Reinstate revoked tax exempt status

Did your nonprofit organization lose your tax exempt status?

What’s this all about?

In 2010, the IRS has begun revoking the tax-exempt status nonprofit organizations that failed to file a Form 990/990EZ or 990N for three years.

A large number of these organizations are small nonprofits that were not required to file an annual Form 990 because their gross revenues were $50,000 or less and didn’t know about the new IRS requirement.

If your organization has not filed any of the 990/990EZ/990N forms for three years, it is likely your tax exempt status was revoked.

How will I know if my organization has lost its tax-exempt status?

The IRS may have sent a letter. If not, read more here…

OK, I think our tax exempt status was revoked! Now what?

Don’t panic. The IRS has a procedure to get your tax exempt status reinstated. It involves paperwork (the IRS loves paper) and filing fees of $275, $400 or $850.

Here’s a flowchart I designed to explain the IRS procedure in pictures.

We need help getting through this!

I can help. I offer a phone consultation with your board or leaders to discuss where you are, what options your have what it will cost to get your tax exempt status reinstated. Contact me to set up a phone call.

It’s helpful to me if you fill in this questionnaire.

What will this cost me?

My fees for reinstating tax exempt status are:

Consultation to determine your tax exempt status and the process to get reinstated. This is usually a 30-60 minute phone call to discuss your organization’s history, tax exempt revocation, and which option for reinstatement is best for your organization. $75/hour.

Prepare Form 1023-EZ: (organizations with annual gross income of $50,000 or less may be eligible for Form 1023-EZ): Includes determining your eligibility to use the IRS streamlined reinstatement and Form 1023-EZ and verifying your organizing documents fulfill the IRS requirements: $250 plus IRS fee ($275) paid to the IRS directly.

Prepare Form 1023: According to IRS Revenue Procedure 2014-11, some organization may need to file the longer Form 1023. Includes verifying your organizing documents fulfill the IRS requirements and required IRS statements. $750 plus IRS fee ($400 or $850) paid to the IRS directly.

Prior Year(s) Form 990 or 990-EZ Annual Information Return:
Annual gross income less than $200,000: $400 per return
Annual gross income more than $200,000: $600-$750 per return

 

Carol Topp, CPA

 

 

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