Overview of Form 1024-A e-filing course

Welcome to the Form 1024-A Electronic Filing Course. This course is presented by the Tax Exempt and Government Entities Division's Exempt Organizations Office. I'm Legal the Stay Exempt Eagle. Clarence and I will guide you through the Form 1024-A Electronic Filing Process. Hello, I'm Clarence. Our objective is to explain what is required to complete Form 1024-A and how to submit the form electronically at pay.gov. We'll tell you what to expect at pay.gov and we'll review the different parts of Form 1024-A. The information in this presentation is current as of the day it was recorded, and this session is recorded and maintained in accordance with federal record-keeping laws. This video isn't intended to explain the requirements for qualification for tax exempt status. However, we'll show you where to find information on some requirements. Before you submit a Form 1024-A, your organization must have an Organizing Document and an Employer Identification Number, or EIN. More information on Organizing Documents can be found in Publication 557, Tax Exempt Status for your organization. To apply for an EIN, go to the Employer ID Number page on irs.gov. If you don't already have an account at pay.gov, go to the website and select Create an Account at the top right of the screen. The prompts will help you set up a new account. If you've used pay.gov for other forms in the past, you don't need to create a new account to complete and submit Form 1024-A. Next, sign into your pay.gov account and use the search feature at the top right of the screen to search for Form 1024-A. Select Continue under Form 1024-A. pay.gov will take you to the Form 1024-A landing page. The Form 1024-A landing page displays a variety of information about Form 1024-A, including a link to the instructions to help you complete the application. This page also provides information about the required PDF attachments to Form 1024-A, along with a reminder to not include Social Security numbers in your application. Toward the bottom of the page, you'll see information on when you can expect to hear from the IRS after you've submitted your application. Another feature on the landing page is an option to preview the entire blank Form 1024-A, including the schedules. Just like most other PDF documents, you can print or save a copy, which may help while you're completing the application. Although this PDF form may help you complete the application on pay.gov, remember that the IRS will not accept a form that you print and mail in after April 5, 2021. If you send in a paper form, the IRS will reject the paper copy and you'll have to resubmit the information using the electronic form, delaying your application process. As you complete this form, only use the pay.gov navigation buttons, not the buttons on your browser. If you use your browser's back button, you may lose unsaved work. While completing the form, you may want to use the save button periodically so you don't lose your progress. Each time you save your work, you will be taken to the My Forms page of your mypay.gov account. To continue your application process, select Continue to the Form at the bottom of the pay.gov landing page. Before we walk you through the different parts of Form 1024-A, I'll explain some of the features you'll encounter in pay.gov. First, most lines include helpful instructions. Simply click on the question mark in the blue box next to the question. The same information can be found in the instructions for Form 1024-A, which you can access using the link on the Form 1024-A landing page or on irs.gov. Next, you may see additional questions based on how you respond to certain lines. For example, if you answer Yes to You Make Grants to Other Organizations, you'll see a series of questions related to that activity. If you answer No, you'll continue with the next portion of the application. Certain responses require you to provide a description or explanation. You'll enter this information in the text box that displays below the question. Other questions, like the Statement of Revenues and Expenses, have fillable fields. Each text box and fillable field has its own character rules, such as minimum and maximum characters or limits on what types of characters can be entered. These limits and rules vary from question to question. Another feature in pay.gov is a question completion requirement. Because we want you to submit a complete application, pay.gov won't permit you to move to the next page of the form until you've completed all of the questions on the current page, including entering required descriptions or explanations. As we mentioned earlier, you're required to upload a single PDF document with your application. This PDF must include a copy of the applicant's organizing document and bylaws, if adopted. It's also where you'll include any supplemental information you want to provide to the IRS, such as responses that don't fit within the character limits of text boxes. We'll talk more about this PDF document later. In addition to viewing a blank copy of the form from the landing page, you can preview your completed or partially completed application from any page in the application. You can also save your partially completed application and return to it later. If you run into technical difficulties using pay.gov, you should review the online help page on pay.gov or use the Contact Us information at the bottom of most pay.gov pages. Finally, if you have questions about the application itself or Internal Revenue Code Section 501c4 requirements for exemption, you can contact IRS Customer Account Services for toll-free assistance at 877-829-5500. Now that you know what to expect when you start your application, let's talk about what information is requested in the application. In Part 1, Identification of Applicant, you are asked to enter basic organizational information, including the name and mailing address of the organization, EIN, contact information, and a list of officers, directors, and trustees. One thing to note about Part 1 is that you must include the name, title, and address of the person who will sign this application within your first five entries of officers, directors, or trustees. If you have more than five names to enter, you must check the box indicating you have additional names to add and pay.gov will display a text box for you to enter them. Part 2 of Form 1024-A asks about the applicant's organizational structure. You will need to know how and where the organization was legally formed and whether it adopted bylaws. You may be prompted to provide narrative explanations based on your responses to these questions. You must upload a copy of the applicant's organizing document before submitting this form, which will be addressed later in this presentation. In Part 3, you are asked to provide a detailed description of the organization's activities and pick a National Taxonomy of Exempt Entities, or NTEE, code that best describes its activities. You can also elect to have the IRS select the NTEE code that best describes your activities. A list of NTEE codes can be found in the instructions for Form 1024-A. Your detailed activity description is limited to 5,000 characters or about one typed page of text. If you need additional space to describe activities or answer any of the other questions in this or any other section of the application, you can include the balance of the additional information in the PDF file you're required to upload before submitting the application. The application also asks questions about specific activities the organization may be conducting. You may be prompted for explanations or more detailed descriptions of those specific activities based on your answers to these questions. This is a good time to remind you that you should include and consider past, present, and planned activities when responding to questions throughout the application. Part 4 asks questions related to