If audited, a post must show proof of all members eligibility or be fined.
The IRS now requires American Legion posts to maintain dates of service and character of service records for all members. Please review the examination procedures for auditing veterans’ organizations by clicking here. You will have to scroll past the table of contents to reach "Veterans’ Organizations 4.76.26.
The penalty for not having the required proof of eligibility is, apparently, $1,000 per day.
Note: References to social members do not apply to The American Legion because they are prohibited in our organization.
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