
08/04/2025
Fact check: Can the IRS revoke your nonprofit’s tax-exempt status overnight?
This clear and insightful guide from Nonprofit Quarterly outlines the legal safeguards nonprofits enjoy—from the mandatory audit and appeal steps to the separation between state nonprofit status and federal tax-exemption.
It breaks down:
• Why tax-exempt status can’t be revoked by executive order
• The multi-stage process—including audits, appeals, and even court review
• What happens if your status is revoked, and how to recover
For nonprofit leaders, staying informed on these protections and compliance requirements is not just smart—it’s essential.
A nonprofit legal expert weighs in on what the government can actually do to affect an organization’s tax-exempt status.