American Legion posts must file 990 annually

Minnesota American Legion HQ has received a lot of calls asking whether posts are required to file taxes. The answer is YES, YES, YES!

All posts fall under The American Legion’s 501(c)(19) umbrella, and to keep that nonprofit status, taxes need to be filed with a 990 return annually just like any other organization.

If a post has less than $50,000 of income, it is required to file a simple 990N postcard. The easiest way to file this is through an account on the IRS website. Once logged in, the site will ask a variety of questions.  When asked whether there is more than $50,000 of income, clicking “no” will automatically generate the 990N.

If a post has more income, then a more extensive 990 is required. I highly recommend consulting an accountant for this because it can become cumbersome, as you know from filing your personal income taxes. If you contact the Department of Minnesota Headquarters, you will be directed to explore the IRS website or call your local accountant for the most accurate information.

The bottom line is that all posts must file a 990 tax return to maintain their 501(c)(19) nonprofit status. It doesn’t matter whether your post made money, lost money or stayed the same. You must file the 990 annually. No exceptions.

If you don’t have an accountant, I suggest you speak to your local nonprofit organizations and ask whom they use. That way, you end up with someone who is familiar with the nonprofit world.

Rachael Hill is the comptroller for the American Legion Department of Minnesota. She is a member with Elk River Post 112.