501(a) or 501(c) organization.
Becoming tax exempt

Step 1

Get an exemption. The Internal Revenue Service requires that organizations apply for tax exempt status using Form 1023-Application for Recognition of Exemption Under Section 501(c) of the Internal Revenue Code or Form 1024-Application for Recognition of Exemption Under Section 501(a). Both of these forms include detailed instructions and information about the process.
Step 2

Pay the user fee. The Internal Revenue Service requires organizations pay a user fee at the time of application for tax-exempt organization status. You can find out this amount by calling 1-877-829-5500.
Step 3

Obtain an EIN. If your organization does not already have an Employer Identification Number (EIN), you will need to do so. You may do this online at www.irs.gov, by telephone at 1-800-829-4933 or by mail or fax using Form SS-4.

Prepare your paperwork

Step 1

File all required reports and returns. The IRS requires tax-exempt organizations to file numerous accounting reports and tax returns during the business year. Some of these include information returns, employment tax returns, cash and donor reports. Make sure that you know what paperwork your organization is required to file.
Step 2

Keep complete records. Tax-exempt organizations are required to keep many detailed records that relate to both the overall charitable nature of the organization, it's compliance with federal laws such as anti-discrimination mandates and any solicitations for contributions or charitable donations. You must be prepared to submit this information upon demand.
Step 3

Get help if you need it. The IRS has a Taxpayer Advocacy Service (TAS) to help people and organizations experiencing difficulty with any IRS system or process. You can contact TAS by calling 1-877-777-4778 or 1-800-829-4059.