Form 8718, titled "User Fee for Exempt Organization Determination Letter Request," is a document that must be completed by certain organizations seeking to obtain a determination letter from the IRS regarding their exempt status. This form is particularly relevant for:
1. Nonprofit organizations: Nonprofit organizations, such as charities, foundations, and educational institutions, may need to complete Form 8718 to request an official determination letter from the IRS confirming their tax-exempt status.
2. Social welfare organizations: Social welfare organizations, commonly referred to as 501(c)(4) organizations, which focus on promoting social welfare causes or advocating for specific issues or policies, may also need to fill out Form 8718 to apply for an exempt status determination.
3. Agricultural or horticultural organizations: Agricultural and horticultural organizations aiming to secure tax-exempt status under section 501(c)(5) of the Internal Revenue Code may be required to complete this form to request an official determination letter.
4. Labor or agricultural associations: Labor unions or associations formed for the purpose of improving labor conditions or furthering the interests of farmers or fishermen may need to utilize Form 8718 to apply for an exempt status determination under section 501(c)(5) or 501(c)(6) of the tax code.
5. Business leagues or trade associations: Business leagues, chambers of commerce, professional trade associations, or similar groups may have to complete Form 8718 if they wish to seek tax-exempt status under section 501(c)(6) and obtain a determination letter from the IRS.
The completion of Form 8718 involves providing specific organizational and financial information, paying the applicable user fee, and submitting the form to the appropriate IRS address as mentioned in the instructions. This form is designed to ensure compliance with IRS requirements and help organizations navigate the process of obtaining an official determination letter for their exempt status.