What is Automatic Revocation?
In 2006, Congress enacted a law (section 6033(j) of the Internal Revenue Code) that requires the IRS to revoke the tax exempt status of non-profit organizations that have failed to file a required annual return for three consecutive years. As of December, 2017, this law had led the IRS to revoke the tax exempt status of more than three quarters of a million (761,794) non-profit organizations.
Prepare Your Own 501(c)(3) Application has 17 pages of information on reinstatement after automatic revocation.
Automatic revocation should be viewed as an opportunity to do some organizational soul-searching. Have there been positive steps toward the accomplishment of the organization's goals since it was created? Does the progress that has been made justify the organization's continued existence? Organizations that have decided it is worthwhile to re-apply to regain their exempt status after automatic revocation need to know the following:
In 2013, The National Taxpayer Advocate found that, "...the IRS makes reinstatement of an organization’s exempt status following automatic revocation unnecessarily burdensome." Doubtless, the introduction of the Streamlined Form 1023-EZ in 2014 relieved some of that burden. As of October 10, 2016, the IRS had reinstated nearly 80,000 automatically revoked organizations. (We do not, however, know the total number of organizations that applied for reinstatement.)
For those who cannot use Form 1023-EZ to apply for reinstatement, it may be easier to recycle an earlier application, rather than starting from scratch.
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Prepare Your Own 501(c)(3) Application has 17 pages of information on reinstatement after automatic revocation
Reinstatement After Automatic Revocation
Form 1023 Paperwork, In Millions of Hours, 1986 to 2016
Source: U.S. Office of Management and Budget. Click image to learn more.
Real Help With Your 501(c)(3) Application
Prepare Your Own 501(c)(3) Application
By Sandy Deja © 2019 374 pages ISBN 978-1-7340724-0-2
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