How to Fill Out IRS Form 8718 (w/Examples) + FAQs

IRS Form 8718 is the User Fee for Exempt Organization Determination Letter Request, a one-page transmittal that tells the IRS how much money you are paying to have your nonprofit’s tax-exempt status reviewed. You attach it to the front of Form 1024, Form 1024-A, or Form 8940 when you mail or e-file your determination request, and you check a box that matches your organization’s gross receipts so the IRS knows the correct fee.

Roughly 80,000 organizations apply for tax-exempt status every year through the IRS Tax Exempt and Government Entities (TE/GE) division, and the user fee schedule published each January in Revenue Procedure 2026-5 controls every one of those filings. Getting Form 8718 wrong is the single fastest way to have your application sent back, so this guide walks you through every box, every fee tier, and every common pitfall.

Here is what you will learn:

📋 How to fill out every line of Form 8718 without guessing
💵 The exact 2026 user fees for each application type and how to pick the right one
🏛️ Which forms require Form 8718 and which (like Form 1023-EZ) do not
⚠️ The 7 most expensive mistakes filers make and how to dodge them
✅ Real named-person examples for charities, trade groups, and private foundations

What Is IRS Form 8718?

IRS Form 8718 is a transmittal cover sheet, not a substantive application. The form’s only job is to confirm two things: the type of determination you are requesting and the user fee you are paying for that determination. The IRS uses it to route your money to the right account and your file to the right specialist inside the Exempt Organizations Rulings and Agreements office in Cincinnati, Ohio.

Congress authorized these user fees under Internal Revenue Code §7528, which requires the IRS to charge for determination letters so the program is self-funded. The plain-English meaning is simple: the public does not pay through general taxes for your private letter ruling — you do. The consequence of skipping or underpaying the fee is automatic rejection, and the IRS will mail your packet back unprocessed within about 30 days.

A common misconception is that Form 8718 grants tax-exempt status. It does not. The form merely accompanies the real application (Form 1024, 1024-A, or 8940), and the determination letter you eventually receive is what confers exempt status under IRC §501.

Who Must File Form 8718

You must file Form 8718 if you are requesting a determination letter for a non-501(c)(3) exempt status, or if you are requesting a miscellaneous determination on Form 8940. Organizations applying under IRC §501(c)(3) using Form 1023 or Form 1023-EZ do not use Form 8718, because those applications now embed the user fee directly inside the pay.gov submission process.

The consequence of attaching Form 8718 to a Form 1023 packet is rejection of the duplicate fee and confusion in processing. A real-world example: a founder named Marcus tried to attach Form 8718 to his Form 1023 packet in 2025 and ended up with two charges on his corporate card and a six-week delay while the IRS unwound the second payment.

Who Should Not File Form 8718

You should not file Form 8718 if you are filing Form 1023, Form 1023-EZ, or Form 1024-A through pay.gov where the fee is paid online. You also do not use Form 8718 for private letter rulings under Rev. Proc. 2026-1, which use a different fee schedule and a different transmittal.

The misconception here is that “any IRS exempt organization filing needs Form 8718.” That is false, and submitting it with the wrong application can cause the IRS to misapply your fee. The result is a refund delay of 8 to 12 weeks while Treasury’s Bureau of the Fiscal Service reverses the deposit.

The 2026 User Fee Schedule

The user fees on Form 8718 are set annually in the first revenue procedure of each year, currently Rev. Proc. 2026-5. For 2026, the schedule below controls every Form 8718 filing. The fees apply to the determination request itself, not to your annual Form 990 filings.

Request Type	2026 User Fee
Initial application, Form 1024 or 1024-A, gross receipts averaging not more than $10,000 over 4 years	$275 Rev. Proc. 2026-5
Initial application, Form 1024 or 1024-A, gross receipts averaging more than $10,000 over 4 years	$600 Rev. Proc. 2026-5
Group exemption letter	$2,000 Rev. Proc. 2026-5
Form 8940 miscellaneous determination (most types)	$500–$2,500 depending on type per Form 8940 instructions

The plain-English explanation is that bigger nonprofits pay more because their files require more specialist review hours. The consequence of choosing the lower tier when your average exceeds $10,000 is a fee deficiency notice and a stalled application.

