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What if your organization is revoked?

The IRS automatically revokes an organization's tax-exempt status if it fails to file IRS tax returns (990-series returns) for three consecutive years. See IRS page: Automatic Exemption Revocation for Non-Filing

What should your organization do if your tax-exempt status is revoked?

Reinstatement. To apply to the IRS to reinstate the tax-exempt status of your current organization, you must file either the IRS Form 1023, Form 1023EZ, or Form 1024. Which form to file is dependent on the type of tax-exempt organization you are and amount of gross receipts.

NOTE: Under a new IRS new streamlined retroactive reinstatement process, organizations are not required to submit the missed IRS Form 990Ns or 990EZs with their reinstatement application. The streamlined process only applies to smaller organizations that qualified to file IRS Form 990N or 990EZ and file for reinstatement within 15 months of the later of their date of revocation or the date the IRS posted their revocation. Larger organizations that failed to file IRS full Form 990 must include the missed returns with their reinstatement Form 1023 application to apply for retroactive reinstatement to the date of the revocation. See IRS Revenue Procedure 2014-11.

More about form 990. IRS Form 990-series returns are due the 15th day of the 5th month following the close of an organization’s fiscal year. One significant benefit of membership in RENOSI™ is that we send several reminders, including at the end of each member’s fiscal year and again in the month the member’s 990 is due. See also IRS Form 990 Help on this website.

It is critically important that clients update their contact information so that they receive these and other important notices.

RENOSI is the leader in helping national organizations set up and manage affiliate chapters. Setting up local, regional and state affiliate chapters is an excellent way to grow your national organization. Managing hundreds and even thousands of chapters, however, is time-consuming and difficult.

Since its inception, RENOSI has provided a simple and stress-free solution to help obtain and maintain tax-exempt status for over 5,500 nonprofits. With the interactive myRENOSI dashboard, our partners can organize their state and federal registrations, allowing our team of experts to help ensure your tax-exempt status is not revoked.

FEATURED BLOG

Group Exemption Management Requires Form 990 – Everyone Must File!

Jack Englund

Sep 14, 2023

Have you ever had a group project where someone just didn’t pull their own weight? It made it harder for everyone else. Maybe you recently took a canoe down the Colorado River with your friend Paul, and when you hit the rapids, Paul just took his paddle out of the water. Or worse, Paul started panicking and flipped the whole canoe over. Managing your group exemption is the ultimate group project. Making sure everyone files form 990 is a major part.

New Rules Are Coming…

When managing your group tax exemption with the IRS, ensuring your subordinate members file their 990-series return every year is like ensuring everyone does their part of the group project. The IRS requires group exemption holders to supervise/control its subordinate chapters. On June 12, 2020, the IRS issued new proposed rules that defined and strengthened this requirement.

Just Keep Paddling!

The newly defined rules require group exemption holders to educate their subordinates on the annual filing requirements of Form 990. This also means that the group exemption holder must obtain, review, and retain a copy of each subordinate 990, each year. The IRS wants to know that Paul, and everyone else, kept their paddles in the water.

What if We Don’t?

This one is simple: In the newly proposed rules, the IRS indicates that if 50% or more of its subordinate organizations do not file their 990, which ultimately leads to the auto-revocation of said subordinate groups, the canoe will likely flip. As a result, the organization will be at risk of losing its group exemption.

Form 990 is Crucial.

Filing your 990, and ensuring that all your subordinate members file their 990 every year, is crucial to the survival of your group exemption. The new rules for group exemption management are coming. When they arrive, the IRS will be looking to enforce their policies and you do not want your organization to be the one that gets caught without a paddle!

Greek Boss is on the road!

Jack here! I’m hitting the road to introduce RENOSI and Greek Boss . So far, I’ve been to 10 states. More travel is coming! I can’t wait to share Greek Boss with more student leaders and Greek Life Advisors!

In late September, the Texas tour takes off! I’ll be visiting Alabama, Louisiana, and traversing the great state of Texas.

Let me know if you’d like me to stop by your school. I can even do a workshop for your students!