Tax Exempt Status Pulled by IRS. Some posts were advised that their tax exempt status was pulled for failing to file IRS Form 990 for the the last three tax years. This was an automatic action. Affected posts received several notices to comply and a warning in June. It happened in July.
- This action by the IRS was mandated by a change in the tax law that requires reporting by all tax exempt organizations for tax years 2007 and beyond.
There are 71 American Legion Posts in our state that are pulling out all stops to submit an IRS Form 1024 (Application for Recognition of Exemption Under Section 501(a)). Three of the posts are in our district.
This is serious business. Remember “For the lack of a nail, a shoe was lost…..”? If you don’t have tax exempt status, you lose your federal EIN. If you are not recognized by the federal government, your charter is in jeopardy.
Department File Copies of Post Historical Files. The issue with post tax exempt status brought to light a need to ensure Department records are up-to-date and correct. The Department of North Carolina, American Legion, is requiring all post submit the following documents:
- The Post Constitution
- The Post Bylaws
- A report listing all federal EIN numbers assigned to your post.
- Post incorporation documents. Some post still have temporary post documents. Please check your Post files and send a copy showing it has been filed with the Secretary of State Office.
- Copy of Post’s application for Charter to which your Permanent Charter is based.
This is nothing special. All of these documents are required by the Department of North Carolina Bylaws. With out these documents (on file at your post and at the Department), your post is in violation of the Constitution and Bylaws of the Department of North Carolina.
For questions on this week’s news, or any other item of concern to you or your post, Donald R Bush District 12 Commander.