IRS revises Form 1024‐A to allow for electronic filing

• DOI: http://doi.org/10.1002/ban.31228
• Published date: 01 March 2021
• Date: 01 March 2021

12 Board & Administrator

DOI 10.1002/ban © 2021 Wiley Periodicals LLC • All rights reserved

IRS revises Form 1024-A

to allow for electronic ling

The Internal Revenue Service has issued a re-

vised Form 1024-A, Application for Recognition of

Exemption Under Section 501(c)(4) as part of on-

going efforts to improve service for the tax-exempt

community. The goal of the changes—as well as

the accompanying instructions—is to allow elec-

tronic f‌iling, the agency said.

Section 501(c)(4) provides for the exemption of

two different types of organizations with their own

distinct qualif‌ication requirements, the agency said:

• Social welfare organizations. This includes

civic leagues or organizations not organized for

prof‌it but operating exclusively for the promotion

of social welfare. Homeowners associations and

volunteer f‌ire companies may be recognized as

exempt as social welfare organizations if they meet

the requirements for exemption. Organizations

that engage in substantial lobbying activities are

sometimes also classif‌ied as social welfare organi-

zations, the agency noted.

• Local associations of employees. The mem-

bership of these associations is limited to the em-

ployees of a designated person(s) in a particular

municipality, and the net earnings of which are

devoted exclusively to charitable, educational or

recreational purposes.

According to the IRS, electronic f‌iling will make

the Form 1024-A application easier to complete

while reducing errors and also shortening processing

time, so applicants won't wait as long for a response.

Organizations seeking to be exempt under Sec-

tion 501(c)(4) may now use the electronic version of

the form available at Pay.gov. The IRS will provide

a 90-day grace period during which it will continue

to accept paper versions of Form 1024-A (Rev. 01-

2018); however, after April 5 the Form 1024-A must

be submitted electronically, the agency said.

The required user fee for Form 1024 will re-

main $600 for 2021. Applicants must pay the fee

through Pay.gov when submitting the form.

For more information, visit https://bit.

ly/3qG6tkl. ■

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