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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