If I Form an Arizona Nonprofit Corporation, Is It Automatically Tax Exempt?
No. Although forming a nonprofit corporation is the first step to creating a tax exempt organization, there is an additional step required by the IRS. The IRS requires organizations that wish to be tax exempt to complete a Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code. The 1023 requires specific information about the organization including a detailed narrative about the organization and its activities, budgets and financial statements, copies of corporate governing documents, statements regarding director and officer compensation and more. Learn more about preparing a Form 1023 and Abigail Neal’s 1023 preparation services.