Real Help With Your 501(c)(3) Application
A. . There are three alternatives to filing Form 8940:
1. Do nothing. Your organization will continue to be classified as a private foundation. It is generally considered to be less favorable to be a 501(c)(3) private foundation because:
2. Dissolve/go out of business. I am not a lawyer. Depending on your circumstances, it may be appropriate to consult an attorney. You will need to:
It is worth noting that if your organization fails to file three consecutive required annual returns (form 990-PF for private foundations, even when an organization is wrongly determined to be a private foundation) the IRS will automatically revoke the organization's exempt status.
3. Dissolve and start over. I could not find any IRS guidance saying this approach is not permitted, and a single Revenue Procedure from 2017 actually suggested this approach when an organization already exempt under 501(c)(3) wants exemption under a different 501(c) subsection: "…may seek a determination letter under a different subsection of § 501(c) once it has dissolved and re-formed as a new entity." I am not a lawyer, however. Depending on your circumstances, it may be appropriate to consult an attorney. To dissolve and re-apply, you would need to:
This information is not available in the 2020 revision of Prepare Your Own
Question 9 - Are There Any Alternatives to Filing Form 8940?