How does an organization become tax-exempt?
An organization becomes tax-exempt by applying for recognition of exemption from the Internal Revenue Service (IRS). The IRS will recognize an organization as tax-exempt if it meets the requirements of the Internal Revenue Code. See IRS Publication 557, Tax-Exempt Status for Your Organization, for more information.
Organizations applying for tax-exempt status must submit two applications: First, an application requesting an Employer Identification Number (EIN); and second, an application applying for recognition of exemption.
The IRS sometimes recognizes a group of organizations as tax-exempt if they are affiliated with a central organization. This avoids the need for each of the organizations to apply individually. See IRS Publication 4573, Group Exemptions, for more information. The purpose of this site is to give you legal information. However, no attorney-client relationship is created by your use of this site or any of its features, including the "Contact Us" section. Because legal advice must be tailored to the specific circumstances of each case and laws are constantly changing, you should seek the assistance of competent legal counsel for specific legal advice.