Important Compliance Information for ALA Members

Compliance is an important aspect to the health of American Legion Auxiliary Units, Departments, and District/County/Councils. This information is intended to assist and guide ALA entities in understanding their obligations for:

1. Operating as a tax-exempt nonprofit corporation or tax-exempt association permitted to use the name and trademarks of the American Legion Auxiliary
2. Federal requirements of filing annual IRS Form 990 Series and meeting any state and local requirements
3. Taking appropriate steps for addressing the IRS’ revocation of the tax-exempt status of an ALA entity

The contents of this website are intended to convey general information only and not to provide legal advice or opinions. The contents of this website, and the posting and viewing of the information on this website, should not be construed as, and should not be relied upon for, legal or tax advice in any particular circumstance or fact situation. The information presented on this website may not reflect the most current legal developments. No action should be taken in reliance on the information contained on this website and we disclaim all liability in respect to actions taken or not taken based on any or all of the contents of this site to the fullest extent permitted by law. An attorney should be contacted for advice on specific legal issues.

Compliance questions can be emailed to compliance@ALAforVeterans.org 

ALA Entities

ALA entities are separate organizations that operate independently as affiliates of the ALA National Organization. Intermediate bodies of the Departments – Districts/Counties/Councils (D/C/Cs) – are subordinate to the Department. All chartered ALA entities are permitted by the National Organization to use the name and trademarks of the American Legion Auxiliary and must comply with the national legal requirements for use of same. As independently operating nonprofit organizations, ALA entities must duly report to the federal government via the applicable series of IRS Form 990 as well as their respective state governments. Departments should advise their intermediate bodies regarding the filing of IRS annual reports.

ALA entities that have requested inclusion under the group ruling and remain compliant with the IRS requirements, should be recognized as being federally tax exempt and able to receive tax-deductible donations as a subordinate of the ALA National Organization Group Exemption ruling, as identified by Group Exemption Number 0964.

ALA entities that have had their tax-exempt and deductibility status revoked by the Internal Revenue Service (IRS) for failure to file, or in some instances due to IRS error, need to initiate appropriate steps to become compliant.

All ALA entity leaders should be knowledgeable about the following information.

ALA DISTRICTS/COUNTIES/COUNCILS (D/C/Cs)

The American Legion Auxiliary National Bylaws were amended at the 2012 National Convention to grant Departments the authority to create intermediate bodies between the Units and Departments to act as a liaison between such organizations for the purpose of promoting the programs of the American Legion Auxiliary. Departments now have the nationally recognized option to establish D/C/Cs.
Administratively, a D/C/C is part of a Department. A D/C/C may separately incorporate only with the approval of its respective Department. A chartered D/C/C that has requested inclusion can be federally tax-exempt and able to receive tax-deductible donations under the ALA National Organization Group Exemption ruling. If a D/C/C has already obtained its own unique tax-exempt status with the IRS, the responsible party should verify that the status also includes the tax-deductibility for donations.

ALA ENTITY STRUCTURE: NONPROFIT CORPORATION OR ASSOCIATION (UNICORPORATED)

Incorporation is a legal process used to form a corporate legal entity. A corporation is a separate legal entity from its organizers that has its own rights and obligations and provides legal protection for an organization by limiting the liability of the individual members of the organization. A nonprofit corporation is a special type of corporation that has been organized to meet specific tax-exempt purposes. Incorporation involves jurisdiction (state) specific registration information and fees. The American Legion Auxiliary’s Counsel General strongly recommends incorporation.

Note: The act of incorporating as a nonprofit corporation does not automatically grant federal tax-exempt status and the ability to receive tax-deductible donations.

A nonprofit association forms whenever at least two people agree to pursue a common lawful purpose that is not for profit. In general, an association is a group of persons banded together for a specific mission and purpose. Historically, a majority of ALA Units were formed with this entity structure and continue in existence. The definition of a nonprofit association can vary under state law. You may wish to consult the law of the state in which the organization exits. The nonprofit association may be subject to certain legal requirements, even though it hasn't filed for incorporation under its state's incorporation laws. There may also be multiple state and local registration requirements no different from a similar nonprofit corporation, such as charitable solicitation registration, out-of-state qualifications to do business, and local business registration.

