Exempt Status Revoked? Here’s How to Get it Back
Tax exemption provides relief to the organization from property and income taxation and extends the charitable deduction to donors of the organization. Minimum filing requirements, such as an annual information return, are required of organizations other than churches and certain church-related entities. As difficult as it is to obtain tax exemption, the IRS has revoked tax exemption of approximately 275,000 entities nationally because they failed to follow the minimum filing requirements. Active organizations in this situation may be subject to additional income tax filings, withholding, taxes and/or penalties. The IRS has posted a list in spreadsheet form, searchable by state, that includes the name, employer identification number (EIN), organization (subsection) code, and last known address for these revoked organizations, and is available here http://www.irs.gov/charities/article/0,,id=239696,00.html.
While many on the list have closed or dissolved, for those who desire to continue operating, there is a process to reinstate tax exemption. Details can be found here http://www.irs.gov/charities/article/0,,id=221600,00.html. We can assist with these steps, which include resubmitting the application with applicable fee (reduced fee available for smaller organizations), written statements, completed information returns, and a signed declaration.