Has the IRS revoked your tax exempt status? It is very important to file for reinstatement as soon as possible. To protect yourself and your donors.

If the IRS has revoked your tax exempt status then you will be taxed on all donations, including the entire year your status was revoked. Meaning your donors will not be able to write-off their donation. This is very important if you have already collected a donation previously for this year, and then lose your status in the middle of the year. You will be taxed on the previous donations and you must contact those donors and let them know so they do not attempt to write it off on their taxes. You may also have some serious and expensive consequences at the state level too.

Tax Exempt Express experts will work with you to evaluate your current situation and provide a consultation on the corrective action that needs to be taken to reinstate your 501c3 tax exempt status.

Click HERE to start your reinstatement.

POPULAR QUESTIONS

Tax exempt nonprofits are auto-revoked because they have not filed their annual 990 forms for 3 consecutive years.

Being revoked means that your nonprofit is no longer exempt from federal income tax and will have to pay corporate income taxes on your annual revenue, including donations.

In addition, your organization may be subject to paying back taxes and penalties for failure to pay corporate income taxes if the effective date of revocation was in a prior tax year. It may also mean that any state tax exemptions that your nonprofit received – such as exemptions for income tax, property tax, and sales/use tax — that are dependent on federal tax-exempt status, may also be revoked now.

You will need to apply for reinstatement by providing specific documentation; including an application, past 990 statements, a statement of reasonable cause and a user fee. Tax Exempt Express will guide you through the process.

There is no set timetable for reinstatement. Depending on how fast you get your request to the IRS and accurately the paperwork and documentation is filled out, it can take a few months to several months.

Tax Exempt Express charges $1999 (without a coupon) for any tax exempt organization required to file a 990-EZ or 990-N. The cost is $3499 (without a coupon) if your organization has to file a 990 standard form. In addition, the IRS fee is an additional $600.