Instructions for Reinstatement of Tax-Exempt Status - Local PTA

Sep 16, 2026

Upload by Marry

Instructions guide local PTAs on reinstating IRS tax-exempt status after revocation caused by failing to file required information returns for three consecutive years (Form 990, 990-EZ, or 990-N). The packet sent to the IRS must include a cover letter, a reasonable cause statement when seeking retroactive reinstatement, delinquent Forms 990/990-EZ if applicable, IRS Form 1023 and required attachments, and a check payable to the U.S. Treasury. It also explains how to complete Form 1023, including using “Automatically Revoked” on page one and ensuring accuracy of completed sections.

LanguageEnglish

CategoryLetters

FormatPDF

Pages16

Reading Time6 min

AccessFree to download

Instructions for Reinstatement of Tax-Exempt Status

Reinstatement packet requirements

IRS Form 1023 and attachments

Cover letter for the IRS

Reasonable cause statement (retroactive reinstatement)

Instructions for Reinstatement of Tax-Exempt Status Dear Local PTA: The IRS has issued letters revoking the tax-exempt status of numerous organizations, including many local PTAs, for failure to file information returns for 3 consecutive years. In particular, the revocations resulted from a failure to file required Form 990 (Return of Organization Exempt from Income Tax), Form 990-EZ (Short Form Return of Organization Exempt From Income Tax), or Form 990-N (e-Postcard), for three consecutive tax years. If your local PTA received a letter from the IRS stating that your tax-exempt status has been revoked, please follow the instructions in the attachment to this letter to reinstate your organization’s tax-exempt status. If your application is accepted and you provide evidence of reasonable cause for the failure to file your returns, the IRS will issue a letter reinstating the organization’s tax exemption retroactive to the date of the revocation. The packet you send to the IRS must include: 1. Cover Letter to the IRS 2. Reasonable Cause Statement (if seeking retroactive reinstatement) 3. Forms 990 or Forms 990-EZ for all taxable years not previously filed (if applicable – see instructions!) 4. IRS Form 1023 (Application for Recognition of Exemption Under Section 501(c)(3)) 5. Attachments to IRS Form 1023 6. Check made payable to the United States Treasury. Please follow the attached instructions carefully to complete IRS Form 1023 and the attachments. Please carefully review the portions of the form already completed, and make changes to any responses that are incorrect. Please contact me by email at [lwhite@pta.org](lwhite@pta.org) if you have questions. Sincerely, Lindsey White Senior Accountant Enclosure Instructions for Reinstatement of Local PTA Tax Exemption Please follow these instructions carefully. These instructions will help you complete the IRS Form 1023 and required attachments. Do not submit these instructions to the IRS. Please review any already completed responses on Form 1023 for accuracy and make any necessary changes. Keep in mind that terms in bold used in Form 1023 have specific meanings, which are provided in the Instructions to Form 1023, which can be obtained by searching “Form 1023 Instructions” [at](at www.irs.gov)[ ](at www.irs.gov)[www.irs.gov](at www.irs.gov). You can type right on the form, or fill in the blanks with a pen. If you start with a fresh Form 1023 which you print from the IRS website, be sure to put “Automatically Revoked” ontop of the first page, as we have on the model. 1. IRS Cover Letter – Complete the blanks by filling in the date, name of the local PTA, and the title of the local PTA officer submitting the application for exemption to the IRS. The officer should sign the letter. 2. Reasonable Cause Statement – In order for the local PTA’s tax exemption to be reinstated effective as of the date of revocation, you must provide the IRS a “reasonable cause”statement explaining the local PTA’s failure to file information returns for 3 consecutive years. If the IRS determines that reasonable cause does not exist, the local PTA’s exemption will only be effective as of the prospective date of reinstatement, instead of being effective retroactive to the date of revocation. Please be aware that acceptance of a reasonable cause statement is VERY rare. According to the IRS, the local PTA’s reasonable cause statement must include each of the following: a. A written statement setting forth all of the facts that support its claim for reasonable cause for failing to file a required return or notice in each of the 3 consecutive years and over the entire consecutive 3-year period, including a detailed description of all the facts and circumstances that led to each failure and the continuous failure, the discovery of the failures, and the steps taken to avoid or mitigate the failures; b. A written statement describing the safeguards the local PTA has pu

FAQs

What triggers an IRS revocation of a local PTA’s tax-exempt status?

Revocations occur when the organization fails to file required information returns for three consecutive years, typically Form 990, Form 990-EZ, or Form 990-N (e-Postcard).

What must be included in the packet submitted to the IRS to reinstate exemption?

The packet must include an IRS cover letter, a reasonable cause statement when retroactive reinstatement is requested, the required Forms 990/990-EZ for taxable years not previously filed (if applicable), IRS Form 1023 and its attachments, and a check payable to the United States Treasury.

How does the IRS treat retroactive reinstatement when reasonable cause is not accepted?

If reasonable cause is not determined to exist, the PTA’s exemption becomes effective as of the prospective reinstatement date rather than retroactive to the revocation date. The IRS notes that acceptance of a reasonable cause statement is very rare.

Sep 16, 2026

Upload by Marry