Streamlined Reinstatement
Some smaller nonprofits qualify for streamlined procedures if they meet specific IRS requirements. It is designed to simplify the process for eligible organizations that were automatically revoked for missed annual filings.
Reinstatement
Lost Your 501(c)(3) Status? Let's Get That Fixed.
If the IRS revoked your 501(c)(3) status, you can apply to have it reinstated by filing Form 1023 or Form 1023-EZ again, along with any delinquent annual returns. Automatic revocation happens when an organization fails to file a required Form 990, 990-EZ, or 990-N for three consecutive years — it is a paperwork lapse, not a finding of wrongdoing. The IRS offers several reinstatement routes, and some restore your exemption retroactively to the revocation date, meaning no gap in your tax-exempt status.
- Attorney-guided
- Flat fees, quoted in writing
- Nationwide service
Avvo Clients’ Choice Award, 2026
“We were so grateful for Breanna’s work for our small non-profit. Kind, clear, and reliable!”
Amy · via Avvo
Read all reviews ›
A prospective client may not obtain the same or similar results.
Get reinstatement help
Tell us what happened. We usually reply the same business day.
Book a free 30-minute callor send a message
Thank you — your message has been sent.
Our team will be in touch shortly. If you would rather pick a time now, book a consultation directly.
Book a ConsultationYou’re not hiring a filing service.You’re working with an attorney.
Legacy Path Law focuses on nonprofit, business, and intellectual property law. Your matter is handled by an attorney — not simply an online filing platform.
The attorneys who will handle your matter
Founding partners Breanna McCarthy and Channing Thomas work in nonprofit and tax-exempt law every day. Breanna is a member of The Florida Bar; Channing is a member of the Virginia State Bar and clerked at the North Carolina Court of Appeals and the Supreme Court of Virginia.
Your matter is handled by an admitted attorney, not an intake team and not a filing service.
Who this is for
Losing exempt status is almost always a paperwork failure rather than a wrongdoing. What matters now is which reinstatement route you qualify for, and how far back it reaches.
This is the right fit
The status is gone and the mission is worth continuing.
- You appear on the IRS Auto-Revocation List after three missed annual returns
- A grantmaker or bank checked and told you before you knew
- The state administratively dissolved the entity for missed annual reports
- You want exemption restored retroactively so the gap years are covered
- The organization is still operating, or is ready to start again
You likely need a different page
Reinstatement may not be the right goal.
- It is genuinely time to close — see dissolution
- You never had exempt status to begin with — see 501(c)(3) formation
- A church — annual filing relief may mean you were never revoked — see church formation
- You also fundraise in other states — see solicitation registration
- You operate in a state you were not formed in — see foreign registration
Which route applies depends on how long ago revocation happened and your filing history. That is the first thing we establish.
We handle
- Confirming the revocation and its date
- Identifying the right reinstatement path
- Preparing delinquent annual returns
- Filing the reinstatement application
- Requesting retroactive reinstatement
- Building a compliance calendar so it doesn't recur
Why nonprofits lose exempt status
By far the most common cause is failing to file a required annual return. Form 990, 990-EZ, or the 990-N e-Postcard, for three consecutive years. When that happens, exemption is revoked automatically by operation of law. There is no warning letter that stops it, and the organization's name appears on the IRS auto-revocation list.
Small, volunteer-run organizations are the most frequently affected. A board changes, the person who handled filings steps down, and no one realizes a return was due, especially organizations small enough that the requirement is just a short electronic notice.
What revocation actually means
Once revoked, the organization is generally treated as a taxable entity. Contributions may no longer be deductible to donors, grant eligibility usually disappears, and state exemptions tied to federal status can be affected as well. That's why acting promptly matters.
The path back
Revocation is not the end of the organization. The IRS provides several routes back, and the right one depends on your nonprofit’s size, how long it has been revoked, and what caused the lapse. The sections below set out the options, the process, and what changes when a firm handles it.
Different Ways to Reinstate
The IRS offers several routes back. Which one applies depends on why the status was lost, when the revocation happened, and whether your organization meets the relevant IRS requirements.
Retroactive Reinstatement
This may restore exempt status back to the date of revocation, so the organization is treated as though its exemption never lapsed. It matters most for nonprofits that kept operating after losing 501(c)(3) status.
Post-Date Reinstatement
Status is restored effective from the date the IRS approves the application. This applies when an organization does not qualify for retroactive treatment, or chooses a different path.
Choosing the right route matters
Filing the wrong application, or leaving the underlying compliance issue unaddressed, can delay reinstatement or create new problems. We determine which route fits before anything is filed. Ask us which applies to your organization.
