What is it?

501(c)(3) Reinstatement

What is it? 501(c)(3)

501(c)(3) Reinstatement

What is it? 501(c)(3) reinstatement is the process of restoring an organization’s tax-exempt status after it has been revoked by the IRS. This can occur if the organization fails to file required annual returns or if it fails to comply with other IRS regulations.

Why is it Needed? Reinstatement is necessary to regain the benefits of tax-exempt status, including exemption from federal income tax and the ability for donors to claim tax deductions for contributions.

What is Required to Reinstated:

1. Application: File IRS Form 1023 or 1023-EZ, as appropriate, to reapply for tax-exempt status.

2. Pay Fees: Pay the applicable user fees for the application process.

3. Provide Documentation: Submit all required documentation, including detailed financial records, a statement of activities since revocation, and a current copy of the organization’s governing documents.

4. Compliance: Ensure that the organization has met all compliance requirements,
including any outstanding tax returns or reports.

By addressing these aspects, organizations can navigate the complexities of nonprofit regulations, maintain compliance, and effectively manage their operations.

Make an appointment with CNH to discuss your reinstatement. We will provide you with customized solutions and fill the gaps of what may be missing resulting in you losing your tax-exempt status in the first place.

Types of IRS Form 990

1. Form 990

Who Files: Most large 501(c)(3) organizations with gross receipts of over $200,000 or total assets over $500,000.

Why: Provides detailed financial information, including revenue, expenses, and assets. It also includes information about the organization’s mission, governance, and compliance with tax-exempt requirements.

2. Form 990-EZ

Who Files: Smaller 501(c)(3) organizations with gross receipts between $50,000 and $200,000 and total assets less than $500,000.

Why: Offers a simplified version of Form 990, requiring less detail but still providing essential financial and operational information.

3. Form 990-N (e-Postcard)

Who Files: Tiny 501(c)(3) organizations with gross receipts of $50,000 or less.

Why: A streamlined form that requires minimal information and is filed electronically. It is intended to provide a simple way for smaller organizations to comply with annual reporting requirements.

4. Form 990-PF

Who Files: Private foundations are a type of 501(c)(3) organization that typically makes grants rather than operates its programs.

Why: Details the foundation’s financial activities, including income, expenses, and grants. It also includes information about its operations and compliance.