A real-world example: a 501(c)(6) trade group called Riverbend Plumbers Association averaged $11,200 in receipts but checked the $275 box. The IRS issued a deficiency letter, the group sent the $325 difference, and the determination was delayed by 74 days.

A common misconception is that the four-year average looks at future projected receipts. It does not. The IRS looks at the four prior tax years, or if the organization is newer, a reasonable estimate of the first four years of operations.

A Line-by-Line Walkthrough of Form 8718

Form 8718 has only a handful of fields, but each one matters. The form is divided into a header block, a determination type checkbox section, and a fee certification line. Filling each item correctly takes about 10 minutes once you have your EIN and your gross receipts averages in front of you.

The IRS instructions for Form 8718 are short, but they hide several traps. Below, every line gets a plain-English explanation, the consequence of getting it wrong, a real-world example, and the most common misconception about that line.

Line 1: Name of Organization

Line 1 asks for the legal name of the organization exactly as it appears on your Articles of Incorporation and your EIN application. The IRS matches this name to your Form SS-4 record, so even a small variation can cause a mismatch.

The consequence of a mismatched name is a delayed posting of your fee and a request for clarification from the TE/GE Customer Account Services unit. A real-world example: a founder named Priya listed “Bright Futures Foundation Inc.” on Form 8718 but “Bright Futures Foundation, Inc.” (with a comma) on her Form 1024-A, and the IRS opened a name-correction case.

The misconception is that DBAs (doing-business-as names) belong on Line 1. They do not. Use only the legal entity name, and disclose any DBA on the underlying application instead.

Line 2: Employer Identification Number

Line 2 captures your nine-digit EIN. If you do not have one, you must get one through the online EIN application before filing Form 8718.

The consequence of a missing or wrong EIN is an outright rejection because the IRS cannot post the fee. A real-world example: a board treasurer named Devon transposed two digits and the IRS returned the entire packet, costing six weeks.

A misconception is that a Social Security Number can substitute for an EIN. It cannot, and using one will trigger a Privacy Act flag inside the IRS systems.

Box 1a, 1b, and 1c: Determination Type

The determination type checkboxes tell the IRS which kind of letter you want. Box 1a is for an initial determination on Form 1024 or 1024-A. Box 1b is for a group exemption. Box 1c is for miscellaneous determinations filed on Form 8940, like advance approval of grant procedures or a public charity reclassification.

The consequence of checking the wrong box is misrouting inside Cincinnati TE/GE and a delay of 30 to 60 days. A real-world example: a private foundation named Cedar Hollow Trust checked Box 1a when it should have checked Box 1c for a Form 8940 scholarship procedure approval, and the file sat in the wrong queue for two months.

The misconception is that you can check more than one box to “cover your bases.” You cannot, and doing so will cause the IRS to send the file back for clarification under Rev. Proc. 2026-5 §7.

Fee Amount and Gross Receipts Certification

Below the determination boxes, Form 8718 asks you to certify the average annual gross receipts of the organization and to enter the corresponding fee. You must check either the not more than $10,000 box or the more than $10,000 box for Form 1024 and 1024-A filers.

The consequence of an incorrect certification is a deficiency notice and possible referral to IRS Examination if the misstatement looks intentional. A real-world example: a 501(c)(7) social club called Lakeside Sailing Club understated receipts to qualify for the $275 fee and was later asked to certify under penalties of perjury, exposing the board to personal risk.

A misconception is that “gross receipts” means net income. It does not — it means total receipts before any expenses, as defined in the Form 990 glossary.

Signature and Title

Form 8718 must be signed by an officer, director, trustee, or authorized representative holding a valid Form 2848 power of attorney. The signature must include a printed name, a title, and a date.

