Automatic Revocation of Tax-Exempt Status

1 Automatic Revocation of Tax-Exempt Status Most Tax-Exempt organizations other than churches and These organizations should write on the top of the Form certain church-related organizations are required to file 1023 or Form 1024, Revenue Procedure 2014-11, an annual information return or notice with the IRS. Streamlined Retroactive Reinstatement, and mail the application and user fee to: Organizations that do not file for three consecutive years automatically lose their Tax-Exempt Status . An Automatic Internal Revenue Service Revocation is effective on the original filing due date of the Box 12192.

2 Third annual return or notice. Covington, KY 41012-0192. The List of Automatically Revoked The Service will not impose the Section 6652(c) penalty Organizations is Posted on the IRS Website for failure to file annual returns for the three consecutive The IRS publishes on its website the list of organizations taxable years that caused the organization to be whose Tax-Exempt Status was automatically revoked revoked if the organization is retroactively reinstated because of failure to file a required Form 990, 990- under this procedure and files properly completed EZ, 990-PF or Form 990-N (e-Postcard)

3 For three and executed paper Forms 990-EZ for all such taxable consecutive years. years. (For any year for which the organization was eligible to file a Form 990-N, the organization is not The list (the Revocation List) gives the name, employer required to file a prior year Form 990-N or Form 990- identification number (EIN), organization type, last EZ to avoid penalties.) The organization should write known address the organization provided to the IRS, Retroactive Reinstatement on the Forms 990-EZ and effective date of Revocation and the date the organization mail them to: was added to the list.

4 IRS updates the Revocation List monthly. The IRS also sends a letter (CP-120A) to each Department of the Treasury organization, at its last known address, stating that its Internal Revenue Service exempt Status has been automatically revoked because Ogden, UT 84201-0027. it has not filed a required annual return or notice for three consecutive years. Retroactive Reinstatement Process (Within 15 Months). Organizations that cannot use the Streamlined Retroactive Reinstating Tax-Exempt Status Reinstatement Process (such as those required to file An automatically revoked organization must apply to Form 990 or Form 990-PF for any of the three years that have its Status reinstated, even if the organization was caused Revocation , or those that were previously auto- not originally required to file an application for exemption.)

5 Revoked) may have their Tax-Exempt Status retroactively In Revenue Procedure 2014-11, the IRS explains the four reinstated to the date of Revocation if they: ways to do this: Complete and submit Form 1023 or Form 1024 with the Streamlined Retroactive Reinstatement appropriate user fee not later than 15 months after the Organizations that were eligible to file 990-EZ or 990-N later of the date of the organization's Revocation letter (ePostcard) for the three years that caused their Revocation (CP-120A), or the date the organization appeared on the may have their Tax-Exempt Status retroactively reinstated Revocation List on the IRS website.

6 To the date of Revocation if they: Include with the application a statement establishing Have not previously had their Tax-Exempt Status that the organization had reasonable cause for its automatically revoked. failure to file a required annual return for at least one of the three consecutive years for which it failed to file. Complete and submit Form 1023 or Form 1024 with the Include with the application a statement confirming that it has filed required returns for those three years and for appropriate user fee not later than 15 months after the any other taxable years after that period and before the later of the date of the organization's Revocation letter post-mark date of the application for which required (CP-120A), or the date the organization appeared on returns were due and not filed.

7 The Revocation List on the IRS website. Publication 4991 (Rev. 2-2014) Catalog Number 59459X Department of the Treasury Internal Revenue Service File properly completed and executed paper annual and user fee to: returns for the three consecutive years that caused the Internal Revenue Service Revocation and for any following years. The organization Box 12192. should write Retroactive Reinstatement on these Covington, KY 41012-0192. returns and mail them to: The Effect of Losing Tax-Exempt Status Department of the Treasury Internal Revenue Service Center If an organization's Tax-Exempt Status is automatically Ogden, UT 84201-0027 revoked, it is no longer exempt from federal income tax.

8 Consequently, it may be required to file one of the These organizations should write on the top of the Form following federal income tax returns and pay applicable 1023 or Form 1024, Revenue Procedure 2014-11, income taxes: Retroactive Reinstatement, and mail the application and user fee to: Form 1120, Corporation Income Tax Return, due by the 15th day of the 3rd month after the end of the Internal Revenue Service organization's tax year, or Form 1041, Income Tax Box 12192 Return for Estates and Trusts, due by the 15th day of the Covington, KY 41012-0192 4th month after the end of your organization's tax year.

9 If the organization is retroactively reinstated under this A Section 501(c)(3) organization that is automatically procedure, the IRS will not impose the Section 6652(c) revoked is not eligible to receive tax-deductible charitable penalty for failure to file annual returns for the three contributions and will be removed from the cumulative consecutive taxable years that caused the organization list of Tax-Exempt organizations eligible to receive tax- to be revoked. deductible charitable contributions, exempt Organization Select Check (Pub 78 database). Retroactive Reinstatement (After 15 Months).

10 Organizations that apply for reinstatement more than 15 Donors can deduct contributions made before an months after the later of the date of the organization's organization's name appears on the Automatic Revocation Revocation letter (CP-120A), or the date the organization List. Tax-deductible contributions may be made to an appeared on the Revocation List on the IRS website may organization whose Tax-Exempt Status is subsequently have their Tax-Exempt Status retroactively reinstated to reinstated. the date of Revocation if they: State and local laws may affect an organization that loses Satisfy all of the requirements described under the its Tax-Exempt Status as well.