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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: 8 months ago.Category: Tax
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Answered in 17 minutes by:
9/26/2017
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 8 months ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,223
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

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 8 months ago

Please let me know what questions you have from here

...

Lane

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