Contact UsMy non-profit organization just lost its tax-exempt status? We have been a non-profit for the past five years. What do we do now?
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Tax Professional Answers
JEANIE PITNER
1) Find the correspondence letter from the IRS that would of been mailed out with a reason that the tax exempt status has been revoked.
2) If the revocation is something such as: They neglected to file the tax returns for the non profit - The exempt status can be reinstated - This may entail filling all tax returns from inception to date. Refilling the 501 3 (c) application, paying its fee; and including an explanation that what ever the failure was will not happen again and what steps have been taken to ensure your compliance. In my experience most tax payers will receive some type of notice that will go unanswered.
3) I would contact a professional, have the letter to review and then offer suggestions on what your next steps can be if the organization can be reinstated.
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581 weeks ago
2) If the revocation is something such as: They neglected to file the tax returns for the non profit - The exempt status can be reinstated - This may entail filling all tax returns from inception to date. Refilling the 501 3 (c) application, paying its fee; and including an explanation that what ever the failure was will not happen again and what steps have been taken to ensure your compliance. In my experience most tax payers will receive some type of notice that will go unanswered.
3) I would contact a professional, have the letter to review and then offer suggestions on what your next steps can be if the organization can be reinstated.
Susan Harke
I find this is a common issue with non-profits without a Board Member with some tax background. I have also found that many people who form a non-profit do not realize how much governmental reporting work the status brings.
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572 weeks ago