Question: Bonsai Club of Westerly, a §501(c)(3) organization, did not file Form 990-N, Email (email), for three years. So the IRS stripped him of his tax-exempt status. Tom, the club’s treasurer, wants to restore status. What should he do?
Answer: Bonsai Club must apply for reinstatement of tax-exempt status using Form 1023, Application for exemption under section 501(c)(3) of the Internal Revenue Code. This is the same form originally used to request nonprofit status. A streamlined version of Form 1023 also exists, Form 1023-EZ, Simplified Application for Exemption Under Section 501(c)(3) of the Internal Revenue Code. Use Form 1023-EZ to determine eligibility. If the application is approved, the organization’s reinstatement date will usually be the date of application.