Lost your 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 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If your organization has not filed any of the 990/990EZ/990N forms for three years, it is likely your tax exempt status was revoked.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OK, I think our tax exempt status was revoked!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 can help. We 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 HomeschoolCPA to set up a phone call.

What will this cost me?

My fees for reinstating tax exempt status are:

Consultation by phone $100 per hour. Contact me.

Prepare Form 1023-EZ (organizations with annual gross income of $50,000 or less may be eligible for Form 1023-EZ): Includes verifying your eligibility to use the shorter Form 1023-EZ, and verifying that your organizing documents fulfill the IRS requirements: My fee $400. The IRS fee is an additional $275.

If you prefer to do it yourself, this webinar 501c3 Application for Homeschool Nonprofits will explain how to do that.

Prepare Form 1023: (for organizations not eligible to use the shorter Form 1023-EZ) Includes verifying that your organizing documents fulfill the IRS requirements. My fee is approximately $850, The IRS charges an additional $600 fee.

Prior Year(s) Form 990/990EZ Annual Information Return:
I no longer prepare the Form 990s, but I can refer you to a CPA who can assist you. Contact me.

Carol Topp, CPA



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