12/16/2015

IRS Gaffe Interrupts Non-Profit Certifications

I recently formed a non-profit organization and obtained IRS approval for the entity as a recognized 501(c)(3) entity. Very soon after receiving approval from the IRS, I received a notice from the IRS that the entity's non-profit status was revoked for failure to file annual documents with the IRS for the preceding 3 years. This was absolute nonsense given the entity was only approved for a matter of weeks and was not obligated to file any annual documents with the IRS.

It turns out the IRS has a programming glitch that resulted in many, many non-profit organizations erroneously having their non-profit status revoked. It should be the case that the entities that were wrongly revoked will receive a letter of reinstatement without lapse from the IRS.

A non-profit organization can be a great entity. I am here to help you assess whether a non-profit organization will work for you and, if so, get your organization formed and approved.

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