The IRS has now revoked the tax-exempt status of approximately 275,000 organizations for failure to file required forms for the past three years. Since the Pension Protection Act of 2006 required an annual filing for all tax-exempt organizations, the IRS has been trying to get the message out. Last year the campaign urged organizations that this was their last chance! If your gross receipts were less than $25,000, all you had to file was a Form 990-N or “e-post-card.” This annual electronic notice is available on the IRS website.
At the same time, the IRS has issued guidance on how to apply for reinstatement of tax-exempt status! So if your organization has not filed any annual notice or form for 2007, 2008 or 2009, and are on the IRS revocation list, you have a fourth chance! If you don’t take this opportunity, your organization can no longer receive tax-deductible contributions and you are considered a taxable entity.
Small organizations, those with gross receipts less than $50,000, are eligible to apply for reinstatement for a reduced user fee of $100. You can request retroactive reinstatement, and applications are due by December 31, 2012. The IRS is certainly being patient!