Question: The Bonsai Club of Westerly, a §501(c)(3) organization, neglected to file its Form 990-N, Electronic Notice (e-Postcard), for three years. Consequently, the IRS revoked its tax-exempt status. Tom, the club’s treasurer, wants to get the status reinstated. What should he do?
Answer: The Bonsai Club must apply for reinstatement of its tax-exempt status using Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code. This is the same form used initially to request non-profit status. A streamlined version of Form 1023, also exists, Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code. Use the Form 1023-EZ Eligibility Worksheet to determine eligibility. If the application is approved, the entity’s date of reinstatement will generally be the filing date of the application.
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Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing.