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- 1). Apply for an Employer Identification Number (EIN). The IRS will not accept an application for tax-exempt status until you have an EIN, regardless of whether your organization has any employees. You can get an EIN online from the IRS website, by phone or by mail or fax by filling out and submitting form SS-4 from the IRS website.
- 2). Collect and copy original versions of your organization's organizing documents and all amendments. The IRS requires the articles of incorporation, articles of association, trust indenture and constitution to be submitted with your application for exemption. The IRS will not accept by-laws instead of organizing documents, but it suggests that you send them with your application if you have them.
- 3). Write a description of your organization's past, present and planned activities. This description should include information about all potential fundraising activities for exempt charity organizations and a description of all anticipated receipts and expenditures.
- 4). Prepare financial statements showing your company's receipts and expenditures for the current year and the three previous years. This information is required for your application. If you have not been operating for more than a year, you can submit a proposed budget for two full accounting periods and a current statement of assets and liabilities.
- 5). Determine what kind of exemption you qualify for. The IRS publishes a guide called the Organization Reference Chart that lists specific types of organizations, their tax exemption code and the application forms they must file to obtain exemption.
- 6). Submit the appropriate form to the IRS requesting tax exempt status. You can find which form your organization is required to file on the Organization Reference Chart or in the IRS publication, "Obtaining Tax Exempt Status for Your Organization," which has a separate chapter for most types of tax-exmept organizations. Most tax-exempt organizations have to file either form 1023 or 1024.
- 7). Write a letter to the IRS requesting tax exempt status if no specific application form is prescribed for your organization on the IRS Organization Reference Chart. This letter should be signed by an officer of your organization or someone who has been authorized by the power of attorney. If the latter is the case, include the power of attorney document in the envelope. The letter should also contain a name and contact information for a primary contact person at your organization.
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