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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 738
Experience:  Certified Public Accountant
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A nonprofit organization just lost its 501c3 status because

Customer Question

A nonprofit organization just lost its 501c3 status because it missed filing 3 consecutive tax returns. However, it was only founded in 2014, so at most it could have only filed 2 tax returns. We would like to avoid the reinstatement process, which requires a lot of forms and and a $400 fee. Is there a way we can appeal the revocation with less red tape?
Submitted: 1 month ago.
Category: Tax
Expert:  Mark Taylor replied 1 month ago.

Hi, my name is Mark. I will be happy to help you with your questions. The IRS automatically revoked 501c3 status if a company misses 3 consecutive tax filings. If the automatic revocation was proper there is no way to appeal the revocation. In your case, it is not possible for the entity to have missed 3 tax filings. I would appeal the revocation based on this fact.

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Customer: replied 1 month ago.
What would be the procedure for this? Or should we just file the two outstanding 990Ns and see what happens? The organization has never filed a 990-type form so in theory it has no firm FYE. Ever hear of this situation before?
Expert:  Mark Taylor replied 1 month ago.

I have heard of the automatic revocation but not if you have been in existence for less than 3 years. I would prepare the outstanding returns and appeal the revocation based on the fact that you have not been in existence for three years.

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