I am a member of a nonprofit 503(c) incorporated organization in California that had it's tax exemption status automatically revoked. I have been told that in order to get back our tax exemption status we would be required to pay a user fee in addition to retroactively filing returns for the previous years. I was wondering if it would be possible to simply retroactively file returns for the missed years?

ANSWER

The BIDaWIZ Team's Answer:

Theoretically, you could proceed that way. However, you would have to dissolve the existing tax-exempt organization and incorporate under a new charter. The fees and timing for doing such, would likely be as much, if not more than utilizing the streamlined retroactive reinstatement. The new Revenue Procedure 2014-11 provides tax-exempt organizations with the ability to retroactively reinstate their status by submitting Form 1023 with the appropriate user fee not later than 15 months after the later of the date of the organization's Revocation Letter (CP-120A).