You will see “Form 1028” used two different ways in the real world, the IRS application for Section 521 cooperative exemption and Texas’s H1028 employment verification form. If you have ever mixed them up during busy season, you are in good company.
I learned that lesson years ago when a client emailed “We need the 1028 today.” Our tax team prepped the IRS exemption packet, while the client’s property manager was actually waiting on Texas H1028 to finish a lease approval.
Two different forms, two very different outcomes. Since then, we keep a one‑page playbook near our intake desk that flags the difference in bold letters. You are about to get that same clarity, plus step‑by‑step guidance you can hand to your team.
Key Takeaways
- IRS Form 1028 is the application a farmers’ cooperative uses to request recognition of exemption under IRC Section 521, and the IRS expects a determination user fee with that request. As of late 2025, the Internal Revenue Manual shows a $600 fee when processing Form 1028 submissions. Confirm the current amount before you file.
- Publication 557 confirms cooperatives use Form 1028 for Section 521 and notes fee procedures, historically via Form 8718 or the IRS’s current payment process. Some Section 521 requests may be allowed through electronic Form 1024, so verify the latest pathway before submitting.
- If exemption is granted, the cooperative files Form 1120‑C each year. Keep a copy of your application in your permanent records, not just three years, and keep books and records as long as they may be material to tax administration.
- Texas Form H1028 is a state benefits employment verification form, typically used to confirm wages for programs or by third parties such as landlords or lenders. You complete it from payroll data and return it to the requester.
- Do not confuse the two. IRS Form 1028 affects a cooperative’s federal tax posture, while Texas H1028 is an employment verification tool that supports eligibility or underwriting decisions.
What Is IRS Form 1028?
IRS Form 1028 is the “Application for Recognition of Exemption Under Section 521 of the Internal Revenue Code.” A farmers’ cooperative uses it to request a determination that it qualifies for the special tax treatment available under Section 521. The IRS’ official overview page and Pub. 557 both anchor this point.
Who actually files Form 1028
- Farmers’ cooperatives and similar associations that meet Section 521 criteria for organization and operation.
- The application is not a general nonprofit filing and it is not used for tip reporting or payroll topics. If your need involves tip reporting, you are likely thinking of Form 8027 or payroll documentation, not Form 1028.
What the IRS expects in a complete 1028 packet
The IRS instructions emphasize a complete application with the cooperative’s EIN, organizing documents, and financial statements. They also remind filers to keep a copy in their permanent records. If the cooperative is recognized under Section 521, it files Form 1120‑C annually.
In plain terms, think of Form 1028 as your cooperative’s “proof packet” for Section 521. The packet shows how you are organized, how you operate, and why you qualify.
Fees and how to pay, 2026 checkpoint
The IRS processes exempt‑organization and Section 521 determinations with a user fee. The Internal Revenue Manual section on determinations shows that submissions using Form 1028 are returned as incomplete if the fee is not correct, and cites $600 for Form 1028. Always verify the current amount and payment channel on the IRS site before you send the packet, since user fees can change.
Publication 557 also references fee procedures for exemption requests and historically points filers to Form 8718, the fee transmittal, though the IRS continually migrates payments to newer channels. The IRS “About Form 1028” page, last reviewed December 3, 2025, contains the latest links and related products.
How To Prepare a Strong IRS 1028 Package
Over the years, our team has learned that reviewers move faster when the packet tells a crisp story. Here is the structure we hand new staff so they can prep with confidence.
Build your evidence in this order
- Identity and charter
- Articles of incorporation or association, bylaws, amendments, and proof of adoption.
- EIN confirmation. If you need an EIN, the IRS provides several methods.
- Operations and member economics
- Narrative of how patronage works, who qualifies as a member, and how margins are allocated or retained.
- Policies that show adherence to Section 521 operational tests.
- Financial statements and schedules
- Recent period financials, plus any schedules the instructions request.
- If a representative will deal with the IRS for you, include Form 2848 or 8821.
- Fee and delivery
- Include the correct user fee and follow the current submission method on the IRS site. A wrong fee or missing signature can kick the packet back.
Quick checklist you can print
| Section | What to include | Why it matters |
| Identification | Legal name, EIN, contact | IRS matches your entity across systems. |
| Organizing docs | Articles, bylaws, amendments | Proves you are organized for Section 521 purposes. |
| Operations | Membership and patronage narrative | Shows you operate on a cooperative basis. |
| Financials | Statements and requested schedules | Supports economic substance and tests. |
| Authorization | Form 2848 or 8821 if using a representative | Lets the IRS speak to your agent. |
| Fee | Correct user fee and proof of payment | Avoids immediate rejection or delay. |
Pro tip, label attachments with the form name, the part, and the line item, and include the cooperative’s name and EIN on each attachment. IRS reviewers appreciate packets that are easy to navigate.
