Finances and Taxes

The information on this page is to provide links to resources for post finance officers/adjutants.  We recommend that posts consult an accountant to ensure the post is compliant with all U.S. Internal Revenue Services rules and tax procedures concerning American Legion Posts.

What are the duties of the post finance officer?

The finance officer should be honest and have experience in handling financial affairs. The post depends on fiduciary integrity and should acquire expert advice in formulating and administering its financial policy.

The finance officer usually serves as the chair of the finance committee and is in charge of all receiving and disbursing of post funds. The post adjutant, in all matters relating to finance, should carry on the work in close correlation with the finance officer.  Both officers must be covered by adequate bond. Department headquarters should be consulted for blanket bond arrangement. Post accounting forms are available to meet the requirements of American Legion posts in maintaining a correct and permanent membership and finance record. Because of their simplicity, they require no special knowledge of bookkeeping or accounting. Consult the Emblem Sales catalog for prices and detailed descriptions, or go online to emblem.legion.org.

Be prompt in remitting national and department per capita fees and cards to department headquarters. it is essential the finance officer maintain accurate financial records for all post operations and activities.

The latest post audit, post bond, and post officer list can be found by clicking here.

Federal Forms/Information Sites

How do I apply for an Employer Identification Number/EIN? – Click here

Check the status of your tax exempt organization- here

Annual Tax Return for Nonprofit Organizations – explanation

Resources and tools for filing Form 990 – click here

Understanding 990EZ Video Tutorials, by David McRee, CPA. – Click here

Mr. McRee is not associated with the American Legion, but is known by the current chairman of the finance committee to help posts understand the 990 forms and processes. Click his playlist on his channel and watch the IRS Form 990-EZ tutorial videos.

Reinstatement of Tax Exempt Status – click here.  If your post has lost it’s tax exempt status.  The department recommends the post seek assistance from a tax professional or certified public accountant.

Application for Recognition of Exemption Under Section 501 (a) (January 2018)

Do you need to change the address of the responsible party to your tax-exempt organization with the IRS? Use IRS Form 8822-b

State of Michigan Forms/Information Sites

Sales Tax Policy in Michigan concerning 501  (c)(19) organizations – click here

State of Michigan Department of Licensing and Regulatory Affairs (LARA) Business Entity Search information

American Legion Correspondence on Finances and Taxes

Letter template to the National Judge Advocate to be reinstated on the IRS list.

Department of Michigan 501 (c)(19) tax determination letter

Training Material from Finance Training presented in September 2017

Financial Reporting Compliance Training – powerpoint slides

Quick Reference Guide-powerpoint slide

IRS information about Automatic Revocation of Tax-exempt Status