Service 03

Determination Reinstatement

Helping you get your tax-exempt status back.

Revoked Doesn't Mean Finished

When a nonprofit fails to file its required Form 990 for three consecutive years, the IRS automatically revokes its federal tax-exempt status. This is not a warning — it is an immediate, automatic action with serious consequences for your organization's fundraising, funding eligibility, and public standing.

But revocation is not the end of your organization. Thousands of nonprofits have successfully reinstated their tax-exempt status, and the process — while detailed — is entirely navigable with the right guidance.

We guide your organization through the full reinstatement process, from the initial assessment of your eligibility to the submission of your application and the receipt of your new IRS Determination Letter. We also prepare any delinquent Form 990 returns required as part of the application.

How Revocation Happens

Under IRS rules, any tax-exempt organization that fails to file a required annual return for three consecutive years automatically loses its federal tax-exempt status — effective on the due date of the third missed filing.

The IRS publishes a list of automatically revoked organizations. Once your organization appears on that list, donors, grantmakers, and the public can see that your status has been revoked.

Consequences of Losing Your Determination

Automatic revocation has immediate, far-reaching consequences that affect every aspect of your organization's operations and sustainability.

Donations are no longer tax-deductible to donors — a critical blow to fundraising

The organization may owe federal income tax on all revenue received during the revocation period

Eligibility for most foundation grants and government funding is suspended

The organization is removed from the IRS Tax Exempt Organization Search database

State tax-exempt status may also be affected, depending on the state

Board members and leadership may face reputational and fiduciary concerns

Three Reinstatement Pathways

The IRS offers different reinstatement procedures depending on your organization's size and how much time has passed since revocation. We assess your situation and pursue the most favorable pathway available.

Most Favorable

Streamlined Retroactive Reinstatement

Who Qualifies

Small organizations eligible to file Form 990-N (gross receipts ≤ $50,000) that apply within 15 months of the revocation date

Key Benefit

Fastest processing; reduced IRS user fee; retroactive effective date if approved

Application Form

Form 1023-EZ or Form 1023 (as applicable)

Deadline

Within 15 months of revocation

Standard Retroactive Reinstatement

Who Qualifies

Any organization applying within 15 months of the revocation date, regardless of size

Key Benefit

Retroactive effective date if approved; full exempt status restored from original revocation date

Application Form

Form 1023 or Form 1024 (as applicable)

Deadline

Within 15 months of revocation

Post-15-Month Reinstatement

Who Qualifies

Organizations applying after the 15-month window has closed

Key Benefit

Reinstatement is still possible, but the effective date will be the date the new application is approved — creating a gap in exempt status

Application Form

Form 1023 or Form 1024 (as applicable)

Deadline

No deadline — but the longer you wait, the larger the gap

What's Included in Our Reinstatement Service

We handle the entire reinstatement process — from the first assessment to the final Determination Letter — and we set you up to stay compliant going forward.

Full assessment of your organization's filing history and revocation circumstances

Determination of the correct reinstatement pathway and IRS user fee

Preparation of the reinstatement application (Form 1023 or Form 1023-EZ)

Drafting of a reasonable cause statement explaining the filing lapse

Preparation of all delinquent Form 990 returns required as part of the application

Compilation of all required supporting documentation

Submission of the complete reinstatement package to the IRS

Post-reinstatement compliance calendar to prevent future lapses

Guidance on any state-level filings affected by the federal revocation

Has Your Status Been Revoked?

The sooner you act, the more reinstatement options are available to you. Contact us today for a free assessment of your organization's situation.

Start the Process