IRS Instruction 1023 – IRS Form, Instructions, Pubs 2026)

IRS Instruction 1023 – If you’re forming a nonprofit and want donors to receive tax-deductible contributions, you need IRS recognition of exemption under Section 501(c)(3). For most organizations, that means filing Form 1023 and following the official IRS Instructions for Form 1023 (Rev. December 2024).

This SEO-optimized guide breaks down everything from the latest requirements and user fee to a part-by-part walkthrough, required attachments, processing timelines, and pro tips to avoid delays. All information comes directly from the current IRS instructions and official pages (as of February 2026).

What Is Form 1023 and Why Do You Need It?

Form 1023 is the Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code. When approved, the IRS issues a determination letter confirming:

  • Tax-exempt status
  • Eligibility for tax-deductible contributions
  • Public charity or private foundation classification
  • Annual filing requirements (Form 990, 990-EZ, 990-PF, or 990-N)

Most new 501(c)(3) organizations must file Form 1023 (or the streamlined Form 1023-EZ if eligible). Churches, their integrated auxiliaries, and very small organizations (normally ≤ $5,000 gross receipts) are generally excepted from filing but often file anyway to obtain the official letter.

Form 1023 vs. Form 1023-EZ: Which One Should You Use?

Use Form 1023-EZ (3-page streamlined version) only if your organization meets all of these criteria:

  • Projected annual gross receipts ≤ $50,000
  • Total assets ≤ $250,000
  • Not a private foundation, supporting organization, church, school, hospital, or certain other complex entities

Complete the Form 1023-EZ Eligibility Worksheet (in the Instructions for Form 1023-EZ) before deciding. If you answer “Yes” to any disqualification question, you must use the full Form 1023.

Current User Fee (2025–2026)

  • Form 1023: $600
  • Form 1023-EZ: $275

The fee is paid electronically through Pay.gov at the time of filing and is non-refundable. Fees are subject to annual adjustment; always confirm the exact amount on Pay.gov or by calling 877-829-5500.

How to File Form 1023 (Step-by-Step)?

Since January 31, 2020, electronic filing via Pay.gov is mandatory. Paper applications are no longer accepted.

  1. Obtain an Employer Identification Number (EIN) (free online).
  2. Prepare your organizing document (articles of incorporation, trust, or association document) with the required 501(c)(3) purpose and dissolution clauses.
  3. Download the latest Instructions for Form 1023 (Rev. December 2024) → https://www.irs.gov/pub/irs-pdf/i1023.pdf
  4. Register for a Pay.gov account.
  5. Search for “Form 1023” on Pay.gov and start the online application.
  6. Complete all parts, upload a single consolidated PDF of attachments (max 15 MB recommended), and pay the $600 fee.
  7. An authorized officer, director, or trustee must digitally sign the form.

Tip: Consolidate everything (organizing document, bylaws, supplemental responses, Form 2848 if using a representative) into one PDF before uploading. Label each page with your name and EIN.

Detailed Breakdown of Form 1023 (Based on Rev. December 2024 Instructions)

Part I – Identification of Applicant
Legal name, address, EIN, tax year, contact person, website, and list of officers/directors/trustees.

Part II – Organizational Structure
Corporation, LLC, unincorporated association, or trust? Attach organizing document and any amendments. State formation date and bylaws (if adopted).

Part III – Required Provisions in Organizing Document
Must include:

  • Purpose clause limited to 501(c)(3) exempt purposes (charitable, religious, educational, scientific, etc.)
  • Dissolution clause dedicating assets to another 501(c)(3) organization or government

Part IV – Your Activities (the most important narrative section)
Provide a complete, detailed description of past, present, and planned activities. Include who, what, where, when, how funded, and how they further exempt purposes. Select your NTEE code (Appendix D). Answer questions on political activity, lobbying, foreign activities, gaming, etc.

Part V – Compensation and Other Financial Arrangements
Detail compensation for officers/directors, highest-paid employees/contractors (> $100,000), conflict-of-interest policy (sample in Appendix A), related-party transactions, leases, loans, etc.

Part VI – Financial Data
Statement of Revenues and Expenses (actual for completed years + projections) and Balance Sheet. Report in U.S. dollars.

Part VII – Foundation Classification
Public charity (church, school, hospital, public support test) or private foundation.

Part VIII – Effective Date
File within 27 months of formation → exemption is retroactive to formation date.

Part IX – Annual Filing Requirement
Confirm you understand Form 990/990-EZ/990-PF or 990-N obligations.

Part X – Signature
Digital signature by an authorized person.

Required Schedules (Complete Only If Applicable)

  • Schedule A – Churches
  • Schedule B – Schools, colleges, universities (includes racially nondiscriminatory policy)
  • Schedule C – Hospitals and medical research organizations
  • Schedule D – Section 509(a)(3) supporting organizations
  • Schedule E – Effective date (for late filings or reinstatement)
  • Schedule F – Low-income housing
  • Schedule G – Successors to other organizations
  • Schedule H – Scholarships, fellowships, grants to individuals (and advance approval for private foundations)

Processing Time and Status Check

As of early 2026:

  • 80% of Form 1023 applications receive a determination within 191 days (roughly 6–7 months) for filings submitted on or before September 8, 2025.
  • Newer applications may take longer; the IRS posts updated timelines on the “Where’s My Application?” page.

You can check status at: https://www.irs.gov/charities-non-profits/charitable-organizations/wheres-my-application-for-tax-exempt-status

While pending, continue to file required annual returns (mark “Application Pending”).

Top Tips to Avoid Delays and Common Mistakes

  • Answer every question completely — vague or incomplete narratives are the #1 reason for requests for additional information.
  • Make sure financial data matches the activities described.
  • Include a strong conflict-of-interest policy (use the sample in Appendix A).
  • Do not include Social Security numbers anywhere (the entire application is subject to public disclosure).
  • For schools: maintain records of racially nondiscriminatory policy compliance for at least 3 years.
  • Request expedited processing in writing only for compelling reasons (pending grant that will be lost, disaster relief, etc.).

Official Resources (Always Use the Latest Versions)

Final Thoughts

Filing Form 1023 is a significant but manageable step toward legitimate 501(c)(3) status. The December 2024 instructions are clear, continuous-use, and emphasize electronic filing through Pay.gov. By following the official IRS guidance, preparing a detailed narrative, and organizing your attachments properly, you greatly improve your chances of a smooth approval.

Ready to start?
Download the latest instructions here: https://www.irs.gov/pub/irs-pdf/i1023.pdf
Then head to Pay.gov and search for “Form 1023.”

Need professional help? Consider a tax attorney or CPA experienced in exempt organizations, especially for complex structures, supporting organizations, or private foundations.

This guide is for informational purposes only and is not a substitute for professional tax or legal advice. Always consult the official IRS instructions and current revenue procedures for the most accurate requirements.