FEDERAL TAX IDENTIFICATION NUMBER (TIN) / EMPLOYER IDENTIFICATION NUMBER (EIN)

The federal TIN or the federal EIN (both terms are used by the IRS interchangeably) is a unique 9-digit identification number assigned to your organization by completing IRS Form SS-4. Each TIN/EIN assigned is on file with the IRS and should be used on all tax returns, correspondence, and a copy of the letter confirming the TIN/EIN assignment should be retained permanently in the records of the organization.

The American Legion Auxiliary Constitution, Bylaws and Standing Rules as adopted, revised and updated, provides guidance as to the expectation that Departments and Units will operate as independent separate entities as affiliates of the ALA National Organization. If an ALA Unit discovers that they are currently operating with their American Legion Post as one entity, the ALA Unit needs to establish separate operations to conduct business. The organization can obtain a TIN/EIN by completing and submitting IRS Form SS-4 to the IRS. This form is where you initiate the entity type and structure of the classification as a 501(c)(19) – Veterans’ Organization. An additional step is required for formal recognition in seeking exemption from federal taxation and the ability to receive tax-deductible donations by choosing to seek a unique determination from the IRS by submitting IRS Form 1024 or requesting inclusion under the ALA National Group Exemption ruling.

Note: Please see the D/C/C flowchart and FAQs located in the Department Operations Guide to determine if a TIN/EIN is needed.

NONPROFIT ORGANIZATION CLASSIFICATION 501(c)(19)

The American Legion Auxiliary National Organization is recognized as a 501(c)(19) – Veterans’ Organization classification for federal tax exempt purposes and is able to receive tax-deductible donations per the Internal Revenue Code (IRC) Title 26 §170(c)(3). In October of 1946 the individual ruling letter for the American Legion Auxiliary National Organization was changed to include the recognition of the subordinate ALA entities as being classified as 501(c)(19) organizations that meet the following criteria:

1. Organized in the United States or any of its possessions
2. 75% of members are spouses of or within two degrees of kinship related to past or present members that served in the U.S. Armed Forces
3. No personal inurement benefit is received by an individual
4. Affiliated and organized in accordance with the bylaws and regulations formulated by the parent organization

(Please see IRS Publication 557 and Publication 3386 for more detailed information)

The IRS affirmed the ALA National Organization’s federal tax-exempt status and its ability to receive tax-deductible donations of the group ruling via its IRS Letter of Determination to the American Legion Auxiliary National Secretary dated March 26, 1973.

TAX EXEMPT AND DEDUCTIBILITY STATUS ARE NOT AUTOMATIC

An organization can be established as a nonprofit and have the required TIN/EIN but still NOT be tax-exempt or able to receive tax-deductible donations. It is at the discretion of the IRS to grant exemption from paying federal income taxes and the ability to receive tax-deductible donations – this is an entirely separate federal filing and determination process. For ALA entities, the ALA National Organization Group Exemption ruling provides federal tax-exemption and deductibility of donations unless the IRS has specifically revoked an ALA entity’s status. See information about tax exempt status revocation that follows in this document.

Newly chartered ALA entities that have obtained a TIN/EIN to conduct business and operate, can seek federal tax-exempt recognition as a 501(c)(19) and the ability to receive tax-deductible donations per IRC § 170(c) by requesting inclusion under the ALA National Group Ruling. ALA entities seeking group ruling inclusion will need to complete an Inclusion Letter and provide verification of their TIN/EIN in the form of a copy of the IRS letter confirming the assignment of their TIN/EIN. A template of the Inclusion Request letter can be obtained by contacting ALA National Headquarters at compliance@ALAforVeterans.org.

Note: If your ALA entity indicated a classification as anything other than a 501(c)(19) on your IRS Form SS-4, the ALA National Organization will be unable to request your inclusion under the Group Exemption Ruling. Please contact the ALA Compliance Team at Compliance@ALAforVeterans.org for further guidance.

