Lifecycle of an exempt organization

Organizations that meet the requirements of Internal Revenue Code section 501(a) are exempt from federal income taxation. In addition, charitable contributions made to some section 501(a) organizations by individuals and corporations are deductible under Code section 170.

This website provides information about points of intersection between organizations and the IRS. The content includes explanatory information, and links to forms that an organization may need to file with the IRS. The materials cover five stages in an organization's life cycle:

1. Starting Out: Creating an organization under state law, acquiring an employer identification number, and identifying the appropriate federal tax classification.
2. Applying for Exemption:  Acquiring, completing, and submitting application forms; how the IRS processes applications; and getting help from the IRS during the application process.
3. Required Filings:  Annual exempt organization returns, unrelated business income tax filings, Form 8976 – Notice of Intent to Operate Under Section 501(c)(4), and other returns, reports and notices that an organization may have to file.
4. Ongoing Compliance:  How an organization can avoid jeopardizing its tax-exempt status, disclosure requirements, employment taxes, and other ongoing compliance issues.
5. Significant Events:  Audits, private letter rulings, and termination procedures.

Lifecycle pages — including requirements for exemption — are available for the following types of organizations:

• Charitable organizations (Code section 501(c)(3))
  • Public charities
  • Private foundations
• Social welfare organizations (section 501(c)(4))
• Agricultural/horticultural organizations (section 501(c)(5))
• Labor organizations (section 501(c)(5))
• Business leagues (trade associations) (section 501(c)(6))