Responding to Loss of Tax Exempt Status: Automatic Revocation and For-Cause Termination
Current and Retroactive Reinstatement, Notification Requirements and Filing Obligations
Recording of a 110-minute CPE webinar with Q&A
This course will provide advisers to nonprofit and exempt organizations with a guide to responding to and remedying loss of tax exempt status. The panel will highlight risk areas for exempt status termination, discuss reinstating 501(c)(3) exemption status due to inadvertent lapses, detail how to challenge incorrect termination of exempt status, describe steps needed to restore exempt status on a retroactive basis, and outline interim actions during the process of reinstating 501(c)(3) exemption. The panel will also offer insight on alternative strategies in instances where reinstatement may not be feasible or desirable.
Outline
- Most common causes of loss of tax exempt status
- Impact of revocation and actions needed during lapse period
- Verifying state status as nonprofit corporation
- Notifying donors of loss of exempt status
- Additional tax filing requirements
- Impact on private foundation donors
- Automatic revocation
- Categories of automatically revoked exempt organizations
- Rev. Proc. 2014-11
- Requesting reinstatement
- Retroactive reinstatement and streamlined procedures
- Challenging “for cause” revocation
Benefits
The panel will discuss these and other important topics:
- IRS resources to verify that an exempt organization’s 501(c)(3) status has not been revoked
- Grounds for automatic revocation of tax exempt status
- How to claim retroactive reinstatement of exempt status
- Challenging loss of tax exempt status for reasons other than automatic revocation due to non-filing
- What an exempt organization must do upon notification of loss of exempt status
Faculty
Louis E. Michelson
Law Offices of Louis E. Michelson
Mr. Michelson focuses his practice on income tax planning, charitable giving and other federal, state and local... | Read More
Mr. Michelson focuses his practice on income tax planning, charitable giving and other federal, state and local taxation issues for individuals, corporations and tax-exempt organizations. He advises public charities, private foundations, religious and educational organizations, and other nonprofit organizations on issues of formation, management, joint ventures, planned giving and board governance. He also has extensive experience with income tax planning for business transactions and estate planning.
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Sally R. Wagenmaker
Attorney
Wagenmaker & Oberly
Ms. Wagenmaker provides legal counsel in corporate, tax, employment, and real estate matters for nonprofits operating... | Read More
Ms. Wagenmaker provides legal counsel in corporate, tax, employment, and real estate matters for nonprofits operating on local, national, and international levels. Her clients include churches and other religious organizations, social service providers, and schools. Her corporate and tax work includes development of new tax-exempt entities, providing guidance for effective nonprofit governance and other operational legal issues. In addition, she represents clients in property tax exemption matters for charitable, religious, and educational purposes, shared occupancy arrangements, and property transfers.
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Shirley McLaughlin
Atty
Adler & Colvin
Ms. McLaughlin specializes in formation and tax-exempt status, public charities, private foundations, grantmaking and... | Read More
Ms. McLaughlin specializes in formation and tax-exempt status, public charities, private foundations, grantmaking and social investing, social enterprise, nonprofit structures, relationships and affiliations, and international charitable transactions and operations. Prior to joining the firm, she was a Director of Grants Administration for two of the largest community foundations in the country.
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