IRS reinstates 501c3 status for homeschool music program

I am so pleased and relieved to announce that First Colony Homeschool Ensembles (FCHA) in Texas has had their 501c3 tax exempt status reinstated!

This case was particularly complex.

Over a year ago FCHA contacted me. FCHA had applied for and been granted 501c3 status back in 2016, but the CPA helping them incorrectly told the IRS that FCHA was a private foundation. They are not; they are a public charity because their support comes from member families, not a single wealthy individual.

Additionally, FCHA had no idea they needed to file annual reports with the IRS (the CPA never told them), so their 501c3 status was revoked after three years in 2020. We hoped that the IRS would reinstate FCHA’s 501c3 status and reclassify them as a public charity at the same time. Otherwise, FCHA was looking at a hefty $500 fee to get the private foundation classification corrected and may have to file prior year tax returns as well. 🙁

I had not tried to both reinstate 501c3 status AND switch to public charity at the same time.

But it worked! After a long wait (9 months) the IRS requested additional information which FCHA promptly and easily gave them, and the IRS reinstated 501c3 status and correctly classified FCHA as a public charity!

It was a long, slow process, but ended as we hoped! Now FCHA can continue serving homeschool families in Texas assured they are correctly classified as a 501c3 tax exempt organization.

Does your homeschool group need help with applying for 501c3 tax exempt status? HomeschoolCPA is here to help. Start by reading The IRS and Your Homeschool Organization.

Have questions? Contact us today and we can set up a phone or Zoom consultation.

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