Tax Exempt Reinstatement
Get Your 501(c)(3) Status Back Fast with Hassle-Free IRS Reinstatement
Expertise
Navigating the typical application package, often 50-100 pages, can be overwhelming. Our deep understanding of the non-profit tax code ensures that every detail is handled with precision. We provide the highest level of care and attention to each client with an agent on call 24/7, delivering fast and reliable reinstatement every time.
Affordability
We understand that every dollar counts for nonprofits, which is why we offer the cheapest reinstatement services available. Not only will we price match any other quote, we'll discount it another 10%. Without sacrificing quality and speed, you get your tax-exempt status back without the financial strain.
Speed
We streamline the process from start to finish, handling all the necessary accounting and preparation so you don't have to. No headaches, no stress—just fast results that keep your nonprofit moving forward. We guarantee all missing 990s and the final application will be ready to file within 2 weeks.
Why Choose Cano?
The retroactive reinstatement process can generally be broken into two parts: The First Step is preparing the missing form 990s. Cano dives into your organization's financials, categorizes each transaction with high attention to detail, and timely prepares each 990. The Second Step is preparing the reinstatement application (1023 or 1024). Cano handles the complexities of the application, gathering the necessary documents, narrative descriptions, and organizational details required to prove your organization qualifies for reinstatement.
The Cano Solution
Typically, non-profits will lose their tax-exempt status because they have failed to file an annual Form 990 to the IRS for 3 consecutive years. This form doesn't mean you are paying taxes. It's just reporting your financials to the IRS. The IRS will then send the organization a letter notifying that its exempt status has been automatically revoked. From the date of revocation, the organization has 15 months to file for retroactive reinstatement.
The Problem
Frequently Asked Questions
There are 4 different options for reinstatement:
1. Streamlined Retroactive Reinstatement: This option is for organizations that have never had their exempt status revoked, make less than $200,000 in gross receipts annually, and are within the 15 month reinstatement window. The IRS tends to process this option the fastest.
2. Retroactive Reinstatement (Within 15 months): Normal retroactive reinstatement is very similar to streamlined reinstatement. The key difference is that this option is available for organizations who do not qualify for streamlined reinstatement, but are within the 15 month window. Additionally a reasonable cause statement is required for at least one of the 3 years that the 990s were missed.
3. Retroactive Reinstatement (Outside 15 months): If you are outside of the 15 month reinstatement window you can still file for retroactive reinstatement, but you must provide a reasonable cause statement for each year where an annual return was not filed. This includes subsequent years outside of the initial 3 years that led to revocation.
4. Post Mark Date Reinstatement: This option is available for organizations not looking to be retroactively reinstated. You do not need to file the missing 990s, only the 1023 or 1024 application.
Retroactive Reinstatement means that your organization's tax status is restored back to the date that it was revoked. The IRS would then treat your organization as if it had never lost its status in the years between reinstatement and the first missed annual return. This is different from Post Mark Reinstatement as this implies a restoration of exempt status at the date of the new application.
Determining whether your organization requires Form 1023 or Form 1024 is contingent upon its original designation as a nonprofit. This should be shown on your original letter of determination from the IRS. If you can't find that letter, no worries. Just give us a call and we can help.
Failing to reinstate your nonprofit’s tax-exempt status comes with serious consequences. First, your organization could be subject to federal income taxes, piling on more financial strain. Additionally, your donors will no longer be able to write off their contributions, potentially discouraging future donations and reducing funding. Without reinstatement, you’re also faced with navigating a complex learning curve full of IRS forms and compliance rules, taking valuable time away from your organization’s goals. Our services help you avoid these pitfalls by simplifying the process, ensuring your nonprofit stays compliant, tax-exempt, and focused on its mission.