Did the IRS Revoke Your Nonprofit’s Tax-Exempt Status?
The IRS can automatically revoke a nonprofit’s tax-exempt status when it does not file the required annual return or notice for three years in a row.
This can create serious problems for your organization. Your nonprofit may have trouble with grants, donors, contracts, banking, and other tax-exempt activities.
The first step is to find out exactly what happened. Then you can determine what needs to be done.
Why Does the IRS Revoke 501(c)(3) Status?
One of the most common reasons is failure to file required IRS returns or notices.
Missing Form 990 Filings
Most tax-exempt organizations must file Form 990, Form 990-EZ, Form 990-N, or another required return each year.
Three Year of Missing Filings
An organization that fails to file for three consecutive years can have its federal tax-exempt status automatically revoked.
The Nonprofit May Not Know
Some nonprofits do not learn about the revocation until they apply for a grant, talk with a donor, open a bank account, or review their IRS records.
What Can Happen After IRS Revocation?
Grants
Some funders may require active tax-exempt status before awarding funds.
Donations
Your organization needs to understand the tax status of donations received during the revocation period.
Contracts
Government agencies and other partners may ask for proof of current tax-exempt status.
Compliance
Your nonprofit may need to address missing returns and other compliance issues.
We Help Nonprofits Work Through the Reinstatement Process
Galloway Tax Express works with nonprofit organizations that need help understanding an IRS revocation and preparing for the next step.
We start with the facts. We review the organization’s tax status, filing history, and available IRS information. Then we help identify the filings and documents that may be needed.
Not sure where to start?
Tell us what happened. We will help you understand your next step.
What We Review
IRS Tax-Exempt Status
We review the organization’s current IRS status and revocation information.
Form 990 Filing History
We look at the organization’s filing history to identify missing or late returns.
Tax Year Informaion
We review the nonprofit’s tax years so the correct filings can be identified.
Organization Information
We review basic organization information needed to move forward.
Reinstatement Requirements
We help determine which IRS reinstatement process may apply based on the organization’s facts.
Our 501(c)(3) Reinstatement Process
Step 1 — Review Your IRS Status
We start by reviewing your nonprofit’s IRS tax-exempt status and revocation information.
Step 2 — Review Your Filing History
We identify the tax years that may be missing or require attention.
Step 3 — Determine the Next Step
We review your situation and determine what reinstatement path may apply.
Step 4 — Prepare Required Filings
We help prepare the required nonprofit tax filings and other documents based on your situation.
Step 5 — Submit the Required Information
We help you move through the filing process and keep your records organized.
Step 6 — Maintain Compliance
After reinstatement, your nonprofit must stay current with its annual IRS filing requirements.