Baker Tilly helps charity get back tax-exempt status

Our client’s need

A not-for-profit entity was created to advance a particular career for minority professionals. The organization’s tax-exempt status, however, was revoked by the IRS for failure to file annual information returns for three consecutive years. Because of the revocation, the organization could no longer receive tax-deductible contributions from donors, which greatly affected its ability to raise funds to further its charitable mission.

Baker Tilly’s solution

Baker Tilly’s IRS practice and procedures team worked with the organization to gather previous submissions with the IRS and determined that it did not, in fact, fail to file information returns for three consecutive years. We prepared a submission to the IRS, providing supporting documentation as to why the IRS should reinstate the client’s tax-exempt status and issue an Erroneous Revocation Letter.

Results

As a result of Baker Tilly’s work, our client received an Erroneous Revocation Letter from the IRS stating that the client’s tax-exempt status should not have been revoked and it was reinstated immediately, effective to the date of revocation. The organization could immediately begin to receive tax-deductible contributions from donors once again and continue to advance its charitable mission.

For more information on this topic, or to learn how Baker Tilly tax specialists can help, contact our team.


The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.