Does the IRS Charge A Fee for Applying for An Irs Determination Letter?

Yes. The IRS user fee Form 8718 and the appropriate
fee must be included with your organization?s
Form 1023 or Form 1024 application. The fee ranges
between $150 and $500. (Consult the IRS for details
on the current fee schedule.)

How Does An Organization Obtain An IRS Determination Letter of Exemption?

You must obtain the proper application and related
forms from the IRS (see resource list on page 11).
To apply for Section 501(c)(3) exempt status, you
need to properly complete and file Federal Form
1023. To apply for exempt status under other sections
of the Internal Revenue Code, you generally
need to properly complete and file Federal Form
1024. For general information on Federal tax exemption,
obtain IRS Publication 557. To help ensure
that your organization timely receives the desired
determination, you may want to complete the application
under the guidance of a professional advisor.

Tax Exempt Organization

Tax Exempt Organization: A tax exempt organization is a non-profit organization
that is exemp from certain taxes because it is described under Section 501 of the
Internal Revenue Code. Certain organizations are required to apply to the Internal
Revenue Service for a determination letter that grants them formal tax exemption,
while other organizations are treated as tax exempt as long as they are organized
and operated under an applicable section of the Code.
IRC Section 501(c)(3) Organization: This is an organization that is organized and
operated exclusively for one or more of the following purposes: charitable, religious,
educational, scientific, literary, testing for public safety, fostering national or
international amateur sports competition (but only if none of its activities involve
providing athletic facilities or equipment), or the prevention of cruelty to animals.
To qualify, the organization must be a corporation, community chest, fund, unincorporated
association, or foundation. A trust is a fund or foundation and will qualify.
However, an individual or a partnership will not qualify.
Organizations not required to apply for formal tax exempt status: Some organizations
are treated as tax exempt under IRC Section 501(c)(3) without being required
to file Form 1023, provided they are organized and operated appropriately. These
include:

ï Churches, interchurch organizations of local units of a church, conventions or
associations of churches, or integrated auxiliaries of a church, such as a menís or
womenís organization, religious school, mission society, or youth group.

ï Any organization (other than a private foundation) normally having annual grossreceipts
of not more than $5,000.
Contributions to domestic 501(c)(3) organizations, except organizations testing for
public safety, are generally deductible as charitable contributions on the donorís
federal income tax return.