Louis E. Michelson, A Professional Corporation

Providing Legal and Tax Advisory Services to Nonprofit Organizations

Automatic Revocation

Automatic Revocation of Exemption List

Most tax-exempt organizations are required to file an annual return or notice with the Internal Revenue Service.  Section 6033(j) of the Internal Revenue Code automatically revokes the exemption of any organization that fails to satisfy its filing requirement for three consecutive years. The automatic revocation of exemption is effective as of the due date of the third required annual filing or notice.  For the balance of this post see the following link.

Automatic Revocation of Exemption:  In Error

Background: The Pension Protection Act of 2006 made two important changes affecting tax-exempt organizations, effective the beginning of 2007.  First, it requires all tax-exempt organizations, other than churches and church-related organizations, must file an annual return with the IRS. That includes small tax exempt organizations with gross receipts of $25,000 or less and had not previously had a filing requirement (the threshold is currently $50,000 or less). They now are required to submit a Form 990-N, also known as an e-Postcard. Second, it mandates that any tax-exempt organization that fails to file for three consecutive years automatically loses it federal tax-exempt status.  For the balance of this post see the following link


Reinstated Exemption and Publication 78

The IRS recently clarified the delay between the time an organization has its exemption reinstated and when Publication 78 is updated.    For balance of post see the following link.


Free Instructional Webinar

To view a webinar “How to Rescue a Troubled Nonprofit: Federal Income Tax Considerations”: see the following link.