What Is a 501c3 Form? How to File 1023 for Tax Exemption

The “501c3 form” is IRS Form 1023, or its shorter version Form 1023-EZ, the application a nonprofit files to be recognized as tax-exempt under Section 501(c)(3) of the Internal Revenue Code. Without filing it, the IRS will not treat your organization as tax-exempt and your donors cannot deduct their contributions.¹ You submit it electronically through Pay.gov with a user fee and supporting documents, and the IRS responds with a determination letter confirming your status.

Which Version You File: 1023 or 1023-EZ

The IRS offers two versions, and your size decides which one you can use.

Form 1023-EZ is the streamlined application. To use it, your annual gross receipts must not have exceeded and must not be projected to exceed $50,000 in any of the past or next three years, and your total assets must not exceed $250,000. You also have to answer “No” to every question on the Form 1023-EZ Eligibility Worksheet.² The form is mostly checkboxes attesting that you meet the legal requirements. The user fee is $275.³

If you exceed the thresholds or answer “Yes” to anything on the eligibility worksheet, you file the full Form 1023. It requires a written narrative of your past, present, and planned activities, an explanation of how each furthers your exempt purpose, and detail on fundraising, compensation, and any lobbying.⁴ The user fee is $600.³

What to Gather Before You Start

Employer Identification Number

You need an EIN before filing, even if you have no employees. Apply on Form SS-4; the online application issues the number immediately.⁵

Articles of Incorporation With the Right Language

Your state formation document, typically Articles of Incorporation for a corporation or Articles of Organization for an LLC, has to contain two clauses or the IRS will reject the application on the organizational test.⁶

A purpose clause must limit the organization’s activities to purposes recognized under 501(c)(3), such as charitable, educational, religious, or scientific work. It cannot authorize political campaign activity or devote more than a minor part of the organization’s work to lobbying. A dissolution clause must state that on shutdown any remaining assets go to another 501(c)(3), to another tax-exempt purpose, or to a federal, state, or local government for a public purpose. Articles that let assets go to members or shareholders will fail.

The prohibition on political campaign activity is absolute. A 501(c)(3) cannot support or oppose any candidate for public office through contributions, statements on behalf of the organization, or any other campaign involvement, and violations can cost you the exemption and trigger excise taxes.⁷

Financial Information

How much you provide depends on your age:⁸

Less than one year old: projected revenue and expenses for the current year and the next two, based on a good faith estimate.
One to four years old: actual figures for each completed year plus projections to reach at least four years total.
Five or more years old: actual figures for your five most recently completed tax years.⁴

Break out sources of revenue (grants, donations, membership fees, program income) and categories of expense (program costs, fundraising, administrative overhead).

Officers, Directors, and Trustees

List the full names, titles, and mailing addresses of everyone in these roles. You can use the organization’s address rather than personal ones. The form asks whether any of them are compensated and by how much, and it wants detail on financial relationships between these individuals and the organization. A written conflict of interest policy is not required to obtain exemption, but the IRS recommends adopting one and provides a sample in the Form 1023 instructions.⁴

Public Charity or Private Foundation

Every 501(c)(3) is one or the other, and the form asks you to say which. If you don’t establish public charity status, the IRS presumes you are a private foundation by default.⁹ Public charities draw support from a broad base of donors, government, and program revenue; private foundations typically receive most funding from a small number of large donors and face stricter rules including excise taxes and required minimum distributions.¹⁰ Decide which classification you are claiming before you start the form.

The 27-Month Filing Deadline

File within 27 months of the end of the month in which you formed, and the IRS will generally make your exempt status effective back to your formation date.¹¹ File after that window and your exemption typically starts on the date the IRS receives the application, meaning any donations or income before that date may not qualify for tax-exempt treatment.

Submitting Through Pay.gov

Both forms are filed electronically through Pay.gov. Paper applications are not accepted.⁴

Create a Pay.gov account and search for “1023” or “1023-EZ.”
Fill in the form directly in the portal. For Form 1023, upload your articles of incorporation, bylaws, financial statements, and any other attachments as a single PDF. The upload cap is 15 megabytes, so consolidate everything into one file before uploading.
Pay the non-refundable user fee ($600 for 1023, $275 for 1023-EZ) by credit card or bank transfer at submission.
Save the confirmation receipt, tracking number, and a copy of the complete submitted application.

