IRS PLR: Military Organization Exemption Revoked for Not Meeting Membership Requirements (IRC §501)

A central organization’s tax code Section 501(c)(19) exemption will not apply to an auxiliary unit that does not meet the necessary membership requirements and is not an organization of cadets, the IRS ruled. The requirements are that at least 75% of members be war veterans and at least 97.5% be included in one or more of certain military categories (war veteran, present or former U.S. Armed Forces member, cadet, spouse (including widowed)). The vice president of the unit — a youth organization that runs a community baseball team — in a telephone conversation with the IRS agreed with the ...