Automatic Exemption Revocation for Non-Filing: Tax and Penalties on Income Tax Returns for an Organization Whose Exempt Status Is Reinstated


My organization’s tax-exempt status was automatically revoked, and I paid income taxes or received a delinquency or penalty notice for the period that my organization was no longer exempt. Now that the IRS has reinstated my organization’s tax-exempt status, how do I request an abatement of the penalties or refund of tax paid with respect to an income tax return?

The organization should send a letter requesting a removal of the tax and/or abatement of the penalty, explaining that it was not liable because the organization’s tax-exempt status was reinstated for part or all of the period covered by the income tax return or delinquency or penalty notice. The organization should include with the letter a copy of its new determination letter reinstating its tax exemption. If the organization already filed the taxable return and paid the tax or penalty, it should file an amended income tax return and request a refund.

The organization should send the letter to the IRS address where the organization filed, or should have filed, its original income tax return. The address will be indicated on the notice the organization received regarding the tax or penalty.

Include the organization’s contact information in case the IRS has any questions.