Filing With Tax Exempt Status Pending
So you’ve successfully defined your organization’s mission, recruited your board members, drafted and filed your corporate documents and even solicited your first donation. Just prior to the filing deadline of your first Form 990 “Return of Organization Exempt from Income Tax,” you remember to file Form 1023 “Application for Recognition of Exemption Under Section 501(c) (3)” to receive a determination letter from the IRS recognizing your charitable exempt status. Since you haven’t received a determination letter from the IRS yet…
WHAT IS YOUR FILING REQUIREMENT?
If an annual information return is due while the organization’s application for recognition of exempt status is pending with the IRS (including any appeal of a proposed adverse determination), the organization should file Form 990 or Form 990-EZ and must check the “Application Pending” checkbox whether or not Form 1023 (or Form 1024) has been filed to indicate that Form 990 is being filed in the belief that the organization is exempt under Section 501(a), but that the IRS has not yet recognized such exemption.
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To ensure compliance with U.S. Treasury rules, unless expressly stated otherwise, any U.S. tax advice contained in this communication is not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.
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