Transitional Provisions Under Revenue Procedure 2014-11
Note: The Transitional Relief provisions under IRS Notice 2011-43 (issued in 2011) are no longer in effect. However, new Transitional Relief Provisions are available under IRS Revenue Procedure 2014-11.
The Transitional Relief Provisions under Revenue Procedure 2014-11 relate to nonprofit organizations that have lost their tax-exempt status for failure to timely file their required Form 990 on time for three consecutive years. Specifically they apply in two situations as follows:
- A revoked nonprofit has an application for reinstatement of tax-exempt status that is pending as of January 2, 2014.
- A revoked nonprofit has already had its exempt status reinstated as of the date that the application was post-marked to the IRS (not retroactively).
In short, if you have an application that has been filed and is pending approval, the IRS will apply the provisions of Revenue Procedure 2014-11 to your application.
If you’ve applied for reinstatement but were denied retroactive exemption, the IRS is now automatically awarding you retroactive exempt status IF you were a Form 990-N or Form 990-EZ filer.
If you were not a 990-N or 990-EZ filer, the IRS encourages you to “try again,” under new rules which are slightly relaxed. For this second attempt, the IRS does not require that you pay the normal application fee. The fee is waived. BUT you must apply on or before May 2, 2014.
If this affects you, read the entire Revenue Procedure 2014-11 here. (link opens a PDF file on the IRS web site.)
Visit the IRS web site to read the entire Rev. Proc. 2014-11. (link will open a pdf file from www.irs.gov).