Recordkeeping after you file
The IRS instruction language is simple here, keep a copy of the completed application in your permanent records, and keep books and records as long as they may be material to any federal tax administration. If the exemption is recognized, file Form 1120‑C each year.
Texas Form H1028, The Employment Verification You Are Probably Looking For
When someone asks you for “Form 1028” in a hiring, leasing, or lending context, they usually mean Texas Form H1028, the employment verification form. It confirms wages, pay frequency, dates of employment, and employer contact details. You complete it directly from payroll, you sign it, and you return it to the requester. It is not an IRS filing. It is a practical proof document that helps someone underwrite a decision.
Think of H1028 as a snapshot of pay and employment that others can trust. If it is clean, approvals move. If it is sloppy, deals stall.
What H1028 Includes
- Employee identification, full legal name and last four digits of SSN when permitted
- Employment status, active, on leave, or terminated with last day
- Pay details, hourly or salary rate, pay frequency, average weekly hours, overtime eligibility
- Earnings, current pay rate, year to date wages, and any bonuses or commissions requested
- Employer details, legal name, EIN or FEIN, address, phone, and an authorized signer
The core rule, everything must reconcile to payroll. If the number on H1028 does not match the latest pay stub or payroll register, expect a call or a rejection.
Who Usually Requests H1028
- Landlords and property managers during rental screening
- Lenders and loan processors during origination, auto, personal, or mortgage
- State benefit administrators or caseworkers validating income and hours
If your HR team treats every request the same way, you will ship faster and avoid back and forth. Use one inbox, one intake checklist, and one approval path.
How To Complete Texas H1028 Without Rework
I keep a three step routine for my team, gather, confirm, and send. It is simple, it is fast, and it prevents the mistakes that cause second requests.
Step 1, Gather
- Pull the employee profile from HRIS, job title, start date, status
- Pull the latest payroll register, current rate, pay frequency, year to date earnings
- If bonuses or commissions are requested, pull the last completed pay period that shows them
- Confirm the correct mailing address or upload portal for the requester
If a lender or landlord provided their own H1028, use that layout. If not, use the standard Texas H1028 PDF and keep the formatting intact.
Step 2, Confirm
- Verify that the legal business name matches tax records, add DBA if applicable
- Verify EIN and employer address, use a main phone that someone answers
- Check pay frequency and current rate against the most recent payroll cycle
- If the employee recently changed rates or hours, note the effective date in the comments field
- Redact any fields you are not authorized to share, follow your policy and local law
A single mismatch, like listing biweekly when the system shows semimonthly, can trigger a manual review. The fastest way to keep everyone happy is to make line items match the system exactly.
Step 3, Send
- Sign and date as an authorized representative
- Save a clean PDF and name it with employee last name, first name, and the date
- Send it by the method requested, mail or secure upload, avoid phone confirmations
- Document the request in your log, include who asked, what you sent, and when you sent it
Pro tip, keep a short canned note that reminds requesters that phone verifications are not provided, and that all requests must include a signed authorization from the employee when required by your policy.
Required Employer Details, Filled The Right Way
These fields look basic, yet they account for most corrections. I have watched approvals sit for days because a form had the wrong legal name or a dead phone number.
The identity block
- Legal name, exactly as shown on tax records
- DBA or trade name, only in the designated field
- EIN, never a placeholder
- Complete mailing address and, if different, the physical location
- Live phone number and a real inbox for follow ups
The signer block
- Authorized representative’s name and title
- Direct phone and email
- Signature and date, wet ink or approved e‑signature
- If your organization requires it, include a reference number for internal tracking
When in doubt, add a brief description of the business activity. Underwriters use it to understand tipping risk, bonus patterns, or seasonal hours.
Submission, Timing, And Retention
On timing, most underwriters want data no older than 30 to 90 days, and they will ask again if the closing date slips. Keep a log so your team can refresh quickly. On retention, store the request, the signed authorization when required, the completed form, and the proof of delivery. Many employers keep these for at least three years, and some mirror their payroll document retention policy for consistency.
If you handle verifications often, create a five line SOP card, inbox, intake, verify, sign, send, log. Train backups so requests do not stack up when someone is out.