How Long the IRS Takes

After submission, a revenue agent reviews your file and may write requesting more information or clarification. If everything checks out, the IRS issues a determination letter, which is the official document you show banks, grantors, and donors.

As of early 2026, the IRS reports issuing 80% of Form 1023-EZ determinations within about 22 days, and 80% of Form 1023 determinations within about 191 days (roughly six and a half months). Applications flagged for additional review take longer; the IRS reports resolving 80% of 1023-EZ applications needing further review within 120 days.¹²

If the IRS Proposes to Deny You

A proposed adverse determination letter explains the reasons and your appeal rights.¹³ You have 30 days from the date of that letter to file a written protest, which should include:

Your organization’s name, address, and EIN.
A statement of the facts, law, and arguments supporting your position.
Whether you want a conference with the IRS Independent Office of Appeals.
The signature of an authorized officer, director, or trustee.

Miss the 30-day window and the proposed denial becomes final.

Who Doesn’t Have to File

Federal law requires organizations formed after October 9, 1969 to notify the IRS before it will recognize exemption.⁹ Two categories are excused. Churches, their integrated auxiliaries, and conventions or associations of churches are not required to file, though many do so anyway to have a determination letter on hand. Organizations that are not private foundations and have annual gross receipts normally at or below $5,000 are also excused. Everyone else pursuing 501(c)(3) status has to file.¹⁴

After You’re Approved

Approval is not the finish line. Every 501(c)(3) must file an annual information return, and three consecutive years of not filing triggers automatic revocation.¹⁵ Which return you file depends on size:¹⁶

Form 990-N (e-Postcard) for annual gross receipts of $50,000 or less.
Form 990-EZ for gross receipts under $200,000 and total assets under $500,000.
Form 990 for gross receipts of $200,000 or more, or total assets of $500,000 or more.

If you earn $1,000 or more from activities unrelated to your exempt purpose, you also file Form 990-T and may owe unrelated business income tax.¹⁷

If your status is automatically revoked, you apply for reinstatement by filing a new Form 1023 or 1023-EZ with the applicable fee. Apply within 15 months of the revocation date and meet certain conditions, and the IRS may reinstate you retroactively to the revocation date. Apply later and retroactive relief generally requires showing reasonable cause for the failure to file.¹⁸

Your approved application and determination letter must be made available for public inspection and copying on request, and the IRS also publishes them. This disclosure obligation does not expire.¹⁹

State Registration Is Separate

Federal exemption does not satisfy state law. About 40 states require charitable organizations to register with a state agency before soliciting donations from their residents, with registration fees and renewal deadlines that vary widely.²⁰ Some states also require a separate application for state income tax exemption; others accept your federal determination letter automatically. Check with your state’s attorney general or secretary of state before soliciting donations.

1
Internal Revenue Service. Application for Recognition of Exemption
2
Internal Revenue Service. Instructions for Form 1023-EZ (Rev. January 2025)
3
Internal Revenue Service. Form 1023 and 1023-EZ: Amount of User Fee
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Internal Revenue Service. Instructions for Form 1023 (Rev. December 2024)
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Internal Revenue Service. About Form SS-4, Application for Employer Identification Number (EIN)
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eCFR. 26 CFR 1.501(c)(3)-1
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Internal Revenue Service. Restriction of Political Campaign Intervention by Section 501(c)(3) Tax-Exempt Organizations
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Internal Revenue Service. Form 1023: Tax Periods for Which Statement of Revenue and Expenses Is Required
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Office of the Law Revision Counsel. 26 USC 508
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Internal Revenue Service. Determine Your Foundation Classification
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Internal Revenue Service. Exemption Application: When to File (Section 501(c)(3))
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Internal Revenue Service. Where’s My Application for Tax-Exempt Status?
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Internal Revenue Service. Instructions for Form 1023 (12/2024)
14
Office of the Law Revision Counsel. 26 USC 501
15
Internal Revenue Service. Automatic Revocation of Exemption
16
Internal Revenue Service. 2025 Instructions for Form 990
17
Internal Revenue Service. Unrelated Business Income Tax
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Internal Revenue Service. Automatic Revocation – How to Have Your Tax-Exempt Status Reinstated
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Internal Revenue Service. Public Disclosure of Determination Letters
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Internal Revenue Service. Charitable Solicitation – Initial State Registration