Form 1023, Part VII

Page 5 - Part VII - Your History (Including information about Form 1023, Schedule E) Page 5 - Question 1 - Successor organizations If your organization is a successor to a for-profit entity, you should probably have your application professionally prepared. Page 5 - Question 2 - 27 Month Rule New organizations normally have only 27 months to submit a Form 1023, 501(c)(3) Application, to the IRS. When a Form 1023 application is filed late, the IRS grants 501(c)(3) status "prospectively" - that is, effective beginning with the date postmarked on the application envelope, forward. This can adversely affect both the taxes owed by the organization, and deductibility by donors. An organization that missed the 27 month deadline is required to complete Form 1023, Schedule E: Page 20 - Schedule E - Questions 1 through 4 The 27 Month Rule is waived for churches, small publicly supported organizations, subordinate organizations covered by a Group Ruling, and organizations created before October, 1969. Page 20 - Schedule E - Question 5 - Extension An organization that missed the 27 month deadline, and needs 501(c)(3) status for prior periods, should check the yes box in Question 5 and prepare the statement that shows that you acted reasonably and in good faith and that granting the extension will not prejudice the interests of the government. The instructions to Form 1023 provide some assistance, but you might want to seek professional help. Page 20 - Schedule E - Questions 6 and 7 - Projected Revenue If you do not want to apply for an extension, you may be required to provide a projected budget here. Page 20 - Schedule E - Question 8 - 501(c)(4) Status An organization that missed the 27 month deadline, and does not need retroactive 501(c)(3) status, can usually get 501(c)(4) status for prior periods.

This is an excerpt from an email from a purchaser of Sandy Deja's book, Prepare Your Own 501(c)(3) Application.   Thank you for this opportunity to send you my appreciation for your book - Prepare Your Own 501c3.  It was a God send to us. Our group, Save A Yorkie Rescue, Inc. has been in operation since January 2002...My biggest concern was that we were well past the 27 month limit. But YOU had a sample letter that could be used to ask the IRS for an exception. I wrote a letter to the IRS based on your example...and found out just 2 weeks ago that we are approved!!!!! AND retro back to 2002! All thanks to YOUR advice and guidelines. I can't thank you enough. I recommend it to ALL of my rescue friends because our circumstances are all different but your advice covers it all. I highly recommend it to anyone who needs help filling out the application. It is worth much more than I paid for it. THANK YOU!   Marilyn Faughner President Save A Yorkie Rescue, Inc.    Visit www.501c3book.com for more information. (Available only as an ebook.)

This page last reviewed April, 2011.

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