IRS Form 8718 Instructions
In recent years the Internal Revenue Service has converted many user fee applications from paper form to electronic through the federal government’s website. However, there are still applications that may require a user fee to be sent by mail. For example, tax-exempt organizations may use IRS Form 8718, User Fee for Exempt Organization Determination Letter Request, to accompany their user fee payment.
In this article, we’ll walk through everything you need to know about this tax form, including:
- How to complete IRS Form 8718
- Filing considerations
- Frequently asked questions
Let’s start with breaking this tax form into simple steps.
Table of contents
How do I complete IRS Form 8718?
This one-page form is relatively simple to complete. Let’s start at the very beginning.
Organization name
At the top of IRS Form 8718, enter the name of the organization that is submitting the exempt organization determination letter application.
Employer identification number
To the right of the organization’s name, enter the organization’s employer identification number (EIN).
If you do not have an EIN, you may apply for one through the IRS website or by filing Form SS-4, Application for Employer Identification Number.
Type of request
In Line 1, you will enter the filing fees that you are submitting with your determination letter request application and your completed Form 8718.
These fee categories are broken down into two parts:
- Application for recognition of exemption under Section 501 or under Section 521
- Group exemption letters
Let’s take a closer look at each one. Keep in mind that you should only complete one or the other, not both.
Line 1a: Application for recognition of exemption under Section 501 or under Section 521
According to IRS Revenue Procedure 2023-5, the user application fee is $600 for applications for recognition of exemption under Internal Revenue Code Section 501 except for:
- An application for recognition of exemption under IRC Section 501(c)(3) submitted on IRS Form 1023-EZ, or
- Applicable user fee is $250
- Pension, profit-sharing, or stock bonus plans
Line 1b: Group exemption letters
According to IRS Revenue Procedure 2023-5, the user application fee for group exemption letters is $2,500.
Filing IRS Form 8718
Below is some important information about filing this tax form.
Who should file IRS Form 8718
Organizations applying for federal income tax exemption should use this form except for nonprofit organizations who are filing one of the following through the IRS website:
- IRS Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code
- IRS Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code
- IRS Form 1024-A, Application for Recognition of Exemption Under Section 501(c)(4) of the Internal Revenue Code
Examples of requests where you should also file IRS Form 8718 include:
- IRS Form 1028, Application for Recognition of Exemption Under Section 521 of the Internal Revenue Code
- Used by farmers’ cooperatives
- Letter applications for which there is not an existing IRS form
How to file IRS Form 8718
A tax exempt entity requesting a determination letter should send their exempt organization determination letter application form, completed Form 8718, and payment of the required user fee to the following IRS mailing address:
Internal Revenue Service
TE/GE Stop 31A Team 105
P.O. Box 12192
Covington, KY 41012-0192
Acceptable forms of payment
You may enclose a check or money order payable to the “United States Treasury” for the full amount of the correct user fee.
When you should not file IRS Form 8718
You should not file IRS Form 8718 for either of the following:
- Any determination letter request for which there is an existing payment method
- An application for a pension plan determination letter
- Use IRS Form 8717, instead
Video walkthrough
Watch this instructional video to learn more about IRS Form 8718.
Frequently asked questions
Tax-exempt organizations file IRS Form 8718, User Fee for Exempt Organization Determination Letter Request, to accompany the user fee and an exempt organization determination letter request filed with the Internal Revenue Service.
Yes. IRS Form 8718 is not a determination letter request. It simply accompanies request letters that are not electronically filed with the IRS.
No. To request a federal income tax exemption, file Form 1023 or Form 1024. A charitable or religious organization would file Form 1023, while social welfare organizations file IRS Form 1024 to request exempt status.
Where can I find IRS Form 8718?
You can find most reproducible copies of federal tax forms on the IRS website. For your convenience and ease of use, we’ve attached the latest version of this tax form to this article, below.