The consequence of a missing or unauthorized signature is rejection of the entire packet. A real-world example: a volunteer bookkeeper signed Form 8718 for a 501(c)(4) advocacy group without holding any office, and the IRS rejected the application until a board member re-signed.

The misconception is that an attorney’s electronic signature alone is enough. It is not, unless a current Form 2848 is on file with the Centralized Authorization File (CAF).

Three Real-World Filing Scenarios

Below are the three most common Form 8718 filing scenarios, each with the right action and the consequence of getting it wrong. The scenarios mirror the cases the IRS sees most often inside the TE/GE Cincinnati intake unit.

Scenario 1: Small 501(c)(6) Trade Association

Filing Step	Outcome
Founder Aisha Bell lists “Metro Bakers Guild” on Line 1, EIN on Line 2, checks Box 1a, certifies receipts under $10,000, encloses $275 check payable to United States Treasury	IRS posts fee within 7 days and routes Form 1024 to a specialist for review per Rev. Proc. 2026-5
Aisha forgets to sign Form 8718	Entire packet returned within 30 days, costing two months of processing time

Scenario 2: 501(c)(4) Social Welfare Organization Filing Online

Filing Step	Outcome
Director Tomás Vega files Form 1024-A on pay.gov and pays the $600 fee electronically	No Form 8718 required because pay.gov collects the fee
Tomás also mails a paper Form 8718 with a check	IRS opens a duplicate-payment case and refund takes 10 weeks

Scenario 3: Private Foundation Requesting Advance Approval of Grant Procedures

Filing Step	Outcome
Trustee Hannah Liu files Form 8940 for advance approval of grant-making procedures, attaches Form 8718, checks Box 1c, encloses $1,000 fee	IRS issues determination within 180 days under IRC §4945(g)
Hannah checks Box 1a by mistake	File misrouted to the 1024 queue and delayed 60 days

Three Named Examples to Anchor the Rules

Beyond the scenario tables, three concrete examples make the rules real. Each example involves a named person, a clear goal, and the exact Form 8718 choices made.

First, Marcus Okonkwo runs the Greenline Veterans Post, a new 501(c)(19) organization. Marcus files Form 1024, attaches Form 8718, checks Box 1a, certifies projected average receipts above $10,000 based on member dues, and pays $600. His determination letter arrives in 5 months because his Form 8718 was complete and matched his Form 1024 perfectly.

Second, Priya Shah leads the Bright Futures Foundation, a 501(c)(4) social welfare nonprofit. Priya files Form 1024-A through pay.gov, pays online, and does not attach Form 8718. Her file moves directly to the determination queue, and she avoids the duplicate-payment trap entirely.

Third, Hannah Liu serves as trustee of the Cedar Hollow Trust, a private foundation seeking advance approval of scholarship procedures under IRC §4945(g)(1). Hannah files Form 8940, attaches Form 8718, checks Box 1c, and pays the $1,000 fee specified in the Form 8940 instructions. The advance approval letter arrives within six months, allowing the foundation to award scholarships without §4945(d)(3) taxable expenditure exposure.

Mistakes to Avoid With Form 8718

Filing mistakes on Form 8718 are common and costly. The list below covers the seven most damaging errors the IRS sees, each with the negative outcome you should expect.

Checking the wrong gross-receipts tier, which triggers a fee-deficiency notice from TE/GE and a 30–90 day delay
Attaching Form 8718 to a Form 1023 or 1023-EZ packet, which causes a duplicate charge and an 8–12 week refund cycle through Treasury Fiscal Service
Writing the check to “IRS” instead of “United States Treasury,” which causes the bank to reject the deposit per IRS payment guidance
Using a personal Social Security Number in place of an EIN, which triggers a Privacy Act flag and full file rejection
Signing without authority, which is rejected unless a Form 2848 is on file with the CAF unit
Checking more than one determination box, which causes file misrouting under Rev. Proc. 2026-5 §7
Sending the packet to the wrong address, where the correct address is published in the Form 1024 instructions and the Form 8940 instructions

Do’s and Don’ts of Form 8718

Form 8718 rewards precision. The list below pairs five do’s with five don’ts and explains the reasoning behind each.

