Welcome Guest. Register Now!  


Non-Profit Organisation Non Profit Organisation


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 06-22-2011, 01:24 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,417
Blog Entries: 3
How can a Tax-Exempt Organization apply for Reinstatement with the IRS?

The Pension Protection Act of 2006 "requires tax-exempt organizations to file annual information returns." Furthermore, the tax law also revokes the tax-exempt status for any organization that "fails to file required returns for three consecutive years."

The IRS has reported approximately "275,000 organizations have lost their tax-exempt status because they did not file the required annual reports for three consecutive years." Fortunately, these organizations still in operation can apply for reinstatement with the IRS.

How does an Organization apply for reinstatement with the IRS?
Per the IRS, "an organization wishing to reinstate its tax-exempt status must file an application for exemption and pay the appropriate user fee even if it was not required to apply for exempt status initially."

The IRS has stated that "Organizations with annual gross receipts of $50,000 or less for 2010 can pay a reduced application fee of $100 instead of the typical $400 or $850 fee." Further, the IRS has stated "that the effective date of reinstatement will be the date the exemption application was submitted to the IRS and retroactive reinstatements must be requested at the time of application and will be granted under limited circumstances."

In additions, all Organizations applying for reinstatement should write “Automatically Revoked” on the top of their application.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
The IRS Reminds Tax-Exempt Organizations of All Sizes to File the Form 990 on Time to Preserve Their Tax Exempt Status Samatg Tax News 0 01-21-2010 02:56 PM
IRS Issues Exempt Organization Update Samatg Tax News 0 02-12-2009 08:54 PM
What is the UBI Tax that is applicable to the Non Profit Organization? sarah Non-Profit Organisation 1 05-02-2008 11:46 PM
What is the penalty for failure to file Tax-Exempt Organization tax return? TaxGuru Non-Profit Organisation 0 01-09-2008 06:37 PM
Startup or Organization expenses? chrisk C-Corporation 1 02-09-2007 12:11 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.