any compensation and financial arrangements of the organization. These questions focus on compensation practices, related party transactions, and contracts and other financial relationships, such as management contracts or joint ventures. The instructional text and Form 1024-A instructions are helpful when responding to these questions. Part 5 asks you to provide three years of revenues and expenses, including the current year. See the instructions for Part 5 on how to complete information for the three years. Examples of revenue include donations, grants, and fees for services. Expenses may include grants to individuals or organizations, service costs, salaries, and occupancy expenses. You'll also enter balance sheet information, which is a snapshot of your assets and liabilities. Assets may include cash, stocks, and land or buildings. Liabilities may include accounts payable, loans, or mortgages. Part 6 helps the IRS determine your effective date of exemption. Generally, if you file Form 1024-A within 27 months, after the end of the month you were legally formed, and the IRS approves your application, the effective date of your exempt status will be your legal date of formation. If you otherwise meet the requirements for tax exempt status, but don't meet the requirements for recognition from your date of formation, the effective date of recognition of your exempt status will be the date you submitted Form 1024-A. The application asks whether you are submitting this application within 27 months of your organization's formation. If your answer is inconsistent with the formation date entered in Part 2, the system will ask you to make the correction. Part 6 also includes questions on reinstatement if your organization was automatically revoked for failure to file required returns or notices for three consecutive years. The instructions for Form 1024-A provide additional information on the 27-month filing requirement and effective date of exemption. Most exempt organizations are required to file a Form 990-series information return or notice every year. If an organization fails to file a required return or notice for three consecutive years, its exempt status will be automatically revoked. However, certain organizations are not required to file annual information returns or notices, including an affiliate of a governmental unit that meets the requirements of Revenue Procedure 95-48, 1995-2, CB 418. Part 7 of this application allows you to request an exception from filing Form 990-series returns or notices. For information on Form 990 filing requirements, visit the Annual Filings and Forms page on irs.gov. Most organizations described in Section 501c4 are required to notify the IRS that they are operating under Section 501c4 within 60 days of formation by filing Form 8976, Notice of Intent to Operate under Section 501c4. Form 8976 and the corresponding fee may only be completed and submitted electronically. There is no paper form. Please note that submission of Form 1024-A doesn't satisfy the requirement to provide notice to the IRS. Part 8 of this application inquires if your organization filed Form 8976 within 60 days of its formation. To learn how to file the form, visit the Form 8976 page on irs.gov. Before you can submit your application, you must declare you are signing the application under penalties of perjury. Previously, you were instructed to list the person who is signing the form within the first five spaces on the list of officers, directors, or trustees. That's because in Part 9, the person signing the application must type their first and last names exactly as they are entered on the first page of the application. The system will then automatically enter the signer's title in Part 9 along with the current date. On the Upload Checklist, you'll see several items that correspond to the documents in your PDF file, such as the organizing document and bylaws. After confirming each item, select Continue to go to the Upload page. Let's discuss uploading a single PDF as part of your application. First, you'll prepare your required PDF document. The PDF must be a single document and can't exceed 15 megabytes. That's about 250 pages. The PDF must contain a copy of your organizing document and any amendments, a copy of your bylaws if you've adopted them, and any supplemental responses that didn't fit in the provided text boxes. You can also submit other information you would like the IRS to consider. Also, if you have an authorized representative you would like us to communicate with, you should include a completed Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization, for your authorized representative in the final PDF. Finally, if you want to request expedited handling of your application, include a written explanation as to why your application should be expedited in your PDF. For information on expedite criteria, visit the Expedited Application Processing page on irs.gov. If you combine your documents into a single PDF and the file is larger than 15 megabytes, you must remove sufficient information to reduce it below 15 megabytes. Then contact IRS Customer Account Services at 877-829-5500 to find out how to submit the items you removed. To upload the PDF, you'll be prompted to browse your computer or file storage location and select the document you want to upload. Just follow the prompts on the screen and select Attach after you've identified the correct file to upload. You're almost ready to submit your online application. Just one more step. This is where you must enter your user fee payment information using a bank account or credit or debit card. The system will automatically display the correct amount due, so don't worry about under or overpaid. You also have the option to enter one or more email addresses for payment confirmation. If you enter an email address, you'll receive an email from pay.gov confirming that your user fee payment was submitted. When your user fee is paid, congratulations! Your application is submitted. Although pay.gov will retain a copy of your submitted application and PDF attachment in your account, we recommend you print or save a copy of your completed application and PDF attachment for your records. Before we go, we want to leave you with more information on the requirements and the application process for Section 501c4 Tax Exempt Status. First, the instructions for Form 1024a provide a general overview of Section 501c4 status and detailed instructions for completing the application. Publication 557 Tax Exempt Status for Your Organization discusses the rules and procedures for organizations that seek tax exempt status. It explains the procedures to follow to obtain a determination letter, filing requirements, and required disclosures, as well as information on the organizational test requirements under Section 501c4 and different types of 501c4 organizations. If you don't have an EIN, you can use this link to get one. Another useful site is where you're viewing this presentation. This site focuses on Section 501c3 organizations, but includes a variety of tutorials, videos, and recent news for many types of exempt organizations. If you run into any problems at pay.gov, we recommend you review the information using the online help option, which provides help text on pay.gov accounts, viewing or browser issues, and other frequently asked questions. Finally, you're always welcome to call our knowledgeable Customer Account Services representatives at 877-829-5500 or visit the Charities and Nonprofits pages on www.irs.gov. On behalf of everyone in the IRS Exempt Organizations Division, thank you for taking this course. Before you leave, please take a minute to send us your feedback. The information you provide will ensure that this and other courses at Stay Exempt provide a valuable learning experience for future participants. After you've sent your feedback, you can print out a Certificate of Completion as recognition for attending this course.