How Reinstatement Works
Four steps from revoked to restored.
Schedule a Consultation
We discuss your nonprofit’s history and what the revocation is likely to require.
Review Your Records
We analyze your IRS and state records to identify exactly which filings are missing and which reinstatement route fits.
Prepare the IRS Filing
We prepare the reinstatement application, the delinquent returns, and the supporting documents, including a reasonable-cause statement where one is required.
Restore and Stay Compliant
You move forward with renewed tax-exempt status and a simple compliance calendar so the board never faces this again.
Why Use a Law Firm
Why hire a law firm for reinstatement?
When a nonprofit loses its tax-exempt status, the right remedy depends entirely on the organization’s circumstances. The risk of going it alone is not just a rejected application; it is submitting unnecessary or incomplete filings that cost months and leave the original problem in place.
Your nonprofit was created to serve a purpose. Getting the foundation restored properly lets you return your focus to the mission and the community you serve.
What that gets you
- Experienced guidance through the IRS reinstatement process
- Review of IRS and state compliance requirements
- Preparation of the necessary nonprofit documents and filings
- Identifying the issues that caused the loss of exempt status
- A plan to maintain compliance after reinstatement
Reinstatement Questions
Why did my nonprofit lose its tax-exempt status?
The most common reason is failing to file a required annual return (Form 990, 990-EZ, or 990-N) for three consecutive years, which results in automatic revocation by operation of law.
Can a revoked nonprofit be reinstated?
Yes. The IRS provides several reinstatement paths, and in some cases exemption can be reinstated retroactively to the date of revocation if the applicable requirements are met.
Can we keep operating while we fix it?
Organizations often continue their programs during reinstatement, but the tax treatment during the lapse period and what you tell donors both need care. We'll advise on how to handle it.
Do we have to start over as a new organization?
Usually not. Reinstatement restores the existing organization rather than requiring you to dissolve and form a new entity.
Choosing How to Form Your Nonprofit
Forming a nonprofit is two separate jobs: creating the entity under state law, and obtaining federal tax exemption from the IRS. Cheaper routes usually cover the first and leave you the second, which is the part where mistakes are expensive to undo.
| Feature | Do It Yourself | Online Filing Service | Full-Service Law Firm |
|---|---|---|---|
| Cost | Lowest upfront cost | Moderate, with add-on fees | Flat fee, agreed in writing |
| State incorporation | You prepare and file | Filed from a template | Attorney-prepared and filed |
| IRS-required language | Commonly missed | Generic boilerplate | Drafted for your purpose |
| Form 1023 or 1023-EZ | You decide and file | Often an upsell | Eligibility assessed, then filed |
| Bylaws & conflict policy | Downloaded templates | Templates, if included | Drafted for your organization |
| Board composition | No guidance | No guidance | Reviewed against IRS expectations |
| IRS follow-up questions | Handled on your own | Additional fees to assist | Responses included |
| Best for | Experienced founders | Simple, low-budget filings | Getting it right the first time |
Amending organizing documents after filing costs more than drafting them correctly, and a denied application means paying the IRS user fee again.
Related Reading
What Clients Say
Client Review
Google Review
"I highly recommend Legacy Path Law Firm. From the moment they took over our legal matters, their professionalism, responsiveness, and attention to detail were exceptional.
We came to Legacy Path after experiencing significant difficulties with another firm, including important work that had not been properly completed. Legacy Path stepped in, carefully reviewed what had been done, identified the outstanding issues, and took the necessary action to bring the matters to completion.
What impressed me most was their willingness to take ownership of the process. Rather than making excuses or focusing on the problems created by the previous firm, they focused on solutions, communication, and getting the work done correctly.
Their team has been professional, knowledgeable, responsive, and dependable throughout the entire process. After the experience we previously encountered, it was refreshing to work with a law firm that understands the importance of accountability and client service.
I am extremely pleased with the service we received and sincerely appreciate Legacy Path Law Firm for stepping in and successfully completing work that had previously been left unresolved.
I would confidently recommend Legacy Path Law Firm to anyone looking for a legal team that follows through on its commitments and genuinely takes care of its clients."
We came to Legacy Path after experiencing significant difficulties with another firm, including important work that had not been properly completed. Legacy Path stepped in, carefully reviewed what had been done, identified the outstanding issues, and took the necessary action to bring the matters to completion.
What impressed me most was their willingness to take ownership of the process. Rather than making excuses or focusing on the problems created by the previous firm, they focused on solutions, communication, and getting the work done correctly.
