IRS Guidance on Application for Reinstatement of Tax-Exempt Status
Internal Revenue Bulletin 2011:25, Notice 2011-44 provides guidance for organizations with annual gross receipts of over $50,000 that wish to apply for reinstatement of their tax-exempt status following automatic revocation for failure to file returns for three consecutive years.
An organization seeking reinstatement must apply using the same forms that are filed by all other applicants for tax exemption. (For example, an organization seeking reinstatement under Section 501(c)(3) must submit Form 1023.) The organization must do so regardless of whether it was originally required to apply for recognition of tax exemption. All filing organizations must pay the appropriate user fee. An organization that wishes to have its tax-exempt status reinstated effective from the date of automatic revocation must submit a request for retroactive reinstatement with the application, presenting facts to support the organization's claim for "reasonable cause" for failing to file.
For more detailed information, see Notice 2011-44 at http://www.irs.gov/irb/2011-25_IRB/ar10.html
Transitional Relief for "Small" Organizations
Internal Revenue Bulletin 2011:25, Notice 2011-43 provides guidance for transitional relief for "small" organizations—those with annual gross receipts of not more than $50,000 in their most recent taxable year—that have lost their tax-exempt status for failure to file a Form 990-N e-Postcard for tax years beginning in 2007, 2008 and 2009.
The IRS will treat small organizations as having established reasonable cause for failing to file if they meet each of the following criteria:
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The tax-exempt status of small organizations that meet these criteria will be reinstated retroactive to the date the tax-exempt status was automatically revoked.
For more detailed information, see Notice 2011-43 at http://www.irs.gov/irb/2011-25_IRB/ar09.html