Tax-Exempt Status Re-Application & Reinstatement Process
The Situation: A not-for profit public charity organization has lost its tax-exempt status probably for failing to file the required 990 Annual tax form with the Internal Revenue Service (IRS) for three successive years. We understand that your non-profit, charitable organization may have lost its tax exempt status. We understand that the Internal Revenue Service revoked the tax-exempt status on a specific date detailed in a letter to one of the officers in your organization.
The IRS publishes a list of organizations that have had their federal tax-exempt status automatically revoked for failing to file an annual Form 990 information return or notice with the IRS for three consecutive years (Auto-Revocation List). The Auto-Revocation List may be viewed and searched on Exempt Organizations Select Check (EO Select Check). The Auto-Revocation List provides the organization’s name; employer identification number (EIN), exemption type, last known address, effective date of revocation and the date the organization’s name was posted on IRS.gov. Users can also download the Auto-Revocation List using EO Select Check.
Over 10,000 similar organizations in Massachusetts alone have had their tax-exempt status revoked during 2010 and 2011. For instance, we recognize that the IRS has revoked the tax-exempt status of tens of thousands of not-for profit organizations across the United States including those organizations in the following New England and New York states alone:
- New York – over 30,000 not-for profit organizations had their tax-exempt status revoked,
- Massachusetts – 10,496 not-for profit organizations,
- Connecticut – 5,025 not-for profit organizations,
- Maine – 1,998 not-for profit organizations,
- New Hampshire – 1,734 not-for profit organizations,
- Rhode Island – 1,536 not-for profit organizations, and
- Vermont – 1,316 not-for profit organizations.
We realize the seriousness, and the dramatic consequences of these events:
- Your organization will no longer be able to receive donations, which are tax deductible to the donor, and may be in fact treated as taxable income to your organization;
- Your organization is now liable for both Federal and state income tax on profits as a for-profit entity;
- Thousands of needy recipients will no longer receive important charitable benefits from these organizations, and
- Your organization can now be assessed both real estate tax and state excise tax on facilities that you may own by the respective cities & towns, and state governments.
Foxboro Consulting Group, Inc. – Solution
We can assist your organization in obtaining a re-instatement of its tax-exempt status through our “Tax Exempt Status Re-Application & Reinstatement Process”.
We have successfully accomplished this for numerous other charitable organizations. The “Tax-Exempt Status Re-Application & Reinstatement Process” typically takes approximately 2-3 months to accomplish, depending on your organizations responsiveness in assembling the necessary financial data and organization documents, which will be submitted to the IRS as part of the Tax-Exempt Status Re-Application & Re-Instatement Process.
During the Tax Exempt Status Re-Application & Reinstatement Process, we will communicate and work with IRS officials, and answer any questions that they have, as well as provide additional documentation that will be requested.
We can inform you about this process during a free on-site consultation. We would like to meet with you, or the appropriate officer/or officials of your organization at your convenience, to discuss the Tax-Exempt Status Re-Application & Reinstatement Process. We have successfully assisted numerous not-for profit organizations obtain reinstatement of the organizations’ tax-exempt status.