Form 1023 is an application filed with the IRS by organizations seeking tax-exempt status, such as nonprofits and charities, allowing them to receive tax-deductible donations.
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Last Updated: February 10, 2026
Form 1023 is a tax form that non-profit organizations file to get exemption status. If the Internal Revenue Service (IRS) accepts the application, the organization is exempt from paying federal income tax. This guide explains the essential details about Form 1023, including what it is, the benefits of getting tax-exempt status, what’s needed to file it, and more.
The IRS’s Form 1023 is an application for recognition as a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code (IRC). Businesses that get this exempt status are often referred to as “non-profits” or “501(c)(3)s.”
There are quite a few benefits to using Form 1023 to apply for 501(c)(3) status because that status has its own benefits. First, a tax-exempt organization doesn’t have to pay federal income tax or federal unemployment tax. A non-profit may also be exempt from state income, sales, and employment taxes. Second, contributions to the organization are tax-deductible. This incentivizes donors, which, hopefully, leads to more funding for the organization’s efforts. Lastly, 501(c)(3)s also benefit from reduced postal rates.
The IRS has many requirements for businesses using Form 1023 to apply for 501(c)(3) status. For example, the organization applying must:
When completing Form 1023, the filer needs to include financial data, organizing documents (e.g., Articles of Incorporation), and information about past and present business activity. For all of the details on Form 1023 requirements, it’s prudent to read through the Instructions for Form 1023. If a business owner wants their organization to be tax-exempt from the day it’s started, they have to submit the application within 27 months of the end of the first month when the organization was created.
The IRS no longer accepts paper applications, so Form 1023 needs to be filed electronically. There’s a streamlined version of the application (Form 1023-EZ), but not all organizations are eligible for the streamlined version.
Certain organizations aren’t required to file Form 1023 and are automatically considered tax-exempt. These include religious establishments (e.g., churches, synagogues, associations of churches, etc.) and any organization whose gross receipts during the year typically don’t exceed $5,000.
Form 1023 is what a nonprofit typically files with the IRS to become a 501(c)(3) tax-exempt organization. Once the IRS grants an organization tax-exempt status, it’s important to keep up with the mandatory annual filing requirements, which include Form 990 or Form 990-EZ. If the organization fails to do so, it could lose its exempt status.
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Before applying for 501(c)(3) tax-exempt status, an entrepreneur has to actually start a business. This includes forming an entity under state law, appointing a registered agent, and getting an EIN. ZenBusiness can assist with all of those things and more! They offer LLC and corporation formation services, and they can even help entrepreneurs request an EIN and get a registered agent. Check out all of the products and services they offer.
Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. For specific questions about any of these topics, seek the counsel of a licensed professional.
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