Understanding the New IRS Rules for Group Exemptions

Join the American Fraternal Alliance as Todd Martin and Jarrod Anderson of Pierson Ferdinand LLP review and answer questions regarding new IRS rules for group exemptions (Revenue Procedure 2026-8). For fraternal organizations exempt under IRC § 501(c)(8), the group exemption is the backbone of tax compliance across the lodge system. Every fraternal organization operating under a group exemption is affected and should be prepared to come into compliance by January 22, 2027.

Key Changes You Need to Know

• Stricter affiliation and oversight standards

  • Clearer definitions of “affiliated with” and “subject to general supervision and control”

  • New expectations for annual information gathering from subordinate units

• Uniform purpose statement requirement for all subordinates

• New annual filing requirement: Supplemental Group Ruling Information (SGRI)

  • Mandatory electronic submission

  • Filing must occur within a specified annual window

  • Functions as a “roll call” of all subordinate lodges

  • Timely reporting of newly formed or acquired lodges is essential

Presenters