Exempt Organization Annual Reporting Requirements: Reinstating Exemption After Revocation for Non-Filing

Can an organization have its tax-exempt status reinstated if it was revoked for failing to file for three consecutive years?

Yes, but you must apply (or reapply) and pay the appropriate user fee to have your tax-exempt status reinstated if it was revoked because you failed to file for three consecutive years. An exemption application is required even if your organization was not originally required to file an application.  Reinstatement of exempt status, if the application is approved, will generally be effective the date the application was filed; however reinstatement may be retroactive to the date of revocation if the organization shows that it had reasonable cause for not filing for three consecutive years. See Rev. Proc. 2014-11 for an explanation of “reasonable cause” and information on how to request reinstatement of exemption back to the effective date of automatic revocation. 

To apply (or reapply) for tax-exempt status as a section 501(c)(3) organization, use Form 1023, Application for Recognition of Exemption, or Form 1023-EZ, Streamlined Application for Recognition of Exemption, as applicable. To apply (or reapply) for exemption under section 501(c)(4), use Form 1024-A, Application for Recognition of Exemption under Section 501(c)(4). Use Form 1024, Application for Exemption under Section 501(a) for most other types of tax-exempt organizations.