FAMILY READINESS GROUPS AND IRS TAX LAW CHANGES:
R 081845Z AUG 17
FM CNO WASHINGTON DC
SUBJ/FAMILY READINESS GROUPS AND IRS TAX LAW CHANGES//
MSGID/GENADMIN/CNO WASHINGTON DC/DNS/AUG//
NARR/REF A IS OPNAV INSTRUCTION ON FAMILY READINESS GROUPS.//
RMKS/1. Per reference (a), the purpose of a Family Readiness Group (FRG) is
to help plan, coordinate and conduct informational, caretaking, morale-
building, and social activities to enhance preparedness and command mission
readiness and to increase the resiliency and well-being of Sailors and their
families. FRGs are an integral part of a care network to provide services in
support of Service members and their families.
2. Training for FRGs is available through the Navy Fleet and Family Support
Centers (FFSCs) located at Navy Installations. FRG training consists of
eight hours of live classroom training and is divided into five modules:
Leadership Training-Establishing an FRG, FRG Membership Building-Attracting
and Motivating FRG Members, Financial Planning and Fundraising Policies,
Event Planning, and Emergency Response.
3. The topic of FRGs and taxes was recently identified as requiring
clarification. FRGs are volunteer organizations governed by bylaws and may
choose to operate as tax-exempt social welfare organizations. Internal
Revenue Code (IRC) section 501(c)(4) defines a social welfare group as a not-
for-profit organization operated exclusively to promote social welfare.
Prior to 18 December 2015, small organizations could “self-declare” their
status as a 501(c)(4) organizations - meaning they were not required to apply
for official recognition with the Internal Revenue Service (IRS) and could
declare themselves tax-exempt by simply operating within the requirements of
a. Due to the change to IRS Tax Law on 18 December 2015, all 501(c)(4)
organizations must now notify the Secretary of the Treasury within 60 days of
formation through IRS Form 8976, "Notice of Intent to Operate Under Section
501(c)(4),” and pay a $50 fee. Failure to file Form 8976 within 60 days can
result in a $20-per-day penalty, not to exceed $5,000. Organizations may
electronically submit Form 8976 at the IRS website (www.irs.gov).
b. If an FRG is operating as a 501(c)(4) tax-exempt social welfare
organization, the FRG must satisfy an annual filing requirement by 15 May of
each year. FRGs eligible to submit a Form 990-N may do so online. The
Annual Electronic Filing Requirement for Small Exempt Organizations - Form
990-N (e-Postcard) – is available online from the IRS website.
c. Some FRGs have reported receiving letters from the IRS revoking their
organization’s tax exempt status. If an FRG has been notified that its
status has been revoked, the FRG may refer to the reinstatement process found
on the IRS website.
d. It is recommended that FRG leadership consult with a tax professional
regarding any questions about tax exempt status and required filing actions.
FFSCs and Military Legal Assistance Attorneys are not authorized to review or
complete tax documents on behalf of an FRG.
e. Resources, including a FRG Tax Guidance FAQs document, are located
4. Commanders, Commanding Officers, and Officers-in-Charge are requested to
pass this information to command FRGs.
5. Commander, Navy Installations Command point of contact is Ms. Carrie
Mast, Ombudsman Program Coordinator, (202) 433-4701 (DSN 288),
6. Released by VADM J. G. FOGGO, Director, Navy Staff.//