Nonprofits, Loss of Tax-Exempt Status, & Other IRS Notices
At Abelaj Law, P.C., we provide ongoing support to help nonprofits secure, keep, or regain tax-exempt status.
Tax-exempt status is not a one-time application—it is an ongoing compliance duty. Boards must ensure filings are submitted timely and finances are overseen responsibly. Failure to do so may result in loss of tax-exempt status, which can require significant cost and time to regain.
A common emergency scenario is automatic revocation: failure to file a Form 990 for three consecutive years automatically revokes tax-exempt status. Reinstatement typically requires coordinated work between legal and accounting advisors.
Urgent Tax Situations Include
IRS notices regarding excise taxes
Unrelated Business Income inquiries
Private benefit/private inurement concerns
Examinations/audits
New York or New Jersey Attorney General Notices
A notice from the AG’s Office comes with similar risks and required steps, but with state-specific laws rather than federal. We help organizations approach these issues carefully, with 15 years of experience assisting New York and New Jersey nonprofits.
How Abelaj Law, P.C. Can Help
We advise nonprofits on how to move forward after an IRS notice or revocation. Our work includes reviewing the notice and the underlying facts, identifying governance or documentation gaps that may have contributed, and helping develop a strategy for reapplication/reinstatement if tax-exempt status has been revoked. We also represent organizations in IRS or state examinations or audits and coordinate with the organization’s accountant to assess tax consequences and keep reporting aligned.
Helpful documents to have at hand
- IRS notices/letters
- Recent Form 990 filings (or non-filing history)
- Key governance documents and minutes,
- Financial statements
- Any transactions that may raise excise tax or private benefit questions
Request a Consultation
At Abelaj Law, P.C., we work closely with nonprofit boards and leadership to provide thoughtful, individualized guidance at moments that call for judgment, discretion, and clarity.
Whether your organization is navigating a sensitive governance matter, responding to regulatory scrutiny, addressing funding concerns, or considering a significant structural change, we are available to help you evaluate next steps and move forward in a way that protects both your mission and your reputation.
Or call us at: 212-328-9568