I am taking this opportunity to share with all Area 2 Presidents my response to Steve’s inquiry (see below) regarding how to implement the new IRS annual filing requirements for tax exempt organizations whose annual revenues are less than $25,000:
1. If a chapter is a “tax exempt organization,” it has an Employer Identification Number (EIN) issued by the IRS. If your chapter has not applied for, or received, from the IRS a “tax exempt” status and an EIN, it should, in most cases do so ASAP.
2. Regardless of whether a chapter has received a notice in the mail during the last few months from the IRS informing it of a new requirement to file an IRS Form 990-N annually, starting in 2008, the chapter must file a Form 990-N annually, starting in 2008, if it has and EIN.
3. Your chapter may never have updated its original filing as a “TROA” chapter to a “MOAA” chapter with the IRS. Your chapter may not have its current mailing address on file with the IRS. That is your fault, not the IRS. It is your responsibility to ensure that the IRS has you proper chapter name and current address. Just contact the IRS and find out, then submit any necessary corrections.
4. Once you have an EIN, an up-to-date name of your chapter, and a current address on file with the IRS, you need to formally establish a “Tax Year” for your chapter. In most cases, the calendar year ending Dec. 31st is established as your “Tax Year.”
5. Now, you are ready to file an IRS Form 990-N. Your next step is to find out the filing requirements. To do this, just click on: http://www.irs.gov/charities/article/0,,id=169250,00.html . It brings up the issues addressed above that you will need to deal with as you prepare to file the Form 990-N, including EIN, tax year, and naming of a “principal officer.”
6. As you read through this rather straight forward filing requirement in above website, you will be directed to the following website which you will use to actually electronically file your Form 990-N: http://epostcard.form990.org/default.asp .

Jim Torres
Director, Area 2
President, Contra Costa Chapter

Last month we talked about filing requirements for the new IRS Form 990-N. This month we’ll try to simplify some of that guidance.

You need to file this electronic form (there’s no paper involved - it can be filed only via the Internet) only if your chapter or council has been declared tax-exempt by the IRS. The IRS has sent letters to all the tax-exempt organizations it knows about, advising them of this requirement, but if your chapter or council is tax-exempt, the burden is on you to file Form 990-N whether or not the IRS has notified you of the requirement to do so. Changes of address and changes in chapter/council leadership could easily result in an IRS postcard notice going astray.

If your chapter or council is tax-exempt and you have questions about this new requirement, you can e-mail the IRS at tege-eo-efile@irs.gov. This e-mail address is for exempt-organization electronic-filing-related questions only, not accounting or tax-law questions - do not send forms of any kind to this e-mail address.

Additionally, the IRS has provided these toll free numbers for non-profit and tax-exempt organizations that have technical questions:
- Tax-law questions - call 877-829-5500.- E-file technical questions - call the IRS e-Help Desk at
866-255-0654. The MOAA Policy and Procedures Guide recommends that a chapter incorporate as a non-profit organization in its state, and seek Federal tax exemption by applying to the IRS. This requires first obtaining a tax identification number, formally known as an Employer Identification Number, or EIN (even though the organization may have no employees). EINs are required for other functions as well, such as opening a bank account. See Section II, Chapter 1 of the Guide.

As for a chapter’s or council’s tax year, that’s up to each organization to decide, but it makes sense to use the calendar year, as most individuals do, especially with the relatively small amounts of funds that chapters and councils generally deal with. Keep it simple.

Please let us know if you have more questions by e-mailing us at chapters@moaa.org or calling the Council and Chapter Affairs Department at (800) 234-6622.

Col. Lee Lange, USMC-Ret.
Director, MOAA Council & Chapter Affairs