How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Mark Taylor Your Own Question
Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2052
Experience:  Certified Public Accountant
Type Your Tax Question Here...
Mark Taylor is online now
A new question is answered every 9 seconds

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: 10 months ago.
Category: Tax
Expert:  Mark Taylor replied 10 months 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.

I hope you found this information to be beneficial. If this answered your question please take a few moments to rate my response. A rating is needed in order for me to receive credit for helping you today. The rating bar is located at the top of the page – ranging from 1 to 5 stars. If you need me to clarify aspect of my response or if there are additional areas of the question that you would like me to consider please let me know. I would be happy to continue the discussion. It has been my pleasure helping you today.

Customer: replied 10 months 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 10 months 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.