Understanding the IRS Revocation List
The IRS Revocation List is a database of organizations that have lost their tax-exempt status due to non-compliance with IRS regulations. This list is updated monthly and is available to the public, allowing donors and other stakeholders to verify an organization's tax-exempt status.
Organizations may be removed from the list if they can demonstrate that they have come into compliance with all applicable tax laws and regulations. This may involve filing delinquent tax returns, paying any outstanding taxes or penalties, and providing documentation to support their exempt status.
Causes of IRS Revocation
The most common cause of IRS revocation is failure to file annual information returns, such as Form 990, for three consecutive years. Other causes of revocation include failure to pay employment taxes, failure to file or pay other taxes, and engaging in prohibited activities such as excessive lobbying or political campaign intervention.
In some cases, an organization's tax-exempt status may be revoked due to a change in its purpose or activities, which may no longer qualify for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code.
Searching the IRS Revocation List
The IRS provides an online search tool, known as the Exempt Organizations Business Master File (EOBMF), which allows users to search for organizations by name, Employer Identification Number (EIN), or location. This tool is updated monthly and provides information on an organization's tax-exempt status, including any revocations or reinstatements.
Donors and other stakeholders can use this tool to verify an organization's tax-exempt status before making a donation or engaging in other transactions with the organization.
Reinstatement Process
To have its tax-exempt status reinstated, an organization must submit an application to the IRS, which includes filing Form 1023 or Form 1024, depending on the type of organization. The organization must also provide documentation to support its exempt status, including its articles of incorporation, bylaws, and financial statements.
The IRS will review the application and may request additional information or documentation before making a determination on the organization's exempt status. If the application is approved, the organization's tax-exempt status will be retroactive to the date of revocation.
Maintaining Tax-Exempt Status
To maintain its tax-exempt status, an organization must comply with all applicable tax laws and regulations, including filing annual information returns and paying any required taxes or fees. The organization must also maintain accurate and complete records, including financial statements and governance documents.
Organizations should also be aware of any changes to tax laws or regulations that may affect their exempt status, and take steps to ensure compliance with these changes. This may involve consulting with a tax professional or seeking guidance from the IRS.
Frequently Asked Questions
What is the IRS Revocation List and how can I search it?
The IRS Revocation List is a database of organizations that have lost their tax-exempt status. You can search the list using the Exempt Organizations Business Master File (EOBMF) online tool.
Why would an organization's tax-exempt status be revoked?
An organization's tax-exempt status may be revoked due to non-compliance with IRS regulations, such as failure to file annual information returns or pay employment taxes.
How can an organization have its tax-exempt status reinstated?
To have its tax-exempt status reinstated, an organization must submit an application to the IRS, including filing Form 1023 or Form 1024, and providing documentation to support its exempt status.
What is the Exempt Organizations Business Master File (EOBMF)?
The EOBMF is an online search tool provided by the IRS that allows users to search for organizations by name, EIN, or location, and provides information on an organization's tax-exempt status.
Can an organization's tax-exempt status be retroactive?
Yes, if an organization's application for reinstatement is approved, its tax-exempt status will be retroactive to the date of revocation.
How can I verify an organization's tax-exempt status before making a donation?
You can verify an organization's tax-exempt status by searching the Exempt Organizations Business Master File (EOBMF) online tool or by contacting the organization directly to request documentation of its exempt status.