ALA entities have the option to seek their own unique tax-exempt and deductibility status by electronically completing IRS Form 1024 and paying applicable fees.

Note: Inclusion under the ALA National Group Ruling is strongly recommended.

Tax Deductible Donations and Gifts

Per the IRS Determination Letter for the ALA National Group Ruling, donations and contributions to organizations included in the group ruling are tax deductible per Internal Revenue Code Section 170(c)(3).

Note: ALA entities that have their own unique determination letter issued from the IRS are able to verify the deductibility status of donations and contributions via the IRS Business Master file accessible through the IRS website (Column H – Deductibility; coded as 1 = able to receive tax deductible donations; coded as 2 = not able to receive tax-deductible donations) or by calling the IRS Exempt Organization (EO) Division at 1-877-829-5500. If the organization is coded as 2= unable to receive tax deductible donations, verify with the IRS the process for reconsideration. Entities will want to take special care describing the mission and purpose of the organization when completing IRS Form 1024.

ALA FEDERAL GROUP EXEMPTION NUMBER (GEN) GEN 0964

On October 31, 1946 the IRS granted a group ruling to the American Legion Auxiliary National Organization that allows the inclusion of ALA entities, by request, to be recognized as 501(c)(19) organizations for exemption from federal taxes with the ability to receive tax-deductible donations, as subordinates of a group exemption ruling. The IRS does not require separate applications of recognition from each individual subordinate for organizations like the ALA that have many affiliated organizations. However, the ALA National Organization does not file a group return. Subordinates of the group ruling are responsible for filing the appropriate 990 series of annual return for their ALA entity. The American Legion Auxiliary National Organization’s group ruling is identified by the IRS Group Exemption Number (GEN) 0964. When proof of federal tax-exemption or the ability to receive tax-deductible donations is requested, a photocopy of the 1973 IRS Letter of Determination for ALA National Group Exemption ruling is generally sufficient.

Entities requesting a copy of the IRS Letter of Determination for the ALA National Group Exemption Ruling can contact the Compliance Team at compliance@ALAforVeterans.org. Verification that the entity is currently included under the Group Exemption ruling and compliant will be confirmed prior to sending a copy of the determination letter.

Note: The purpose of the IRS federal group exemption ruling is to exempt the American Legion Auxiliary National Organization and its ALA entities (subordinates) under the ALA’s National Group Exemption ruling (GEN 0964) from federal income tax and with the ability to receive tax-deductible contributions. The Auxiliary at all levels is otherwise subject to other federal taxes such as payroll taxes and tax on unrelated business income. ALA entities may also be subject to certain state and local taxes, including hotel, hospitality, service, and sales taxes. Nonprofit tax requirements differ by state and locality; be sure to consult with a tax adviser knowledgeable about your state’s nonprofit tax requirements to determine if nonprofit organizations in your state are afforded any state tax exemptions.

IRS FORM 990, 990-EZ, 990-N

When annual gross receipts are $50,000 or less, an ALA entity may file IRS Form 990-N (e-Postcard). For those with gross receipts of $50,000 or less, please see instructions for filing the Form 990N (e-Postcard) that follow in this document.

When annual gross receipts are greater than $50,000, an ALA entity must file IRS Form 990 or 990-EZ. When gross receipts are greater than or equal to $200,000 or total assets are greater than or equal to $500,000 the IRS Form 990 is required. The IRS Form 990-EZ may be used when the gross receipts are less than $200,000 and total assets are less than $500,000.

The federal filing due date for the IRS Form 990, 990-EZ, or 990-N (e-Postcard) is the 15th day of the 5th month after the close of the organization’s tax year. For example, if your fiscal year ends June 30th, your filing due date for whichever version of the IRS Form 990 you are required to complete is November 15th. If your fiscal year ends September 30th, your federal filing due date is February 15th. If your fiscal year ends December 31st, your federal filing due date is May 15th.

