​​As described on this page, the information below refers to an earlier version of Form 1023.

Page 5 - Part VII - Your History
(Including information about Form 1023, Schedule E)

Page 5 - Question 1 - Successor organizations
If your organization is a successor to a for-profit entity, you should probably have your application professionally prepared.

Page 5 - Question 2 - 27 Month Rule
New organizations normally have only 27 months to submit a Form 1023, 501(c)(3) Application, to the IRS.  When a Form 1023 application is filed late, the IRS grants 501(c)(3) status "prospectively" - that is, effective beginning with the date postmarked on the application envelope, forward. This can adversely affect both the taxes owed by the organization, and whether donors may take a charitable contribution deduction.

A law enacted in 2007 requires the IRS to revoke the exempt status of any organization that fails to file a required annual return for three consecutive years.  Many organizations that have been in existence for 27 months or more without filing an application will find that this law prevents them from obtaining retroactive exemption.

An organization that missed the 27 month deadline is required to complete Form 1023, Schedule E:

Page 20 - Schedule E

Page 20 - Schedule E - Questions 1 through 4
The 27 Month Rule is waived for churches, small publicly supported organizations, subordinate organizations covered by a Group Ruling, and organizations created before October, 1969.

Page 20 - Schedule E - Question 5 - Extension
An organization that missed the 27 month deadline, and needs 501(c)(3) status for prior periods, should check the yes box in Question 5 and prepare a statement that shows that you acted reasonably and in good faith and that granting the extension will not prejudice the interests of the government. The instructions to Form 1023 provide some assistance, but you might want to seek professional help.

Page 20 - Schedule E - Questions 6 and 7 - Projected Revenue
If you do not want to apply for an extension, you may be required to provide a projected budget here.

Page 20 - Schedule E - Question 8 - 501(c)(4) Status - Eliminated!
At one time, an organization that missed the 27 month deadline and did not need retroactive 501(c)(3) status could get 501(c)(4) status for prior periods.  In 2015, a change in tax law imposed a 60 day notification deadline on 501(c)(4) organizations, leading the IRS to remove this option from Schedule E.  

Form 1023 - Part VII​