Is it possible to have 501(c)3 status reinstated?

The process for reinstatement depends on the reason for revocation and how long ago the revocation occurred. If the revocation was due to failure to file the required annual information returns (Form 990, 990-EZ, or 990-N), then the organization can apply for reinstatement by filing the appropriate form and paying a filing fee. In some cases, past-due 990 returns must be filed prior to submitting the application.

If the revocation was due to other reasons, such as engaging in prohibited activities or excess benefit transactions, then the organization may need to address those issues before applying for reinstatement.

If the revocation occurred within the last 15 months and the organization has continued to operate as if it still had 501(c)3 status, it may be eligible for retroactive reinstatement. Retroactive reinstatement allows the organization to treat the revocation as if it never occurred, and it can continue to operate as a tax-exempt organization. The IRS communicates four ways to have 501(c)(3) status reinstated. Check this page for information on your organization's options.

It's also important to take steps to ensure that the organization remains in compliance with IRS rules and regulations to avoid future revocation.

The reinstatement process can be complicated and time consuming. Let us help! Contact us for assistance or for a free consultation.