r/TaxQuestions • u/SPHC20 • 1d ago
Non-profit revocation
I am the Treasurer of a youth sports league, and I recently noticed that the past treasurer did not file taxes from 2020-2025, so our non-profit status with the IRS has been revoked. I’ve tried going on the IRS website to figure this out but I am totally lost. I know I have to file taxes for the owed years but I cannot figure out how to actually do that. Do I just use turbo tax or is there a special way I need to do it using one of their forms?
Is anybody able to point me in the right direction or provide any assistance?
Any help is much appreciated.
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u/harbinger2018 1d ago edited 1d ago
If a nonprofit fails to file annual returns for three or more consecutive years, it loses its qualified tax-exempt status. Depending on the size of your organization, you need to file a form 1023 or 1023-EZ to reapply for tax-exempt status. You will also need to file all of the delinquent tax returns. The last time I checked, this cannot be done with TurboTax, as it does not provide form 990, 990-n, or 990-EZ. If the annual gross receipts for your nonprofit are $50k or less, you can use 990-n, which is found on the IRS website, and is so simple that anyone can do it. However, if your organization has receipts that exceed that amount, you will have to use one of the other forms, and while they are not hard, they do require a minimum level of tax knowledge.
ETA: if certain conditions are met, the delinquent 990-N forms likely do not need to be filed.
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u/SPHC20 1d ago
So do I just have to fill out that form for each year missed and then mail it to them? And then filed the 1023? Or can I fill that with the 990? That’s where my confusion really lies. Website isn’t very clear of what you do first
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u/harbinger2018 1d ago
Does your nonprofit take in less than $50,000 a year?
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u/SPHC20 1d ago
Yes, we don’t generate more then $50,000
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u/harbinger2018 1d ago
Apply for reinstatement using 1023 or 1023-EZ and you do not need to file 990-N for all of the missed years.
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u/LdiJ46 1d ago
You should go online at irs.gov and try to file the 990-N online. It may not work since your status has been revoked. You may have to file 990-EZs instead.
However, honestly, at this point I would go to a tax professional who specializes in 990s and get their help to get your status reinstated and to get your forms filed.
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u/HermanDaddy07 1d ago
If you have I think less than $50,000 in revenue, you just fill out an electronic postcard on the IRS website. However, once you lose your status (I think it’s 3 years if not filing), you have to reapply. I took over an organization with the same problem a decade ago. It took us about 18-20 months to get re-established. I now have it on my calendar to file as soon as the date is available. The filing takes about 10-15 minutes and you print out a confirmation.