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PATAX
Level 12
October 19, 2021
Solved

Form 990 and 990T Efile rejection

  • October 19, 2021
  • 5 replies
  • 27 views

2020 Returns, fye 6/30/2021, rejected by IRS because they claim that the 501 c-19 code does not match what they have in the e-file database... This is a local VFW and we have always used 501C19 when the returns were mailed... Now they have rejected it...EIN applied for on January 31st 1963 per IRS... would appreciate it if anyone has Insight on this. Thank you very much.

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Best answer by IRonMaN

Does your organization show up on the IRS list somewhere?

Exempt Organizations Business Master File Extract (EO BMF) | Internal Revenue Service (irs.gov)

5 replies

sjrcpa
Level 15
October 19, 2021

If you have the IRS letter (since you have the date), what section is on it?

Has the Organization changed their name?

The more I know the more I don’t know.
PATAX
PATAXAuthor
Level 12
October 19, 2021

The date that I referenced appeared on a June 7th 2021 IRS notice where they incorrectly said they did not receive the 2019 returns... In the long letter, they referenced the January 31st 1963 date as the date that they applied for Ein but they do not list the 501 C code section...

IRonMaN
Level 15
October 19, 2021

"we have always used 501C19 when the returns were mailed"

They get a little more picky when things are e-filed 😉

Like Susan said, see if you can find the original letter to find out what they really are in the eyes of God---------- oops, I mean the IRS.

Slava Ukraini!
PATAX
PATAXAuthor
Level 12
October 19, 2021

That's a good idea I am going to try to find that and maybe call the Quartermaster but they have changed Quartermasters over the years so you know how that goes

IRonMaN
Level 15
October 19, 2021

"they have changed Quartermasters over the years so you know how that goes"

The joys of dealing with small nonprofits 😁

Slava Ukraini!
PATAX
PATAXAuthor
Level 12
October 19, 2021

@IRonMaN @sjrcpa found something very interesting in the old file... The 2006 IRS 990 package with the instructions and blank forms. On the cover of booklet it states organizations exempt from income tax under Section 501 C 4 of the Internal Revenue code.. I'm not sure if that is correct but that appears to be the code that the IRS has or they wouldn't have sent them that booklet.... I don't know what happened back in 1963 because I wasn't around yet so I may have to go with this 501 C 4 , what do you think?

IRonMaN
Level 15
October 19, 2021

A C-4 is a social welfare organization and a C-19 is a veteran's organization.  Who knows, when it was established maybe they split the difference and went with a C-11 or a C-12. 😲

Slava Ukraini!
IRonMaN
IRonMaNAnswer
Level 15
October 19, 2021
Slava Ukraini!
PATAX
PATAXAuthor
Level 12
October 20, 2021

I found this information which may be useful: prior to the passage of the act of August 29th 1972 most War veterans organizations were recognized as 501C 4... It appears after this date they are now 501C 19 entities

Level 4
July 19, 2022

I have a similar problem with a different twist.  Doing a 990 for a Masonic organization.  They had been incorrectly using 501(c)(8) code, which is for a fraternal benefit society such as Woodmen of the World (basically an insurance organization set up under a fraternal umbrella).  In 1969, Congress established/created the 501(c)(10) to differentiate the organizations that do insurance vs those that don't.  Most masonic organizations are 10's, as they aren't in the life/health insurance business.  So, I put 10 in the place designated for the organization type, and the e-file is rejected because of it.  Putting an 8 on the form would be knowingly incorrect, which is not a good way to conduct business.  IRS now requires e-file for 990's; how do I get the matter resolved?

sjrcpa
Level 15
July 19, 2022

As stated above:

See how they are listed in the IRS database

Get a copy of the Determination Letter

The more I know the more I don’t know.