It is strongly recommended that ALA entities have written policies and procedures that document the organization’s review process for their annual returns. Although a 990 review policy is not legally required, having one written reflects good management practices and good governance of the organization.

Note: For D/C/Cs that do not have their own TIN/EIN, please see the documents “ALA Determining 990 Charter Needs for ALA Districts/Counties/Councils” and “ALA District/Counties/Councils Organization Structure & 990 Tax Return Frequently Asked Questions”.

IRS Form 990T – Unrelated Business Income Tax

Not all receipts are exempt from Federal income tax. Gross income in excess of $1,000 from business unrelated to the organization's exempt purpose must be reported on Form 990T. Form 990T must be completed in addition to Form 990. Please consult with a tax professional in determining if any part of the annual receipts are considered to be unrelated business income.

IRS Form 8822-B Change of Address or Responsible Party

IRS Form 8822-B is used to notify the IRS of a change of address or a change in the responsible party for your organization. A “Responsible Party” is typically the person that signs your IRS Form 990/990EZ/990-N. It is the responsibility of the officers who manage the organization to notify the IRS if there has been a change in the responsible party and/or the organization has changed its address to receive correspondence.

The IRS Form 8822-B and its instructions can be found at the following IRS link: https://www.irs.gov/pub/irs-pdf/f8822b.pdf.  Going forward, Form 8822-B must be filed within 60 days of the date of change.

Public Scrutiny of IRS Tax Documents

Organizations that file IRS Form 990 and 990-EZ must make their annual returns available for public inspection or copying, excluding certain documents that are not available to the public for inspection, such as Schedule B – List of Contributors. The IRS provides access to filings of all versions of the IRS Form 990 available online to charity rating and watchdog organizations, and to the news media following the same public inspection and protection regulations. To view the Exempt Organization Public Disclosure and Availability Requirements, please go to

https://www.irs.gov/Charities-&-Non-Profits/Exempt-Organization-Public-Disclosure-and-Availability-Requirements

Form 990 is not just a disclosure of a nonprofit’s financial statements, but also serves as a tool for compliance and accountability reporting that meets the diverse needs of both the regulatory community and the public. The Form 990 asks specific questions about your governance policies and program achievements. Lack of adequate governing and oversight policies increases the chance for an audit or scrutiny of your tax-exempt organization.

In general the IRS’s rules regarding public inspection of tax documents, when a member of the public makes a request to inspect tax documents or obtain copies, your organization must comply in a reasonable time and manner. Your ALA entity can make compliance with these rules easier by posting PDF files of required documents on your organization’s website (if applicable). Please take care of the specific regulations that exclude public disclosure of the names and addresses of contributors, as listed on a Schedule B or set forth on the annual return. It is the ALA entities’ responsibility to ensure the protection of the contributor’s personal information and exclude documents that are not defined as a disclosable document.

Rules for Public Disclosure of Tax Documents:

