IRS Publication 892 – If your nonprofit, charity, or tax-exempt organization receives a proposed adverse determination from the IRS—whether denying initial qualification for 501(c)(3) status, revoking existing exempt status after an audit, or reclassifying your foundation status—you have the right to appeal.
IRS Publication 892 (Rev. February 2017), officially titled How to Appeal an IRS Determination on Tax-Exempt Status, remains the authoritative IRS guide for this process. The IRS continues to link to and reference this exact publication on its updated 2025 pages for exempt organizations, confirming it as current guidance.
Download the official PDF here: https://www.irs.gov/pub/irs-pdf/p892.pdf.
This comprehensive article breaks down everything in Publication 892 with step-by-step instructions, key timelines, required protest elements, and options for judicial review—optimized for organizations facing IRS decisions on tax-exempt status.
Why IRS Publication 892 Matters for Nonprofits?
The IRS has sole authority to determine which organizations qualify for tax-exempt status under the Internal Revenue Code. An adverse determination can mean loss of donor deductibility, tax-exempt financing, or state-level benefits.
Publication 892 explains your administrative appeal rights to the Independent Office of Appeals (an impartial IRS function separate from the examining office) before litigation becomes necessary. Appealing through Appeals often resolves disputes faster and at lower cost than court.
You can appeal these specific proposed adverse determinations:
- Denial of initial qualification for tax-exempt status (or certain foundation classification changes) on a new application.
- Revocation of tax-exempt status following an audit.
- Reclassification of a Section 501(c)(3) organization’s foundation status (e.g., from publicly supported to private foundation) after an audit.
Note: Appeals rights have limits in cases involving fraud, jeopardy assessments, or statute-of-limitations issues where delay would harm government interests.
Step-by-Step Guide: How to File a Protest (Per Publication 892)?
The IRS typically issues a “30-day letter” (formal proposed adverse determination letter). You must act quickly.
1. Timeline
File your protest within 30 days from the date of the IRS letter. Missing this deadline generally means you forfeit administrative appeal rights and may be barred from seeking a declaratory judgment in court (for failure to exhaust administrative remedies).
2. What Your Protest Statement Must Include
Your written protest must contain all of the following (directly from Pub 892 and current IRS charity audit pages):
- Organization’s full name, address, Employer Identification Number (EIN), and daytime phone number.
- A clear statement that you want to protest the proposed adverse determination.
- A copy of the 30-day letter (or the date and IRS office symbols if you don’t have the copy).
- Detailed explanation of why you disagree, including supporting facts and documents.
- Citation to the law, regulations, or other authority you rely on.
- Statement whether you want an Appeals conference.
- Perjury declaration:
“Under penalties of perjury, I declare that I have examined this protest statement, including accompanying documents, and to the best of my knowledge and belief, the statement contains all relevant facts, and such facts are true, correct and complete.” - Signature by a principal officer, trustee, or authorized representative.
Submit the protest and all attachments to the address shown on the IRS letter.
3. Optional First Step (Audit Cases Only)
For audit-related proposals, you may first request a conference with the manager of the IRS examiner who issued the letter. If you still disagree after that meeting, file the formal protest within the 30-day window. Signing a consent form at this stage does not waive your right to later file for declaratory judgment.
What Happens After You File the Protest?
- Exempt Organizations Rulings and Agreements reviews the protest first (for initial applications). If your additional information resolves the issues, they issue a favorable determination.
- If the adverse position stands, the case forwards to the Independent Office of Appeals.
- Appeals reviews the case independently and schedules an informal conference (in-person, phone, or correspondence).
- Appeals conferences are non-adversarial—no sworn testimony or transcript. You (or your representative) discuss facts, law, and possible settlements based on “hazards of litigation.”
If you reach agreement, you sign a settlement agreement. Most cases resolve here.
If No Settlement: Judicial Appeal Rights (Declaratory Judgment)
If Appeals sustains the adverse determination, you receive a final adverse determination letter with a 90-day deadline.
You may then petition one of these three courts for a declaratory judgment on your exempt status or foundation classification:
- U.S. Tax Court (most common for exempt orgs)
- U.S. Court of Federal Claims
- U.S. District Court for the District of Columbia
Deadline: File the petition/complaint within 90 days of the mailing date of the final IRS letter.
Important: Courts require proof that you exhausted all IRS administrative remedies (i.e., you timely filed the protest). Publication 892 explicitly warns that skipping the protest step may result in the court dismissing your case.
U.S. Tax Court filing address (for “Petition for Declaratory Judgment (Exempt Organization)”):
United States Tax Court
400 Second Street, N.W.
Washington, DC 20217
Contact the Clerk’s office at (202) 521-0700 for forms and rules.
Representation and Required Forms
- A principal officer or trustee can represent the organization.
- For professional representation, file Form 2848 (Power of Attorney and Declaration of Representative) authorizing an attorney, CPA, or enrolled agent.
- If your representative signs the protest, they must include a substitute perjury declaration.
See IRS Publication 947 for more on practice before the IRS.
Special Considerations and Pro Tips (2026)
- Statute of Limitations: Appeals generally requires at least 365 days remaining on the assessment statute when the case arrives. You may need to sign an extension.
- Technical Advice: You can request referral to Associate Chief Counsel (TE/GE) for technical advice on novel or inconsistent issues. Such advice is generally binding on Appeals.
- No New Issues: Appeals typically considers only issues raised in the protest.
- Fast Track or Mediation Options: While Publication 892 focuses on standard appeals, current IRS programs (such as Post-Appeals Mediation pilot launched in 2025) may offer additional resolution paths in some cases—check with your Appeals officer.
- Professional Help Recommended: Tax-exempt status appeals involve complex facts-and-circumstances tests (public support, operational tests, etc.). Consult a tax attorney or CPA experienced in exempt organizations early.
Frequently Asked Questions About IRS Publication 892
Is Publication 892 still current in 2026?
Yes. The IRS last revised it in February 2017, and all official IRS charity/nonprofit pages updated through July–September 2025 continue to direct users to this exact document.
Can I appeal a final revocation immediately?
No—appeals begin with the proposed (30-day) letter. Once final, your option is primarily court (declaratory judgment).
What if I miss the 30-day deadline?
You lose the right to Appeals consideration and risk being unable to go to court for declaratory judgment.
Does filing a protest stop any immediate tax consequences?
It generally keeps the issue in administrative process, but consult a professional regarding any ongoing filing or payment obligations.
Conclusion: Protect Your Tax-Exempt Status
IRS Publication 892 gives nonprofits a clear, fair pathway to challenge adverse determinations through an independent Appeals process before facing costly litigation. By following the protest requirements, timelines, and procedures outlined in the publication, most organizations can resolve disputes efficiently.
Action Steps Today:
- Download IRS Publication 892: https://www.irs.gov/pub/irs-pdf/p892.pdf
- Review your 30-day letter immediately and calendar the deadline.
- Gather supporting documentation and consider engaging exempt-org counsel.
- File a complete, timely protest.
For general IRS Appeals information, visit irs.gov/appeals. For charity-specific audit appeals, see the IRS page on Charity and Nonprofit Audits: Appeal Rights and Procedures.
Disclaimer: This article summarizes official IRS guidance in Publication 892 and related 2025-updated IRS webpages for informational purposes only. It is not legal or tax advice. Every situation is unique—consult a qualified tax professional or attorney for advice specific to your organization.
Last updated February 2026 based on current IRS resources.