An organization that files an application after this deadline may be recognized as tax-exempt from the date of the application; it may also request exemption effective back to the date of creation by completing Schedule E, Form 1023, and checking the Yes box in Question 5 of that schedule. A request will be approved if the organization acted reasonably and in good faith, and granting relief will not prejudice the interests of the government. For more information on the criteria for relief, see Income Tax Regulation 301.9100-1.
Note: An organization that files Form 1023 late may also be recognized as a tax-exempt social welfare organization under Code section 501(c)(4), by checking the box in Question 8 of Schedule E. This provides exemption from federal income tax but does not generally permit deductibility of contributions under Code section 170.
Last update: November 2, 2007
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