Tuesday, August 23, 2011

Procedures for Regaining Tax-Exempt Status


Three years ago the IRS began requiring small non-profit organizations, and the local branches of larger non-profit organizations, to file an electronic tax return:


The IRS rule established regarding these filings, which were publicized by General Headquarters in the Confederate Veteran magazine, on the SCV Telegraph and on the front page of scv.org, providing instructions on how to file the E Postcard, emphasized that these annual filings were mandatory and could only be accomplished on line.

In subsequent years the information regarding the filing was updated by an IRS pronouncement that any organization or local branch, under the Group Exemption Number of a national non-profit, that did not file at least once in the last three years would have its non-profit status revoked.

Now that the three years time frame has passed since the e-filing rule for Form 990 was enacted, camps that have not filed the required form are receiving letters from the IRS stating that their tax exempt status has been revoked.

SCV camps who receive this letter which would like to reinstate their tax exempt status will need to complete IRS Form 1023, which is essentially an application for recognition of Exemption under Section 501(c)(3). You may access this form at:


This is a long form that requires patience to go through to complete the numerous entries required.

The form states that a $400 application fee is required; however, SCV Headquarters has been informed that this fee will be $100 for entities with less than $25,000 in annual revenue.

The only way for a camp which has been notified by the IRS that it has lost its tax exempt status to regain its tax exempt status is to file Form 1023. We regret that there is no way for General Headquarters to assist in this matter.

Chuck Rand
Adjutant In Chief