Does the IRS Charge A Fee for Applying for An Irs Determination Letter?

Yes. The IRS user fee Form 8718 and the appropriate
fee must be included with your organization?s
Form 1023 or Form 1024 application. The fee ranges
between $150 and $500. (Consult the IRS for details
on the current fee schedule.)

How Does An Organization Obtain An IRS Determination Letter of Exemption?

You must obtain the proper application and related
forms from the IRS (see resource list on page 11).
To apply for Section 501(c)(3) exempt status, you
need to properly complete and file Federal Form
1023. To apply for exempt status under other sections
of the Internal Revenue Code, you generally
need to properly complete and file Federal Form
1024. For general information on Federal tax exemption,
obtain IRS Publication 557. To help ensure
that your organization timely receives the desired
determination, you may want to complete the application
under the guidance of a professional advisor.

Is My Organization Required To Obtain A Federal Tax-Exempt Status?

To find out whether your organization is required to
obtain Federal (IRS) tax-exempt status, study IRS
Publication 557 or talk with an IRS representative.

A qualifying organization may find it wants the IRS
determination letter of Section 501(c)(3) status, even
when it is not required by the IRS. The IRS instructions
for applying for Section 501(c)(3) status state:
?Section 501(c)(3) status provides certain incidental
benefits such as:

ï Public recognition of tax-exempt status.
ï Advance assurance to donors of deductibility of contributions.
ï Exemption from certain state taxes.
ï Exemption from certain Federal excise taxes.
ï Nonprofit mailing privileges, etc.

Also, your organization may want the IRS Section
501(c)(3) exemption letter to use to apply for exemption
from State sales and use tax.