1. By law, the public has a right to view and receive copies of any series of the 990 or 990-EZ (including 990-T) forms filed by a tax-exempt organization for the last three (3) years plus the IRS exemption application and award letter. However, certain tax-exempt organizations are not required to disclose publicly the Schedule B – List of Contributors (names and addresses) or set forth on its annual return (990 or 990-EZ series of annual return).
2. Tax-exempt organizations are required to make these documents available for inspection, without charge, at its office during regular business hours.
3. If your organization only fills out the form 990-N (e-Postcard) online, you can direct all requests for inspection to the IRS website, www.irs.gov, under the EO Tax Exempt Organization Search (f/k/a Select Check) portal where it can be downloaded for free.
4. If a tax-exempt organization does not have a place of business or its office hours are limited, it must make the documents available for inspection at a reasonable time and location of its choice within two (2) weeks of the request being made.
5. If a tax-exempt organization does not have an established place of business or its office hours are limited, requests to inspect documents in person may be accommodated instead by mailing the copies of the documents within two (2) weeks of receiving the request. This may substitute for an in-person inspection. In such a case however, fees for copies and postage may only be charged if the requester consents. No fee for services or access may be charged.
6. Should a requester contact your ALA entity in writing (by mail, electronic means, or fax) and request that you send written copies of documents, excluding those not defined as disclosable documents, such as Schedule B – List of Contributiors, to them:
   • You must mail the copies requested within thirty (30) days of receiving the request.
   • If you require prepayment for copy and postage costs in advance, the documents must be sent within thirty (30) days of receiving payment. No fees for services or access may be charged.
   • If you receive a request without payment and require payment (for copy and postage costs), you must notify receiver of prepayment policy within seven (7) days of receiving the request.
   • If you receive consent from requester, you may provide electronic rather than paper copies of the documents.
7. If your ALA entity has made your documents widely available on a website, then you are not required to provide copies requested through the mail, electronic means, or fax, but must notify the requester of the availability of the documents online. However, disclosure of the contributors listed in Schedule B or set forth in an annual return (990 or 990-EZ) are not defined as disclosable documents and should not be included in the copy published on the website. An organization must still provide a copy if a request to do so is made in-person, with the exclusion requirements.
   • The IRS deems documents to be widely available if:
     • the document can be easily viewed, downloaded, and printed without special software or charge; and
     • the documents are exact reproductions of the images of the original documents and are not subject to loss, destruction, or alteration.
8. If your ALA entity has a permanent place of business, and a requester appears in person during office hours, the following guidelines apply:
   • You may have an employee/volunteer in the room with the requester while he/she examines the documents.
   • The requester may take notes freely.
   • Should the requester bring his/her own portable photocopy equipment (such as a camera, scanner, etc.), your organization must allow the requester to photocopy the document, excluding the Schedule B, at no cost.
   • Should the requester ask for copies, you may charge a reasonable fee for actual copy costs only. No fee for services of access may be charged.
   • Copies must be provided to the requester the same day a request is made, except in unusual circumstances.

Annual Electronic Filing Requirement for Small Exempt Organizations

Form 990-N (e-Postcard)

About filing - Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990EZ, must be submitted electronically.

• The Form 990-N electronic-filing system is accessible via the IRS.gov website. All filers must register at IRS.gov (if not already registered) prior to filing their Form 990-N. This is a one-time registration; you won’t be asked to register again when filing next year. Use the Form 990-N (e-Postcard) Electronic Filing System User Guide while registering and filing.
• Form 990-N must be completed and filed electronically. There is no paper form.
• Form 990-N filers may choose to file a complete Form 990 or Form 990-EZ instead.
• For filing system and website issues, see How to File: Frequently Asked Questions. If site issues are unresolved, call IRS Exempt Organization Division at 1-877-829-5500.
• Organizations should continue efforts to file within one year of the due date of the applicable tax year, even if late. Due dates for filing are determined by the fiscal year of record with the IRS.

Note: To find the 990-N (e-Postcard) User Guide or the How to File: Frequently Asked Questions, visit www.IRS.gov and type in “990 User Guide” and/or “990-N FAQ How to File” in the search box on the Home page.

Your IRS Form 990-N is due every year by the 15th day of the 5th month after the close of your tax year. You cannot file the e-Postcard until after your tax year ends.

If your 990-N is late, the IRS will send a reminder notice to the last address that is on record. While there is no penalty assessment for filing Form 990-N late, organizations that fail to file required Forms 990, 990-EZ or 990-N for three consecutive years will automatically lose their tax-exempt status. Revocation of the organization’s tax-exempt status will happen on the filing due date of the third consecutively-missed year.

Information you will need when filing Form 990-N

Form 990-N is easy to complete. You'll need only eight items of basic information about your organization:

1. TIN/EIN
2. Tax Year
3. Legal name and mailing address
4. Any other names the organization uses
5. Name and address of a principal officer
6. Web site address if the organization has one
7. Confirmation that the organization’s annual gross receipts are $50,000 or less
8. If applicable, a statement that the organization has terminated or is terminating (going out of business)

Ready to file?

After you have read the information above and the User Guide, use the Form 990-N Electronic Filing System (e-Postcard) page to start the process.

Note: Visit www.IRS.gov and type “990-N” into the search box on the Home page.