Their team has been professional, knowledgeable, responsive, and dependable throughout the entire process. After the experience we previously encountered, it was refreshing to work with a law firm that understands the importance of accountability and client service.
I am extremely pleased with the service we received and sincerely appreciate Legacy Path Law Firm for stepping in and successfully completing work that had previously been left unresolved.
I would confidently recommend Legacy Path Law Firm to anyone looking for a legal team that follows through on its commitments and genuinely takes care of its clients."
★★★★★ Review on Google
Read Full Review
Client Review
An Outstanding Legal Partner
"Breanna was instrumental in helping our nonprofit build a strong legal foundation from the very beginning. She guided us through changing our organization's name, establishing our foreign entity registrations, and navigating the legal requirements that come with a growing national nonprofit.
She took the time to explain complex legal matters in plain language, making sure our board understood every step before moving forward. Her work gave us confidence that our organization was structured correctly and positioned for future growth.
I would highly recommend Breanna to any nonprofit or business looking for an attorney who is professional, thorough, and a trusted advisor. We truly appreciate everything she did to help Latino Professionals in Aerospace get off the ground legally and set us up for long term success."
She took the time to explain complex legal matters in plain language, making sure our board understood every step before moving forward. Her work gave us confidence that our organization was structured correctly and positioned for future growth.
I would highly recommend Breanna to any nonprofit or business looking for an attorney who is professional, thorough, and a trusted advisor. We truly appreciate everything she did to help Latino Professionals in Aerospace get off the ground legally and set us up for long term success."
★★★★★ Review on Avvo
Read Full Review
Client Review
A Trusted Legal Partner for Nearly a Decade
"I've had the pleasure of working with Breanna for nearly a decade, and I can't recommend her highly enough. She was instrumental in helping me properly structure my business and guiding me through securing my trademark, and she's been an invaluable resource ever since.
What I appreciate most is that she's not only incredibly knowledgeable, but also someone I genuinely trust. Anytime a legal question comes up, she's my first call. She takes the time to explain everything clearly, provides practical advice, and always has my best interests in mind.
Having someone in your corner who is responsive, professional, and truly invested in your success is invaluable. Breanna has been exactly that for me, and I wouldn't hesitate to recommend her to anyone looking for an outstanding attorney."
What I appreciate most is that she's not only incredibly knowledgeable, but also someone I genuinely trust. Anytime a legal question comes up, she's my first call. She takes the time to explain everything clearly, provides practical advice, and always has my best interests in mind.
Having someone in your corner who is responsive, professional, and truly invested in your success is invaluable. Breanna has been exactly that for me, and I wouldn't hesitate to recommend her to anyone looking for an outstanding attorney."
★★★★★ Review on Avvo
Read Full Review
Client Review
Exceptional Legal Counsel
"I worked with Breanna for two years supporting my nonprofit and can confidently attest that she is one of the best lawyers in the industry. She is exceptionally thorough, highly responsive, and brings an outstanding level of attention to detail to every matter.
Breanna is also thoughtful, strategic, and consistently focused on delivering the highest quality work. I would recommend her without hesitation to any organization seeking exceptional legal counsel."
Breanna is also thoughtful, strategic, and consistently focused on delivering the highest quality work. I would recommend her without hesitation to any organization seeking exceptional legal counsel."
★★★★★ Review on Avvo
Read Full Review
Client Review
Trusted Resource
"We thoroughly enjoyed working with Breanna. She was very detail oriented, collaborative, and had deep subject matter expertise in helping our state associations get their nonprofit paperwork in order and set up for success.
Breanna made difficult administrative tasks seem easy, and all of this with a smile. She was a trusted resource for our work, and I'm happy to highly recommend her to others."
Breanna made difficult administrative tasks seem easy, and all of this with a smile. She was a trusted resource for our work, and I'm happy to highly recommend her to others."
★★★★★ Review on Avvo
Read Full Review
Client Review
Highly Recommend
"We were so grateful for Breanna's work for our small non-profit. Kind, clear, and reliable! Highly recommend!"
★★★★★ Review on Avvo
Read Full Review
Client Review
Wonderful
"Professional, timely and goes to a great deal of effort to ensure you understand the whole process."
★★★★★ Review on Avvo
Read Full Review
Client Review
Knowledgeable
"Attorney McCarthy is very knowledgeable and supportive during every steps of the process."
★★★★★ Review on Avvo
Read Full Review
The testimonials on this page reflect the experience of those individual clients. Every matter is different, and a prospective client may not obtain the same or similar results.
Let's restore your exempt status.
Send us your organization's name and we'll confirm the status and outline the fastest path back.