Do’s

Do match the legal name on Line 1 to your EIN record because mismatches stall fee posting
Do calculate gross receipts using the four prior tax years per the Form 990 glossary because the IRS verifies this against your filings
Do pay by check or money order payable to United States Treasury per IRS payment rules because banks reject other payees
Do retain a copy of the signed Form 8718 for at least 7 years because the IRS may request reconfirmation under IRC §7528
Do confirm the current fee in the latest Rev. Proc. 2026-5 before mailing because fees change every January

Don’ts

Don’t attach Form 8718 to Form 1023 or 1023-EZ because the fee is collected through pay.gov
Don’t use white-out or pen corrections because the IRS may reject altered forms under IRM 7.20.1
Don’t write a single check for two different applications because the IRS cannot split deposits
Don’t list a DBA on Line 1 because the legal name controls the SS-4 record
Don’t sign as a non-officer because the form must be signed by an officer, director, trustee, or authorized representative

Pros and Cons of the Form 8718 User Fee System

The user-fee model has real benefits and real burdens. Understanding both helps you plan your application timeline and budget.

Pros

Predictable pricing across all applicants under IRC §7528 so small nonprofits are not blindsided
Lower-tier fee of $275 for true micro-nonprofits per Rev. Proc. 2026-5, keeping access affordable
Funds dedicated specialist review inside the TE/GE Cincinnati office instead of relying on appropriations
Public fee transparency through annual revenue procedures published in the Internal Revenue Bulletin, avoiding hidden charges
Optional expedited handling is available for compelling reasons, helping urgent filers

Cons

$600 fee is significant for new mid-size nonprofits with thin starting cash, per Rev. Proc. 2026-5
Wrong-tier checks trigger deficiency notices and long delays in TE/GE processing
Refunds for duplicate payments take 8–12 weeks through Treasury Fiscal Service
Paper filing risks lost mail, since Form 8718 is not yet integrated into pay.gov for all underlying forms
No fee waiver exists for genuinely indigent organizations under current IRC §7528 policy

State-Level Considerations After Federal Filing

Form 8718 is purely a federal form, but every state imposes its own follow-up registration once the IRS issues your determination letter. After receiving your federal letter, you typically must register with your state’s charity regulator, often within 30 to 90 days.

For example, California requires registration with the Attorney General’s Registry of Charities, New York requires filing with the Charities Bureau, and Texas requires registration with the Office of the Attorney General for certain solicitation activities. The consequence of skipping state registration is loss of fundraising privileges and potential civil penalties.

A common misconception is that the federal determination letter automatically grants state tax exemption. It does not, and most states require a separate filing such as California Form 3500 or New York Form CT-247.

Court Rulings That Shape Determination Letters

Several court decisions inform how the IRS handles Form 8718 and the underlying determinations. The leading case, Bob Jones University v. United States, 461 U.S. 574 (1983), held that the IRS may deny exempt status to organizations whose policies violate established public policy.

In National Muffler Dealers Association v. United States, 440 U.S. 472 (1979), the Supreme Court upheld the Treasury’s authority to define “business league” narrowly under IRC §501(c)(6), shaping how Form 1024 applicants describe their activities. More recently, the True the Vote v. IRS litigation reinforced that the IRS must treat applications neutrally regardless of viewpoint, an important backdrop for any 501(c)(4) filer using Form 1024-A.

The consequence of ignoring these precedents is a substantive denial that no Form 8718 fee will cure. Filers should align their narrative with both the Treasury Regulations §1.501(c)(3)-1 framework and the controlling case law before paying the fee.

How to Submit Form 8718

Form 8718 must travel with your underlying application. For Form 1024 and Form 8940 filings, attach Form 8718 to the front of the packet, include your check or money order, and mail to the address listed in the Form 1024 instructions (currently Internal Revenue Service, P.O. Box 12192, Covington, KY 41012-0192 for paper filers).

