If your organization’s 501(c)(3)  tax-exempt status has been automatically revoked, don’t worry it can be reinstated. Your organization must file a new Form 1023 application for exemption and pay the appropriate user fee. Certain formerly tax-exempt organizations may qualify for a reduced fee of $100 and retroactive reinstatement of exempt status, but only if you apply for reinstatement before December 31, 2012.

If the IRS determines that your organization qualifies for reinstatement of its tax-exempt status, it will issue a new determination letter once again making it exempt from federal income tax under section 501(a) of the Internal Revenue Code as an exempt organization described in section 501(c)(3).

This IRS video describes the reinstatement process, including a program to help small organizations regain their exempt status.

Please email us to ask a Tax-Exempt specialist.