What it means
Your organization's tax-exempt status was revoked because it did not file a required return or notice for three consecutive years.
Respond within
The date on the notice
What to send
An application for reinstatement (Form 1023 or 1024 with the user fee), and the missing returns.
When to get help
Get help. Reinstatement retroactive to the revocation date is possible under specific procedures, and donors need to know the status.

What the letter says

Three missed Forms 990, 990-EZ, or 990-N and the exemption is gone by operation of law. The organization is now a taxable entity and donations are not deductible until reinstatement.

What to do

Apply for reinstatement. Small organizations that were eligible for the 990-N or 990-EZ and apply within 15 months may get retroactive reinstatement with a simplified procedure. Others need a reasonable cause statement for the missed years. File the missing returns with the application.

What to gather

  • The notice
  • The organization's determination letter
  • The last three years of financial records
  • Form 1023 or 1024

Write back

The Reasonable cause statement tool builds the response in the order the IRS reads it. Fill it in, review it, print it, and send it with copies of the documents above and the notice stub on top.

Before you send anything

This is general information, not tax advice. Situations differ. Check with your tax advisor before you send anything. Nothing on this page creates a client relationship.

Sources

  1. IRS, Understanding your IRS notice or letter
  2. IRS, Understanding your CP261 notice
  3. IRS, Automatic revocation of exemption