Automatic Revocation

IRS Definition

Most tax-exempt organizations other than churches and certain church-related organizations are required to file an annual information return or notice with the IRS.

Organizations that do not file for three consecutive years automatically lose their tax-exempt status. An automatic revocation is effective on the original filing due date of the third annual return or notice.

More from H&R Block

It is crucial for tax-exempt organizations to file the annual return as required. Once the IRS revokes tax-exempt status, there is no appeals process and the organization must file a tax return such as Form 1120 or 1041 until tax-exempt status is reinstated. The organization must reapply to obtain tax-exempt status. This will likely affect the organization at the state level as well.

Learn about unfiled tax-exempt organization returns.

Related Tax Terms

Delinquent Business Returns

Get help from an expert

Your local H&R Block tax pro can look into your issue and deal with the IRS for you.

Schedule a Free Consultation

Or call 855-536-6504

Related Information

How to File Business Back Tax Returns with the IRS

Learn how to file your business back tax returns with the IRS and resolve any related tax issues, such as business back taxes and IRS penalties.

How to Handle Business Tax Return and Account Problems

Learn what to do if the IRS asks for more information to process your business tax return or sends a notice about changes to your business return.

Power of Attorney: It’s How Your Tax Pro Deals with the IRS For You

Learn the three main benefits of engaging a power of attorney to research your IRS account and resolve your tax problems. Get the facts from the experts at H&R Block.

How to Address IRS Business Tax Penalties

Understand the most common types of IRS business tax penalties for filing and paying late, and your possible options for requesting IRS penalty relief.