IRS Group Exemption Update

Last summer, with the concurrence of the Board, we began more aggressive pursuit of action on our Group Exemption Request. We hoped for speedy resolution on an issue that seems to be a relatively simple matter, and yet as this is written, we are approaching the third anniversary of our request (10 July 2006). The latest exchange of letters took place last month, and our attorney has requested the case be moved to the D.C. office if we do not resolve matters in a telephone conference yet to be scheduled in early June. Thus for the present, chapters remain 501 (c)(19) organizations, while AFA continues to operate as a 501 (c)(3). We continue to hope to have the situation resolved soon.

On a somewhat related matter, some units have asked about the 990-N e-postcard filing. Guidance on that front has not changed – if you have filed, or encounter no difficulties in filing, go ahead and file. If you have any difficulties (the most common one is the data base not recognizing your EIN), we do not believe it is worth the effort and frustration to pursue it when we still have over a year until any penalties are operable. By then we hope to be able to resolve those difficulties in one way or another.

You may be assured that we will let you know as soon as we have definitive word on the group exemption front.

Return to the Table of Contents