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January 10, 2022

IRS updates exemption application procedures, including electronic filing for Form 1024

As 2022 begins, the IRS has issued two pieces of procedural guidance affecting entities that seek tax-exempt status under the Internal Revenue Code (IRC).

New procedures for issuing exemption letters

Revenue Procedure 2022-5 contains annual guidance revising IRS procedures for issuing tax-exemption determination letters. Changes from the corresponding guidance issued in 2021 (Revenue Procedure 2021-5) focus mainly on electronic filing requirements for Form 1024, Application for Recognition of Exemption Under Section 501(a), and Form 1024-A, Application for Recognition of Exemption Under Section 501(c)(4) of the Internal Revenue Code. These changes:

  • Reflect information and procedures provided in Revenue Procedure 2021-8, addressing requirements to file Form 1024-A electronically
  • Update information on filing Forms 1024 electronically
  • Explain that the IRS will not issue determination letters requesting IRC Section 501(c)(5) status for labor, agricultural or horticultural entities that develop jobs, products, or industries involving controlled substances that are illegal under federal law, even if they are legal under state law (i.e., cannabis)
  • Note that various guidance is supplemented, including:
    • Revenue Procedure 80-27 (for requesting a group exemption ruling letter) — clarifying that the IRS is not currently accepting such requests, pending final guidance
    • Revenue Procedure 72-5 (for religious and apostolic organizations seeking exemption under IRC Section 501(d)) — updating procedures for issuing exemption determination letters
    • Revenue Procedure 2015-7 (for IRC Section 501(c)(29) co-op health insurance issuers) — updating procedures for issuing exemption determination letters
    • Revenue Procedure 2014-11 (for reinstating revoked tax-exempt status)
    • Revenue Procedure 2016-41 (for notifying the IRS that an entity is organized and operating as a social welfare organization under IRC Section 501(c)(4))
    • Revenue Procedure 2018-15 (for circumstances under which a domestic IRC Section 501(c) entity changing its form or place of organization does not need to file a new exemption application)

Requiring electronic submission of Form 1024

In Revenue Procedure 2022-08, the IRS modified Revenue Procedure 2022-05 to reflect the new electronic filing requirement for applications on Form 1024, Application for Recognition of Exemption Under Section 501(a) or Section 521 of the Internal Revenue Code, and the new electronic submission process on

The guidance provides that Form 1024 should be filed electronically beginning January 3, 2022, though it provides a 90-day transition relief period during which the IRS will accept paper Forms 1024 (through April 4, 2022). It also modifies who is authorized to sign a Form 1024: an officer, director, or trustee or other official authorized to sign for the organization.

Form 1024 is used to seek tax-exempt status as an entity described in IRC Section 501(c)(2), (c)(5), (c)(6), (c)(7), (c)(8), (c)(9), (c)(10), (c)(11), (c)(12), (c)(13), (c)(14), (c)(15), (c)(16), (c)(17), (c)(18), (c)(19), (c)(21), (c)(22), (c)(23), (c)(25), (c)(26), (c)(27), (c)(28), (c)(29) or 501(d).

Note that user fees required to accompany exemption applications on Forms 1023, 1023-EZ, 1024 and 1024-A must be paid through


When applying for tax exemption under a variety of IRC sections, an organization should be certain that it is filing the correct IRS form and using the correct method of transmission. The IRS already requires Form 1023 to be electronically filed, and now requires Form 1024 and Form 1024-A to be e-filed under the new procedures. The IRS also lists the circumstances under which it will not issue a determination letter, so organizations may wish to check this list before filing an application. For instance, applications for group exemption letters will not be accepted until the IRS publishes a final group exemption revenue procedure.

As the IRS continues to digitize its forms following the Taxpayer First Act's e-filing mandates, tax-exempt entities should expect most IRS forms to shift to electronic filing in the coming years.

Please contact your EY tax professional with any questions or for assistance.



— For more information about EY's Exempt Organization Tax Services group, visit us here.


Contact Information
For additional information concerning this Alert, please contact:
Tax-Exempt Organization Services
   • Stephen Clarke (
   • Melanie McPeak (
   • Morgan Moran (
   • Bridget O’Connell (