For Form 1024-A, the IRS requires electronic filing through pay.gov, and Form 8718 is not used. The consequence of mailing a paper Form 1024-A with Form 8718 is rejection under the final regulations on electronic filing.

A common misconception is that you can pay the user fee by credit card with a paper Form 8718. You cannot — the IRS only accepts checks or money orders for paper Form 8718 filings, per the IRS payment guidance.

Expedited Handling Requests

The IRS will consider expedited handling of an exempt-organization determination in limited circumstances. You request expedited handling by attaching a separate written statement to your Form 8718 packet, citing reasons such as a pending grant deadline, a natural disaster relief need, or undue hardship per IRS expedited processing guidance.

The consequence of a granted expedited request is review within 60 to 90 days instead of the typical 6 to 12 months. A real-world example: a disaster-relief 501(c)(3) sponsor named Rapid Response Cincinnati secured expedited handling after attaching a FEMA grant award letter, cutting its determination timeline by half.

The misconception is that simply asking for expedited handling guarantees it. It does not — the IRS denies most expedited requests, and only well-documented hardship or third-party deadlines move the needle.

Refunds and Reconsiderations

If you overpay or pay the wrong fee on Form 8718, the IRS will refund the difference, but slowly. Refunds typically arrive 8 to 12 weeks after the IRS recognizes the overpayment, processed through the Treasury Bureau of the Fiscal Service.

If your application is denied, the user fee is not refunded. The fee covers the review, not the outcome, under IRC §7528. You may, however, appeal the denial through the IRS Independent Office of Appeals without paying a second fee.

A common misconception is that withdrawing your application before the determination triggers a refund. It does not, unless the IRS has not yet begun substantive review, per Rev. Proc. 2026-5 §10.

FAQs

Do I need Form 8718 with Form 1023?

No. Form 1023 and Form 1023-EZ filers pay the user fee directly through pay.gov, so attaching Form 8718 creates a duplicate-payment problem and delays your determination.

Do I need Form 8718 with Form 1024-A?

No. Form 1024-A is filed electronically on pay.gov, and the system collects the fee at submission, making Form 8718 unnecessary and incorrect for that filing path.

Is the Form 8718 user fee refundable if my application is denied?

No. The user fee covers the IRS review, not the outcome, under IRC §7528, so denials do not generate refunds even after a full appeal.

Can I pay the Form 8718 fee with a credit card?

No. Paper Form 8718 filings only accept a check or money order payable to United States Treasury, per IRS payment guidance; credit card payment is not supported for paper submissions.

Does Form 8718 grant tax-exempt status?

No. Form 8718 is only a transmittal that records the user fee, while the determination letter issued under IRC §501 is what actually confers exempt status to your organization.

Can a single Form 8718 cover two applications?

No. Each determination request needs its own Form 8718 and its own fee, because the IRS cannot split a single deposit across two case files in TE/GE processing.

Should I include Form 8718 if I file Form 8940?

Yes. Form 8940 miscellaneous determination requests use Form 8718 to transmit the user fee, with amounts ranging from $500 to $2,500 in the Form 8940 instructions.

Can my CPA sign Form 8718?

Yes. A CPA, attorney, or enrolled agent can sign if a current Form 2848 power of attorney is on file with the Centralized Authorization File before the signature date.

Is Form 8718 the same as Form 8940?

No. Form 8718 is a fee transmittal, while Form 8940 is the substantive miscellaneous determination request, and the two are filed together when you need an IRS ruling on a non-application matter.

Can I expedite Form 8718 processing?

Yes. You may request expedited handling by attaching a written statement explaining the compelling reason, but the IRS grants expedited treatment only in limited hardship or deadline-driven situations.

Does each state require a separate fee after Form 8718?

Yes. State charity registration is separate, with fees and forms set by each state regulator such as the California Attorney General and the New York Charities Bureau.

Is Form 8718 ever filed alone?

No. Form 8718 must always accompany an underlying request such as Form 1024, Form 1024-A paper variants, or Form 8940, because by itself it does not request any determination from the IRS Exempt Organizations office.

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