A recent IRS audit revealed that several NJ VFW Districts and Posts have lost their non-profit status, some as far back as 2008. Commanders, please ensure that the required IRS 990 filings are completed and submitted for the previous tax years.
Attached is the VFW Quartermaster Guide to Federal Tax Info. Please review and follow this guide.
Be advised that no District or Post has been authorized to be covered under this Department’s Group “Blanket” Exemptions. All units in this Department are required to file tax documents individually.
Attached is a recent newspaper article regarding an increase in revoked tax-exempt status for non-profit organizations.
Several posts within New Jersey have recently been individually audited, some with violations of the tax code. The most common violations are not reporting “Unrelated Business Income”, having “Social Members” and Non Reporting or Non Payment of Payroll Taxes.
STATE OF NJ WARNING
Two posts in NJ have recently been fined the minimum penalty of $ 7,500.00 for distributing Poppies without a current NJ charities registration CRI 200 or 300. Joe Orlando (Dist 16) suggests labeling Poppy cans with the EIN and CRI numbers in the event a member is questioned while on a Poppy drive.
Lastly please ensure your District or Post is Incorporated and that your annual incorporation filing with the State of NJ is up to date.