IRS Revokes Tax Exemption of 275,000 Nonprofits
But, you can get it back!
On June 8, 2011, the IRS released its much-anticipated initial list of nonprofits that have automatically lost tax-exempt status due to non-filing of Form 990 for three consecutive years. And this was just the first list…it is updated every month to include new, unfortunate inclusions.
If your organization is on that list, here’s what it means to you:
- The effective date of the revocation is May 15, 2010 (yes, it is retroactive!)
- Donations to your nonprofit are no longer tax-deductible to the donor
- Your organization is now liable for federal corporate taxes
- You may now have serious, expensive consequences in your state
The ramifications for those on the list couldn’t be more critical.
How To Get Your 501(c)(3) Status Back
In order to restore your nonprofit’s tax-exemption, you must prepare and file a new Form 1023. This process will be more complicated than the first time for many organizations due to the nature of their past activities. If doing it yourself initially was not the best idea, it certainly isn’t this time.
We’re here to help. No other firm in the country has successfully guided as many nonprofits through the 501(c)(3) process as Foundation Group: over 12,000 with 100% approval. We know this process and have established a methodology and repore with the IRS that ensures your approval.
Don’t wait. Give us a call and let’s get started on restoring your organization’s 501(c)(3) status.
