Chances are, if you’ve formed a 501(c)(3) charity and let its operations fall by the wayside your tax-exempt status has been revoked by the IRS. It used to be that if your charity had little to no revenues each year, that you were exempt from filing any annual tax returns. However, in 2006, the law changed and required that ALL tax-exempt entities file an annual tax return (either a Form 990, 990EZ, or 990N). The law further provided that if you did not file the requisite returns for three consecutive years your tax-exempt status would be revoked. Unfortunately, many charities did not get the news and have now had their tax-exempt status revoked.
Fortunately, the IRS has provided a mechanism whereby these revoked charities can have their tax-exempt status reinstated. Generally the process is layed out in Rev. Proc. 2014-11 and requires the charity to re-submit its Application for Tax-Exempt Status Form 1023. If you apply within 15 months of the posted date of revocation, you can qualify for “stream-lined” review. However, if your application is past the 15 month period, than you will have to prepare additional paperwork explaining why you had “reasonable cause” for not filing the annual returns.
If your status has been revoked then you should promptly seek professional advice.