Additional information

• Form 990 Overview course at StayExempt.IRS.gov
• Frequently Asked Questions - Automatic revocation for not filing annual return or notice
• Final regulations (August 10, 2009)
• Educational tools - Help spread the word – Help small tax-exempt organizations stay exempt!
• EO Update - Subscribe to the IRS Exempt Organizations email newsletter that highlights new information
• IRS Business Master File (EO) – Search nonprofit organizations. You can download the excel file extracts specific to your state of registration.

STATE & LOCAL REQUIREMENTS – TAX AND CHARITY REGISTRATION

Federal tax exemption does not automatically grant exemption from state and local taxation. Each state and local municipality has its own tax laws and rulings regarding tax exemptions, including sales tax. State tax exemptions may only be granted by the state in which your ALA entity is located. Sales tax exemption is only recognized in the state where it is granted.

Most states require a specific nonprofit status tax return form be filed annually. State tax returns for a nonprofit organization may be required to maintain state and local tax-exempt status.

Some states regulate charitable organizations’ solicitations to the public and fundraising activities. States may require an additional annual filing to verify these activities. Be sure to consult with your state’s agencies and/or a knowledgeable legal/tax professional in your state to ensure you are meeting all the requirements for filing, and for maintaining any state and local charitable regulations that have been mandated to ensure compliance.

TAX-EXEMPT STATUS REVOCATION

The Pension Protection Act of 2006 (Title XII; Subtitle B; Part I Sec. 1223) imposed certain reporting requirements on exempt organizations that were not previously required to file. Additionally, organizations that fail to file the required IRS Form 990 Series for three consecutive years automatically have their federal tax exempt status and their ability to receive tax-deductible donations revoked. These requirements were implemented in the 2007 tax year.

Consequences of losing your federal tax-exemption may include but are not limited to the following:

1. Your ALA entity is no longer exempt from federal income tax, does not have the ability to receive tax-deductible donations, and will be subject to corporate income tax on annual revenue. 
   • Note: Your ALA entity should proactively communicate with your donors explaining that the organization’s tax-exempt status has been revoked. You should communicate the reason for the revocation, consequences of the revocation, and that all steps are being taken to have the organization’s tax-exempt status reinstated.
2. State and local tax-exemptions, dependent on the organizations’ federal tax-exempt status, may also be revoked. Please consult with the state and local regulatory agencies and/or a tax professional.
3. ALA entities that have had their tax exempt status revoked are unlikely to be considered for grants.

Note: ALA entities that have lost federal (and/or state) tax-exempt status may still remain chartered entities with the American Legion Auxiliary. The ALA National Organization does not require chartered entities to be tax-exempt.

RECOMMENDED REINSTATEMENT PROCESS FOR CHARTERED ALA ENTITIES

To obtain any information on the status of the respective organization, the ALA entity should first consult the IRS resources of IRS Exempt Organization (EO) Tax Exempt Organization Search (f/k/a Select Check) website portal (https://apps.irs.gov/app/eos/ ) and the IRS Business Master File (https://www.irs.gov/charities-non-profits/exempt-organizations-business-master-file-extract-eo-bmf).

