Reinstate Your Tax-Exempt Status
Nonprofit organizations are held to high standards of accountability. They are required to have a certain level of reporting and public disclosure. A nonprofit that fails to comply with the rules and regulations, could incur penalties or have its tax-exempt status revoked by the IRS. In addition, failure to file an annual tax return for three consecutive years will automatically result in the revocation of your nonprofit’s tax-exempt status.
Consequences of Revocation of Tax-exempt Status
Tax-exempt status revocation means that your nonprofit will now be liable to pay federal income tax and corporate income tax on annual revenue. Your nonprofit will now be liable for:
Penalties and interest
Paying back taxes it failed to pay
Loss of tax-exempt status
Damage to your nonprofit’s reputation which could affect your ability to fundraise
What We Can Do For You
Once you sign up with us, we take the time to understand and assess your particular issue. We contact the IRS to determine why your tax-exempt status was revoked and take the steps that must be taken to have your nonprofit tax-exempt status reinstated.
If there are any past due annual reports, we prepare and submit those to the IRS.
We also file any past due tax returns for exempt organization or Form 990.
We apply for and obtain a tax clearance letter from the IRS. Lastly, we file an application for reinstatement.