Lindquist, von Husen & Joyce LLP.

  • About
    • Mission & Values
    • Leadership
    • BKR International
    • Our History
  • Services
    • Audit & Attestation
    • Tax
    • Business Advisory & Other Services
  • Expertise
    • Affordable Housing & Real Estate
    • Not-For-Profits
    • Individuals & Families
    • Closely Held Businesses
    • Client Success Stories
  • Resources
    • Blog
    • Tax Guide
  • News & Events
    • Firm News
    • Events
    • Industry News
  • Careers
    • Benefits
    • Professional Development
    • Life at LvHJ
    • Meet Our People
    • Open Positions
  • Contact
  • Client Portal

Client Portal

Forgot password?

How Nonprofits Can Regain Their Tax-Exempt Status

February 07, 2018   |   Posted in: Not For Profit

Thousands of not-for-profits lose their tax-exempt status every year because they’ve neglected to file required annual forms with the IRS for three consecutive years. Fortunately, if your organization is on the revocation list, you can re-attain your exempt status by following the proper steps.

File the right form

Assuming you lost your exempt status due to one of these automatic revocations, you can regain your status by filing:

  • Form 1023,“Application for Recognition of Exemption Under Section 501(c)(3),” or
  • Form 1024,“Application for Recognition of Exemption Under Section 501(a).”

Unless you apply for retroactive reinstatement, all of your organization’s activities between the revocation and the reinstatement date will be considered taxable. Thus, all contributions made during that period won’t be deductible by donors.

You may apply for retroactive reinstatement, effective the date of the automatic revocation, by filing the applicable form within 15 months or the later of the date of 1) the IRS revocation letter, or 2) the date the IRS posted your organization’s name on its website.

Support your application

When you file the form, you must attach the following five items:

  1. A detailed statement that provides reasonable cause for failing to file required returns in each of the three consecutive years. It should state the facts that led to each failure and the continual failure, discovery of the failures and steps taken to avoid or mitigate them.
  2. A statement that describes safeguards put in place and steps taken to avoid future failures.
  3. Evidence to support all material aspects of those two statements.
  4. Properly completed and executed paper tax returns for all taxable years during and after the three-year period your organization failed to file.
  5. An original declaration dated and signed by an authorized person such as an officer or director. (See IRS Notice 2011-44 for the required wording.)

To expedite your application, write “AUTOMATICALLY REVOKED” on the top of the form and envelope and include the specified fee.

Make it the priority

Without your tax-exempt status, you’re likely to lose donations and other funding. Be sure to make reinstatement a top priority. Contact us for more information and help with the process.

© 2018


Recent Posts

  • Prepare for Your Regional Center’s New Audit Team
  • Wondering what to include on your resume?
  • 3 Tips to Help Your Board Members Succeed
  • Due for an Audit? Identify Issues Sooner Not Later
  • Update Your CTCAC Compliance Forms

Categories

  • Affordable Housing
  • Business Advisory Services
  • Case Studies
  • Charitable Giving
  • Individual Tax
  • Not For Profit
  • Professional Development
  • Tax Laws
  • Timely News
  • Uncategorized

Archives

  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • June 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017

Tags

Affordable Housing affordable housing financial statement audits Blog Blog Post board management California Careers charitable donations compensation major gifts Not for Profit Professional Development retirement planning succession tax Tax Credit Compliance tax reform

Connect with us on

  • About
  • Services
  • Expertise
  • Resources
  • News & Events
  • Careers
  • Contact
  • Client Portal
©2022 Lindquist, von Husen & Joyce LLP. All Rights Reserved.