Avoiding Automatic Revocation, and the Reinstatement Process

For nonprofit organizations, maintaining tax-exempt status isn’t just important—it’s their lifeline. Losing tax exemption can jeopardize their very existence, cutting off access to critical donor support, imposing new tax burdens, and undermining their ability to carry out their mission. The most common cause? Failing to file IRS Form 990 for three consecutive years leads to automatic revocation of tax-exempt status.