1. If an ALA entity has had its exempt status revoked by the IRS, it is the ALA entity’s responsibility to resolve the matter. ALA entities must deal directly with the IRS. Since each entity is separately organized and has its own TIN/EIN, the ALA National Organization is prohibited from acting on behalf of the ALA entity but can provide guidance as needed.
2. If tax-exempt status is desired, it is strongly recommended that you retain a legal and/or tax professional knowledgeable in nonprofit tax matters to assist in the reinstatement process.
   • ALA entities might be able to retain legal and/or tax professionals pro bono, or they may consider working with other ALA entities, or Posts, to retain legal and/or tax professionals at a discounted group rate.
   • Filing for reinstatement of recognition as a 501(c)(19) federally tax-exempt organization (including the ability to receive tax-deductible donations) requires the use of IRS Form 1024, which must be submitted electronically through IRS Pay.gov. Completion of this form will include payment by ACH or credit/debit card of the reinstatement fee, which is currently set at $600 (as of 1/24/2022, subject to change by the IRS).
     1. When going to IRS Pay.gov, search ‘1024’ in the search bar to fill out the correct form.
     2. Select ‘Continue’ on the option labeled: Application for Recognition for Exemption Under Section 501(a) or Section 521
     3. You'll have to create a single PDF file (not exceeding 15MB) that you will upload at the end of the application. This PDF must contain a copy of your:
        1. Organizing document and any amendments (e.g., articles of incorporation, constitution, trust document, etc.)
        2. Bylaws, if adopted
        3. Signed and completed Form 2848 or Form 8821, if applicable
        4. Supplemental responses, if applicable, and
        5. Expedited handling request, if applicable If your PDF file exceeds the 15MB limit, remove any items over the limit and contact IRS Customer Account Services at 877-829-5500 for assistance on how to submit the removed items.
   • ALA entities who have met the IRS requirements of reinstatement and receive their own unique tax-exempt status and deductibility of contributions determination from the IRS can be reincluded to the ALA National Group Ruling, will need to contact Compliance@ALAforVeterans.org for further instructions.
   • Your organization is reinstated as of the date indicated on the IRS letter (retroactively or postmark). Delays may occur in the publication of updated information by the IRS to the EO Tax Exempt Organization Search (f/k/a Select Check) website portal.
3. ALA entities that have been revoked have the option of remaining a taxable entity.
   • If the ALA entity chooses to remain a taxable entity, they are responsible for filing the appropriate tax forms with the IRS relative to their organizational structure (e.g. 1120 Corporate Tax Return). While you can remain a chartered ALA entity, your 501(c)(19) classification is in jeopardy with the IRS should you remain a taxable entity.
4. If a legal and/or tax professional’s review of the details regarding your tax-exempt status revocation determines that the revocation was due to IRS error, the ALA entity may send documentation that supports the error to ALA National Headquarters, Attention: Membership Division. The ALA National Headquarters staff will forward the documentation disputing the IRS error to the National Judge Advocate for review and appeal assistance when appropriate.

HOW TO CHECK YOUR IRS STATUS

ALA entities can contact the IRS Exempt Organization Division at (877) 829-5500. This IRS group is specially trained in tax-exempt issues and may be able to help answer questions and give direction for ALA entities that have had their tax-exempt status revoked by the IRS.

• Use the IRS EO Tax Exempt Organization Search (f/k/a Tax Exempt Organization Search (f/k/a Select Check) portal of the IRS website
  • https://apps.irs.gov/app/eos/
• Use the assigned TIN/EIN to review the information reported to the public:

1. Is the organization able to receive tax-deductible contributions?
2. Has your Federal Tax-Exempt Status & Tax-Deductibility of Contributions been revoked?
3. Have you filed and met the requirements of the 990-N (e-Postcard)?

Note: Under the category “Are able to receive tax-deductible charitable contributions” - the IRS no longer includes the individual subordinates that are included in a group ruling, only the parent or central organization will appear. As a subordinate, this is verified per the IRS Determination Letter for the Group Ruling and is available upon confirmation through headquarters.

If your organization is not reflected in all three categories listed above then a) the TIN/EIN may no longer be listed in the IRS database, or b) the TIN/EIN associated has not properly elected to be recognized as a nonprofit in section of 501 (a) of the IRS code and therefore may not be recognized by the IRS as meeting the requirements to file a 990-N.

ALA entities that have had no activity since the implementation of the Pension Protection Act of 2006 may have been removed from the IRS database. Call the IRS Exempt Organization Division at 1-877-829-5500 for more information.

To stay current on federal tax-exemption matters, please go to the following link at IRS.gov to subscribe to “Exempt Organization Updates”: http://www.irs.gov/uac/e-News-Subscriptions-2

FOR MORE INFORMATION

Visit www.ALAforVeterans.org and www.IRS.gov for resources, updates and more information or contact the American Legion Auxiliary at: compliance@ALAforVeterans.org