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Tuesday, May 13, 2014

IRS Lightens Up On Retroactive Reinstatement | The NonProfit TimesThe NonProfit Times

IRS Lightens Up On Retroactive Reinstatement | The NonProfit TimesThe NonProfit Times: "he prior requirement for showing reasonable cause for all three years was onerous because what the IRS might let slide in the first year might not be acceptable in the second and third. “(Organizations) would say, ‘we’re short-staffed, we were new,’ all kinds of things that would work the first time around,” he said. “If you fail to file one year, the IRS would probably say it’s alright, but if you fail to file two or three in a row, they’ll say you need to get your act together.”

Many organizations whose status is automatically revoked are probably defunct, said Shuster. “A lot of organizations, they get an idea they want to start a nonprofit, they pursue it for a while, then they give it up and don’t bother filing returns or let their status lapse,” he said."



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