What is 501c3 applicationstatus ? Usually what people refer to are organizations who have applied and recognized by the IRS as a tax exemption under section 501 ( c) (3 ) of the IRS Code. (26 IRS § 501 ( c) (3 ) )
People who use terms incorrectly 5013C or 503c1 . As you know , these descriptions or names are correct . The term " 501c3 application" comes from the section of the IRS code. Section 501c3 application of the IRS code identifies the purpose for which an organization may be organized and operated in order to qualify for federal tax exemption .
Here's an excerpt from the IRC 501 ( c) (3 ) :
Corporations, and any community chest , fund, or foundation, organized and operated exclusively for religious , charitable, scientific, testing for public safety , literary , or educational purposes, or to foster national or international amateur competition sport ( but only if no part of its activities include the provision of facilities and sports equipment) , or for the prevention of cruelty to children or animals , no part of the net income that favor of a shareholder or individual is cured , no substantial part of the activities of which are carried out propaganda, or otherwise attempting to influence legislation ( except as otherwise provided in subsection ( h ) ) , and which are not , or intervene in (including the publishing or distribution of statements) , any political campaign on behalf of ( or in opposition to ) any candidate for public office .Organizations with objectives mentioned above are by far , the type of tax exempt organization most commonly accepted . In fact, in 2010 , approximately 65 % of trusts and tax -exempt organizations contained in the master file were 501c3 application IRS tax-exempt organizations .
How can an organization obtain 501c3 application status ?
To apply for 501c3 application tax-exempt status applicant must complete and file IRS Form 1023 . In technical terms , the Form 1023 is the form required by the IRS for " Application for Recognition of Exemption under Section 501 ( c) (3 ) of the Internal Revenue Code . " Form 1023 consists of 11 rooms, 26 pages, and usually requires a right to use between $ 400 - $ 850 for applying .Form 1023 was last revised in June 2006 , almost. Additional updates have been made to the Form 1023 IRS 1382 Examination in November 2010 . One of the original hopes for the IRS Form 1023 was revised as more detailed and substantial questions on how to prevent or reduce the amount of correspondence between the applicant and the IRS 501c3 application and result in faster processing of IRS .
How long will it take for the IRS to process a 501c3 application?
This is a very common question that candidates who spend weeks or months to prepare the IRS Form 1023 for recognition of tax exemption . Candidates often mistakenly believe that once you submit IRS Form 1023 to the IRS to get a response and the tax exemption will be granted within months . Unfortunately , the process of recognition of tax-exempt IRS may take longer .The exact amount of time depends on the IRS. Some factors that can affect the processing time of a request by the IRS include : the type of waiver request client sends the integrity of the application , and the current workload of the authors of the IRS.