Automatic Revocation of 501(c)(3)
Has the IRS revoked your tax-exempt status? We know this can be a stressful situation, do not worry; we can help you through it. At CharityNet USA, we have helped thousands of Nonprofits get reinstated, and over 30,000 receive their 501(c)(3) tax exemption status.
About a half a million tax-exempt entities have had their 501 statuses revoked due to failure to file their tax form 990s for three consecutive years. The procedure to reinstate this status is different based on the organization’s unique circumstances, including what states they are in.
Understanding 501(c)3 Reinstatement and Automatic Revocation
If a 501(c)(3) organization has not filed its annual tax returns for 3 consecutive years, they risk losing their tax-exempt status with the IRS. In fact, the IRS will automatically revoke the status for non-compliance. This is often referred to as auto-revocation. If the organization wishes to be reinstated with the IRS as a 501(c)(3) tax-exempt organization, it must file an updated application for exemption and pay the appropriate fees.
Your 501(c)(3) Status Reinstated
To get your organization reinstated, it must reapply for 501(c)(3) tax exempt status with a new 1023 form and filing fee, and back file all missing tax returns since tax exempt status was revoked.
There are four ways to be reinstated:
- Streamlined Retroactive Reinstatement
- Retroactive Reinstatement (within 15 months of revocation)
- Retroactive Reinstatement (over 15 months past revocation)
- Post-mark Date Reinstatement
If the IRS determines the organization has fulfilled all compliance requirements to meet the tax-exempt status again, they will issue a new 501(c)(3) determination letter. Your donors and others may rely upon the new IRS determination letter as of its stated effective.
How can CharityNet USA help toward your reinstatement?
- A dedicated Nonprofit Specialist will assess your organization’s tax-exemption revocation impacts at a state and federal level.
- Together we will review and discuss your current situation.
- Provide expert advice and a plan of action to regain status.
- Prepare your reinstatement documents to regain your 501(c)(3) status.
- Prepare and file past tax 990 forms by mail
- Prepare all state documents to ensure compliance with your state(s).
- We will present your case to the IRS and answer any questions on your behalf.
- We address any remaining compliance concerns.
Did you know?
If your organization lost the tax-exempt status, it will be placed on their automatic revocation list. The automatic revocation list is an IRS official record of organizations whose tax-exempt status has been automatically revoked for failing to file a required return or notice for three consecutive years. For organizations that applied for and received reinstatement, the list gives the date of reinstatement.
Give us a call today to get your organization back in compliance with the IRS
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