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Article | Nonprofit, Tax

Premature IRS Notices Revoking Tax-Exempt Status

2020-10-26T17:45:43-05:00 Amy Dalen, JDAmy Dalen, JD

The IRS announced on Thursday that it had sent premature notices to nonprofits indicating that their tax-exempt status had been revoked, citing their inability to change the due date within their systems. The tax-exempt status of nonprofit organizations is automatically revoked if the organization does not file a tax return (Form 990 series) for three consecutive years. This year, some organizations received this notice after they failed to file a tax return by the filing deadline of May 15, 2020, even though an extension to July 15, 2020, had been granted due to the pandemic.

The IRS indicated that it is working with organizations that received premature notices, and it has established a dedicated fax number, 855-247-6123, to receive filings from tax-exempt organizations. The IRS is also processing returns that were paper filed by the extended due date.

Please contact your HBK tax advisor if your organization received a notice that the tax-exempt status has been revoked, or if you have any questions or concerns.

About the Author(s)

Amy is a Principal and the Chair of the Tax Advisory Group at HBK CPAs & Consultants. The Tax Advisory Group is a group of highly specialized professionals who provide tax training to our team members, oversee compliance with tax policies in order to mitigate risk to the firm, and provide tax planning and consulting services for our clients.

Amy is the Co-National Director of the Nonprofit Solutions group. She also leads the HBK's diversity and inclusion initiative.

Amy specializes in estate, gift, trust, individual, and nonprofit taxation. She is skilled at researching complicated tax issues, consulting on complex estate plans, and providing guidance for our clients to ensure they are in compliance with their tax filing responsibilities.

Amy enjoys sharing her knowledge and passion for tax planning with clients and other professionals. She is a frequent speaker at bar association and estate planning council events, and has authored many articles discussing tax planning techniques and compliance issues.

Hill, Barth & King LLC has prepared this material for informational purposes only. Any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or under any state or local tax law or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Please do not hesitate to contact us if you have any questions regarding the matter.

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