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My nonprofit lost its tax exemption status, I did not submit…

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Hi! My nonprofit lost...

Hi! My nonprofit lost its tax exemption status, I did not submit 990 form for 3 years. The org was not doing well as a nonprofit and I would like to change the business to for profit with the same mission. Is this possible? Should I pay the revocation fees or proceed with the for profit status?

Accountant's Assistant: Can you tell me where the nonprofit is registered?

Charlotte, north Carolina

Accountant's Assistant: Has anything been officially filed? If so, what?

No

Submitted: 10 months ago.Category: Tax
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Answered in 17 minutes by:
9/26/2017
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 10 months ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,867
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Yes, that's certainly one way to go. Another way that might be "cleaner," going forward, would be to pay the revocation fees and simply dissolve, then set up a new corporation.

...

If you pay the fees, one thing you'll need to do to keep the resulting FOR profit entity tax compliant is file the appropriate FOR-profit returns for those years. (from the effective date of the revocation)

...

If you are a corporation that will be form 1120, if an S-Corp 1120-S, if a single owner entity, you may not HAVE an issue, as sole proprietors and single-member LLC's simply file a schedule C with an individual return. If there was no profit at all, there's nothing to report for those years.

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 10 months ago

Please let me know what questions you have from here

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Lane

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