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Forms 990 - Governmental 501(c)(9)


Carol V. Calhoun
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I could have sworn I'd seen something about this on one of these boards recently, but the search function is not finding it.

Governmental VEBA gets a ruling that it is exempt under 501©(9). It then proceeds, for reasons best known to itself, to file Forms 990. (Rev. Proc. 95-48 says a governmental plan does not have to file Forms 990.) At a certain point, plan then fails to file Forms 990 for a couple of years. IRS automatically revokes 501©(9) status. When plan complains, IRS says that because status has been revoked, plan needs to file for reinstatement and to request a retroactive reinstatement for reasonable cause and, at the same time, refile for the exemption status.

Given that the plan was never required to file Forms 990 in the first place, is there some way of getting an automatic revocation revoked?

Just to add to the complications, plan in fact filed a new Form 1024 back in March. Two weeks after the filing, plan got a notice saying IRS would be back to them with any questions within 90 days. IRS has not gotten back to them. All calls to the IRS (before the shutdown) resulted in 60-90 minute waits, after which the plan just gave up. Does anyone have the number of an actual human one can contact (once the shutdown is over) to determine the status of a Form 1024?

Employee benefits legal resource site

The opinions of my postings are my own and do not necessarily represent my law firm's position, strategies, or opinions. The contents of my postings are offered for informational purposes only and should not be construed as legal advice. A visit to this board or an exchange of information through this board does not create an attorney-client relationship. You should consult directly with an attorney for individual advice regarding your particular situation. I am not your lawyer under any circumstances.

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  • 3 weeks later...

Carol,

I just took on a new position with a local government which has historically filed form 990 (prepared by our TPA for a fee, of course). We, too, are a governmental VEBA with a 501©(9) determination letter. While I'd love to discontinue an unnecessary filing, I'd rather not run afoul of the IRS. Were you able to resolve your issue with the IRS in a way that would give me hope that I might find quick resolution if the IRS looks askance at my current and future failure to file a fruitless form?

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  • 4 weeks later...

Alas, I have not. My sense is that the particular client erred not only in filing the unnecessary Forms 990 in the first place, but in neglecting to respond to the IRS's initial notices. However, I haven't yet been able to get the Power of Attorney form I need from them in order to pursue this at the IRS.

Employee benefits legal resource site

The opinions of my postings are my own and do not necessarily represent my law firm's position, strategies, or opinions. The contents of my postings are offered for informational purposes only and should not be construed as legal advice. A visit to this board or an exchange of information through this board does not create an attorney-client relationship. You should consult directly with an attorney for individual advice regarding your particular situation. I am not your lawyer under any circumstances.

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