In June, the IRS announced that approximately 275,000 organizations lost their tax-exempt status because they did not file required reports for three consecutive years. While the IRS believes most of these organizations are defunct, they have announced special steps to help existing organizations to apply for reinstatement, including retroactive reinstatement.
Those seeking reinstatement must file an application for exemption and pay the appropriate user fee. If the IRS determines that the organization meets the requirements for tax-exempt status, it will issue a new determination letter. The date of reinstatement will be the date that the new application was submitted to the IRS. Under certain limited circumstances, the IRS will grant retroactive reinstatement.
