IRS acknowledges auto-revocation errors
TAX ALERT Â |Â
Authored by RSM US LLP
In the Oct. 26, 2020, Exempt Organizations Update, the IRS acknowledged that some exempt organizations may have received an erroneous auto-revocation notice. Affected organizations can check their status through Tax Exempt Organization Search (TEOS) and contact the IRS via fax at 855.247.6123 to address any concerns.
Section 6033(j) automatically revokes the exempt status of any organization that fails to file its required 990-series notice or return for three consecutive years. The effective date of revocation is the due date of the third return, and the IRS will send a written communication to affected taxpayers.
Due to COVID-19, the IRS automatically extended filings due from April 1 through July 14, 2020, until July 15, 2020. However, the IRS was unable to update its automated systems in a timely manner and generated notices to taxpayers that had previously missed two consecutive filings and would have had a third filing due between April 1 and July 14, 2020.
The IRS believes it prevented any organization that timely filed electronically by July 15, 2020 from appearing on the auto-revocation list posted on its website and in TEOS. However, it is still processing paper filings, which would reverse the auto-revocation for those taxpayers.Â
Correction and communication
Any organization that received an erroneous auto-revocation notice may confirm whether its exempt status is still intact by searching TEOS. If it appears on the auto-revocation list, the taxpayer may submit proof of timely filing to the IRS via a dedicated fax number at 855.247.6123.
This article was written by AlexandraÂ Mitchell, MorganÂ Souza and originally appeared on 2020-10-27.
2020 RSM US LLP. All rights reserved.
The information contained herein is general in nature and based on authorities that are subject to change. RSM US LLP guarantees neither the accuracy nor completeness of any information and is not responsible for any errors or omissions, or for results obtained by others as a result of reliance upon such information. RSM US LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect information contained herein. This publication does not, and is not intended to, provide legal, tax or accounting advice, and readers should consult their tax advisors concerning the application of tax laws to their particular situations. This analysis is not tax advice and is not intended or written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer.
RSM US Alliance provides its members with access to resources of RSM US LLP. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each is separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. Visit rsmus.com/about us for more information regarding RSM US LLP and RSM International. The RSM logo is used under license by RSM US LLP. RSM US Alliance products and services are proprietary to RSM US LLP.
Gallagher, Flynn & Company, LLP is a proud member of the RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.
Our membership in RSM US Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise and technical resources.
For more information on how Gallagher, Flynn & Company, LLP can assist you, please call (802) 863-1331.