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 of nonprofit organizations that failed to file a Form 990/990EZ or 990N for three years.
A large number of these organizations were small nonprofits that were not required to file an annual Form 990 because their gross revenues were $50,000 or less and many 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If your organization has not filed any of the 990/990EZ/990N forms for three years, it is likely your tax exempt status was revoked.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…
Or you can look up your organization by its name or EIN (Employer Identification Number) on the IRS Exempt Organization database.
OK, I think our tax exempt status was revoked!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 or $600.
Here’s a flowchart I designed to explain the IRS procedure in pictures.
We need help getting through this!
HomeschoolCPA’s recommended consultants can help. These qualified homeschool consultants and organizations offer a phone consultation with your board or leaders to discuss where you are, what options you have and what it will cost to get your tax exempt status reinstated. They can help you prepare IRS Form 1023-EZ (organizations with annual gross income of $50,000 or less may be eligible for Form 1023-EZ).
What will this cost me? The IRS fee is is $275plus professional assistance (typically ranges form $400-$1,000+)
If you prefer to do it yourself, this webinar 501c3 Application for Homeschool Nonprofits will explain how to do file the Form 1023-EZ to get 501c3 status reinstated.
This 90 minute webinar 501c3 Application for Homeschool Nonprofits will explain the pros and cons of tax exempt status, what is needed before applying for tax exempt status, the cost and steps to take, and an explanation of the IRS Form 1023-EZ line-by-line. All created for homeschool groups by CPA Carol Topp.
Carol Topp, CPA
HomeschoolCPA.com