Finally, send only what is asked for. Extra details invite questions and slow decisions. A tight, accurate H1028 is your best friend when someone is waiting on keys or loan documents.
Income Verification In The Wild, Loans, Leases, And Employer Confirmations
You will see income verification pop up in three settings, loans and credit, lease screening, and employer requested confirmations for background checks. The documents are similar, the timing and scrutiny can be very different.
Loans And Credit
Lenders want recent proof that income is stable. Expect to provide pay stubs, W‑2s, and sometimes an employer verification using H1028 or a similar form. Keep the last two or three pay periods on hand, plus last year’s W‑2 if the lender asks. If the employee had a rate change this month, highlight the effective date so the underwriter does not misread the math.
- Match the lender’s window, 30, 60, or 90 days
- Show base pay, then list overtime or bonuses if requested
- Keep bank deposits available if the lender allows them as supporting proof
Lease Or Rental Screening
Most landlords look for simple math, stable income that comfortably covers rent. Many apply a rent to income ratio between two and three times gross monthly rent, then combine it with credit and background checks. If you are the employer completing H1028, confirm status and pay, and return it to the property manager’s address on file.
| Requirement | Typical standard | Evidence that moves fast |
| Income multiple | 2 to 3 times rent | Last 30 to 90 days of pay stubs |
| Stability | No large gaps in deposits | Bank statements if requested |
| Status | Active, not on probation if asked | H1028 or employer letter |
| Timing | Current within 30 to 60 days | Dated signatures and a fresh pay cycle |
Keep it simple, if the form asks for current rate and average hours, provide both. If it asks for year to date, fill it exactly as payroll shows, including cents.
Employer Requested Confirmations
Occasionally, a prospective employer will ask for income proof as part of a background screen. Follow your policy and local law before releasing pay details. If your policy allows it, send an employer letter or the requested form with limited fields, stick to dates, title, and current status unless income is specifically authorized and required.
- Verify the requester’s identity
- Confirm you have the employee’s written consent when required
- Use your standard template and avoid free form answers
Common Mistakes And How To Avoid Them
We keep a short wall list near the payroll desk. It has saved more rework than any new software we have tried.
- Wrong legal name or missing DBA, always confirm against tax setup
- Incorrect pay frequency, semimonthly and biweekly are not the same
- Year to date earnings missing cents, underwriters notice
- Old phone numbers, requesters cannot call back
- No signer title, the form looks unofficial
- Extra information the requester did not ask for, can trigger new questions
A quick audit before you send
- Read every number against the payroll register
- Recheck dates, start date, termination date if applicable
- Confirm status, active, on leave, or terminated
- Make sure the signature is dated the day you send it
Where Accountably Fits, Only When It Truly Helps
Some firms drown in these small yet time sensitive tasks. If verifications, income letters, and benefits forms are clogging the queue, the problem is not the form, it is the delivery system. This is where a disciplined offshore delivery partner can help. At Accountably, we integrate trained teams into your workflow, use your templates, and protect review time with layered quality checks. That means your partners are not stuck in a loop of signatures and rework, and your managers can focus on client outcomes.
The win is predictability, a standard intake, a clean packet every time, and a record you can audit. That is how you keep trust with lenders, landlords, and clients.
We keep mentions of ourselves light in this piece on purpose. The main point is your process, clear, fast, and accurate. If you want help building that process, we can talk when you are ready.
FAQs, Straight Answers You Can Use Today
What is the IRS 1028 tax form?
It is the application a farmers’ cooperative uses to request recognition of exemption under Section 521. You assemble organizing documents, operations detail, financials, and pay the required user fee. Keep a copy in your permanent records and, if approved, file Form 1120‑C each year.
Is there a fee for IRS Form 1028?
Yes. The IRS uses a user fee for determinations. Always check the current amount and payment method on the IRS site before you file, since fees can change and the IRS will reject incomplete submissions.
Who completes a Texas H1028 employment verification?
Your authorized HR or payroll representative completes it. They pull details from the payroll system, sign the form, and send it directly to the requester or provide a stamped, addressed envelope to the employee, based on your policy.
How fast should I return H1028?
Plan for two business days if you have a clean intake process. Lenders and landlords often set tight windows, so a predictable turnaround protects your employee and your reputation.
Can I just email pay stubs instead?
Only if the requester accepts them and your policy allows it. Many underwriters still want employer verified data because pay stubs can be altered. H1028 solves that problem with an employer signature and contact details.
How long should I keep these records?
Match your payroll document policy. Many employers keep verification requests and responses for at least three years. Keep a log with requestor name, date, method, and what you sent.