Automatic Revocation of Tax-Exempt Status
The Internal Revenue Service (IRS) has recently changed its filing requirements for some tax-exempt organizations. Failure to comply with the requirements may result in the revocation of an organization's tax-exempt status by the IRS. Some Food Distribution programs, including CIs, CSFP, and TEFAP, require tax -exempt status in order for certain organizations to receive USDA foods under each respective program. It has come to our attention that a number of organizations receiving USDA foods have had their tax-exempt status revoked. The purpose of this memorandum is to outline the procedures for each Food Distribution program in addressing organizations that have lost tax-exempt status for failing to meet IRS filing requirements.