Legionnaires,

Smaller Bergen County American Legion posts and American Auxiliary units whose annual gross receipts are normally $50,000 or less and choose not to file IRS Forms 990 or 990-EZ instead, stand to lose their tax-exempt status if they have not filed IRS Form 990N. with the Internal Revenue Service by the 15th day of the fifth month after the end of their fiscal years (i.e. if fiscal year ended 6-30-2020, IRS form must be filed by November 15, 2020.) or have not file any other 990s for three consecutive years regardless of their annual revenues and expenses.

The filing requirement, previously unnecessary for entities with $25,000 or less in annual revenues was imposed as part of the Pension Protection Act of 2006.

Those posts and units that have not filed a 990 for a number of years may find that their Employer Identification Numbers (EIN) have been removed from the IRS system. In that case according to the Past American Legion National Judge Advocate Philip B. Onderdonk, post are strongly urged to file a form SS-4 and apply for reinstatement or a new number

Posts with valid EINs but did not yet file Form 990N are urged to do so immediately, or they are going to lose their tax exempt status, the Past National Judge Advocate said, “The real problem is for posts that accept donations. Tax-exempt status is necessary for tax deductible contributions.”

Posts that lose their tax-exempt status can appeal to the Department of Treasury with letters of justification for not obeying the law. The secretary of the Treasury has discretion to grant tax exempt status.

If any Posts need assistance in filing form 990N, please see the attachment and feel free to contact BCAL Finance officer Vincent Martorano at vcmsr@aol.com.

It should be noted that Post with normal income in excess of gross $50,000 must ordinarily file forms 990 of 990-EZ.

Vincent C, Martorano
BCAL Finance Officer

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