IRS Form 8718 – IRS Forms, Instructions, Pubs 2026 – In the world of nonprofit and tax-exempt organizations, navigating IRS requirements can be complex. One key form that often comes into play is IRS Form 8718, which handles the user fee for requesting a determination letter on tax-exempt status. This article provides a comprehensive, up-to-date overview of Form 8718, its purpose, who needs it, current user fees, submission process, and recent updates as of February 2026. Whether you’re starting a new exempt organization or seeking group exemptions, understanding this form is essential for compliance.
What Is IRS Form 8718?
IRS Form 8718, titled “User Fee for Exempt Organization Determination Letter Request,” is not an application for tax-exempt status itself but a required attachment to record payment of the user fee when submitting a determination letter request. It ensures that the IRS processes your application only after receiving the appropriate fee, as mandated by law. The form is primarily used by organizations applying for recognition of exemption under sections 501 or 521 of the Internal Revenue Code (IRC), excluding certain pension plans.
Key elements of the form include:
- Organization Details: Name and Employer Identification Number (EIN).
- Type of Request: Checkboxes for individual exemptions (under IRC §501 or §521) or group exemption letters.
- Fee Entry: Space to enter the applicable user fee amount.
- IRS Use Only Section: For internal processing, such as control numbers and fee screening.
The form’s revision date is November 2021, and it remains current as of February 2026 with no major changes reported. For the latest version, download it from the IRS website at https://www.irs.gov/pub/irs-pdf/f8718.pdf.
Who Needs to File IRS Form 8718?
Form 8718 is required for organizations seeking a determination letter from the IRS on their tax-exempt status, but it’s not needed for all applications. Specifically:
- Organizations Applying for Exemption Under IRC §501 or §521: This includes most nonprofits, such as charities, religious groups, and farmers’ cooperatives (excluding pension, profit-sharing, or stock bonus plans under §401, which use Form 8717 instead).
- Group Exemption Requests: Central organizations applying for a group ruling to cover multiple subordinate entities.
- Exceptions: Organizations filing electronically via Form 1023, Form 1023-EZ, or Form 1024-A pay fees directly through Pay.gov and do not need Form 8718.
If your organization is reinstating after automatic revocation or seeking miscellaneous determinations (e.g., private foundation reclassification), you may also need to attach Form 8718 to Form 8940. Always check the specific application instructions to confirm.
Current User Fees for Exempt Organization Determination Letters (2026)
User fees are required under IRC §7528 and are outlined in Revenue Procedure 2026-5 (and prior versions like 2023-5 for historical context). These fees support IRS processing and are non-refundable in most cases, except if the IRS declines to issue a determination or if the application is incomplete and returned. Fees remain largely unchanged from 2025.
Here’s a summary of key user fees as of February 2026:
| Type of Request | Form Used | User Fee Amount |
|---|---|---|
| Recognition of exemption under §501(c)(3) (standard) | Form 1023 | $600 |
| Recognition of exemption under §501(c)(3) (streamlined) | Form 1023-EZ | $275 |
| Recognition of exemption under other §501 sections or §521 | Form 1024 | $600 |
| Application for §501(c)(4) organizations | Form 1024-A | $600 |
| Group exemption letters | Form 8940 (with attachments) | $3,500 |
| Reclassification of private foundation status | Form 8940 | $600 |
| Advance approval for set-asides (§4942(g)(2)), grant-making (§4945), or voter registration (§4945(f)) | Form 8940 | $3,500 each |
| Unusual grants determination | Form 8940 | $600 |
| Other miscellaneous determinations (e.g., filing requirements under §6033) | Form 8940 | $600 |
Note: For group exemptions, the IRS resumed accepting applications on January 20, 2026, after a pause since 2020. Central organizations must have at least five subordinates to apply and one to maintain the letter. Fees for electronic submissions (e.g., Form 1023) are paid via Pay.gov; others require a check or money order payable to “United States Treasury.”
Certain exemptions from fees apply, such as for government entities or confirmation of lost exemption letters.
How to Fill Out and Submit IRS Form 8718?
Filling out Form 8718 is straightforward:
- Enter Organization Info: Provide the name and EIN.
- Select Request Type: Check box “a” for individual exemptions under §501 or §521, or “b” for group exemptions. Enter the fee amount.
- Attach Payment: Include a check or money order for the full fee.
- Attach to Application: Submit with your determination letter request (e.g., Form 1024 or 8940).
Submission Address: Mail to Internal Revenue Service, TE/GE Stop 31A Team 105, P.O. Box 12192, Covington, KY 41012-0192. For electronic forms like 1023, pay directly online without Form 8718.
If the fee is incorrect or missing, the IRS will return your application unprocessed. Processing times vary, but expect several months for determination letters.
Recent Updates and Changes for 2026
As of February 2026, IRS Form 8718 has no structural changes since its 2021 revision. However, key developments include:
- Group Exemption Resumption: The IRS resumed issuing group exemption letters on January 20, 2026, under Rev. Proc. 2026-8, with new requirements like electronic submission via Form 8940 and a $3,500 fee. Existing group holders have until January 22, 2027, to comply with updates.
- Revenue Procedure Updates: Rev. Proc. 2026-5 clarifies procedures for determination letters, including user fees and appellate review exceptions. It also addresses group rulings per Notice 2020-36.
- No Fee Increases: User fees are stable, with no changes from 2025 levels.
For the most current information, visit IRS.gov or consult Rev. Proc. 2026-5.
Tips for SEO-Optimized Compliance and Best Practices
To ensure your exempt organization determination letter request succeeds:
- Obtain an EIN before applying.
- Review Rev. Proc. 2026-5 for detailed guidance.
- Consider consulting a tax professional for complex cases, like group exemptions.
- Keep records, as the Paperwork Reduction Act requires retention for tax law enforcement.
By properly using IRS Form 8718 and paying the correct user fee, your organization can secure its tax-exempt status efficiently. Stay informed through official IRS channels to avoid delays.