Tax Facts

4106 / Must a tax-exempt welfare benefit fund apply for recognition of its tax-exempt status?

Yes.

A VEBA or SUB must give notice to the IRS, in the manner required in the regulations that it is applying for tax-exempt status.1 An organization that fails to provide the required notice will not be tax-exempt until it gives notice. Requirements for giving notice are set forth in Temporary Treasury Regulation Section 1.505(c)-1T.

1. IRC § 505(c).

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