Tax-Exempt Status Re-Application & Reinstatement Process
The Situation
Your not-for-profit public charity organization may have lost its tax-exempt status. This often happens when an organization fails to file the required 990 Annual tax form with the IRS for three successive years. Additionally, the IRS sends a revocation letter to one of your officers with the specific revocation date.
The Auto-Revocation List
The IRS publishes a list of organizations that have lost their federal tax-exempt status automatically. This occurs after failing to file Form 990 (or a related notice) for three consecutive years. You can view and search this list on Exempt Organizations Select Check (EO Select Check). The list includes each organization's name, employer identification number (EIN), exemption type, last known address, revocation effective date, and the date posted on IRS.gov. Furthermore, users can download the list directly from EO Select Check.
Scope of the Problem
Over 10,000 organizations in Massachusetts alone lost their tax-exempt status during 2010 and 2011. Similarly, the IRS revoked the status of tens of thousands of not-for-profit organizations across the United States. This includes many organizations in New England and New York states.
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
Foxboro Consulting Group, Inc. can help your organization regain its tax-exempt status. We offer a structured "Tax-Exempt Status Re-Application & Reinstatement Process" that has successfully assisted numerous charitable organizations.
The reinstatement process typically takes 2-3 months. However, the timeline depends on how quickly your organization can assemble the necessary financial data and organizational documents. We submit these materials to the IRS as part of the application.
During the process, we communicate directly with IRS officials, answer their questions, and provide any additional documentation they request.
We offer a free on-site consultation to explain the process in detail. We would like to meet with you or the appropriate officer(s) of your organization at your convenience. Our team has a proven track record of successfully helping numerous not-for-profit organizations obtain reinstatement of their tax-exempt status.
