Form 1023: Purpose of Questions About Organization Applying More than 27 Months After Date of Formation

 


Why does Form 1023 ask for information about an organization applying more than 27 months after the month it was legally formed?

In general, an organization must file its exemption application within 27 months from the end of the month in which it was formed.  If it does so, it may be recognized as exempt back to the date of formation.  If an organization files its exemption application after the 27-month deadline, exempt status may only be recognized from the filing date forward.

Exceptions to this general rule may apply.  If an organization answers no to Line 1, Part VIII, indicating that it filed late (including an organization whose tax-exempt status was automatically revoked), it is directed to Schedule E, which asks questions about automatic revocation of exempt status and whether the organization wants to request an earlier effective date than the submission date.