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Tax-exempt organization

Describe the process for becoming a tax-exempt organization. Why is it important for an accountant to understand this process?

Note: Please cite the sources

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The first step in becoming a tax exempt organization is that your organization must be incorporated.

The other steps are:

File Form 8718, which determines whether your organization qualifies for exemption.

All tax forms can be obtained from the IRS by calling 1-800-829-3676; additional (recorded) information can be obtained by calling 1-800-829-1040. Tax forms can also be downloaded directly from the IRS Web site at www.irs.gov.

File Form 1023. This is a huge booklet, but ...

Solution Summary

Describe the process for becoming a tax-exempt organization. Why is it important for an accountant to understand this process?

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