Does the national file its chapters' returns?

No. Each chapter files its own 990-series return. The national's job under Rev. Proc. 2026-8 is supervision: annually obtaining and reviewing each chapter's financial and filing information, educating chapters in writing, maintaining the directory, and submitting the SGRI. Dueflow supports both sides.

Does Dueflow file returns with the IRS?

No. Dueflow prepares workpapers, determines the right form, tracks deadlines, and supports CPA review – but returns are signed and filed by the chapter's officer or its CPA. Dueflow is not an IRS e-file transmitter.

Is it true we lose our group exemption if chapters don't file?

Not at a fixed threshold. A chapter that misses three consecutive annual filings is automatically revoked, and the IRS can terminate a group exemption if more than 50% of its subordinates are revoked. The day-to-day requirement is different: documented general supervision of every covered chapter, every year.

The Supplemental Group Ruling Information – the annual update a national sends the IRS listing subordinates added to or removed from the group ruling, name/address changes, and auto-revocations, due 30 to 90 days before the close of the national's accounting year. Dueflow tracks the lists all year and flags the submission window.

What about chapters that don't keep their books in Dueflow?

Filing-status oversight works regardless – exemption and revocation checks come from IRS public records. For financial supervision, nationals can record chapter-reported figures (gross receipts, member vs. nonmember income) directly, so off-platform and 990-N chapters are covered in the same evidence record.

When do we need to be compliant?

Rev. Proc. 2026-8 took effect January 20, 2026, with a transition period ending January 22, 2027. Nationals should be exercising and documenting general supervision – and have their SGRI process in order – before that date.

Tax Filing & Compliance

Group exemption compliance, chapter by chapter.

Rev. Proc. 2026-8 makes every national organization prove it actively supervises its chapters. Dueflow gives chapters the tools to prepare their own returns – and gives nationals the oversight, evidence, and SGRI record the IRS now requires.

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Updated August 31, 2026

Jan 22, 2027Rev. Proc. 2026-8 transition deadline
3 yearsof missed 990s before auto-revocation
>50%chapters revoked can end a group exemption
1annual SGRI submission per national

The problem

The IRS rewrote the rules for group exemptions

Most fraternity and sorority chapters are tax-exempt through their national's group exemption letter – not their own IRS determination. Under Revenue Procedure 2026-8, that arrangement now comes with teeth: the national must exercise documented general supervision over every covered chapter – annually obtaining and reviewing its finances and activities, verifying its 990-series filings, providing written compliance education, and submitting the Supplemental Group Ruling Information (SGRI) each year. Nationals have until January 22, 2027 to comply. And if more than half of a group's chapters are auto-revoked for failing to file, the IRS can terminate the entire group exemption.

With Dueflow

Both sides of the obligation, in one platform

Chapters prepare their own 990-series returns in Dueflow – workpapers built from their books, CPA review, filing history, exemption monitoring. Nationals get a live compliance dashboard over every chapter plus their own annual workflow: the subordinate registry, supervision log, compliance education distribution with retained copies, chapter-reported financials for off-platform and 990-N chapters, and the SGRI lists ready for each year's submission window.

Chapters prepare their own returns
Each chapter's 990-N/990-EZ determination, workpapers, and filing history are built from its own books – a CPA reviews, the chapter officer signs and files.
National compliance dashboard
Filing status, exemption status, and supervision coverage for every chapter in the group – before revocation risk builds anywhere.
Supervision evidence log
Record every financial review, activity review, filing check, and education touch per chapter, with per-year gap detection – the record §4.02(3) asks about.
Compliance education, distributed
Compose the required annual compliance communication once; Dueflow emails it to every chapter's admins and retains the exact copy and distribution list as evidence.
Chapter-reported financials
Collect gross receipts and member vs. nonmember income from chapters that file the 990-N or keep books elsewhere – with 501(c)(7) 35%/15% review indicators computed for you.
SGRI, ready every year
Additions, removals, changes, and auto-revocations tracked all year, so the annual SGRI submission is an export inside its 30–90 day window – not a scramble.

Who does what

Group exemption compliance has four parties. Dueflow keeps each one's job clear – and keeps the evidence.

Step 1
Chapters prepare and file
Each chapter determines its form (990-N, 990-EZ, or full 990), builds workpapers from its Dueflow books, and its officer signs and files. Dueflow prepares; it does not transmit returns.
Step 2
CPAs review
A CPA can be brought into any chapter's return for review and sign-off before filing – the same model national accounting partners use today.
Step 3
Nationals supervise
The national reviews each chapter's finances and filings, distributes annual compliance education, maintains the chapter directory, and files the SGRI – all recorded as evidence in Dueflow.
Step 4
The IRS gets what it asked for
Documented general supervision per chapter, an accurate annual SGRI, and no surprises on the auto-revocation list.

What Rev. Proc. 2026-8 actually requires of nationals

Effective January 20, 2026 (with a transition period to January 22, 2027), a national organization holding a group exemption must exercise either general supervision or control over every subordinate covered by its letter. For federations of independently-run chapters, that means general supervision: annually obtaining information about each chapter's finances, activities, and 990-series filing compliance, reviewing it, and providing each chapter written information about the requirements for keeping its exempt status.

The national must also keep its chapter directory current with the IRS through the annual Supplemental Group Ruling Information submission – reporting additions, removals, name and address changes, and any chapters that have been auto-revoked – filed 30 to 90 days before the close of the national's accounting year, including an affirmative 'no changes' statement in years with nothing to report.

None of this is a percentage quota. The obligation runs chapter by chapter. The percentage that matters is the auto-revocation backstop: a chapter that misses three consecutive 990 filings is automatically revoked, and if more than 50% of a group's subordinates end up revoked, the IRS can terminate the group exemption entirely.

Who files what – and what Dueflow does and doesn't do

Each chapter files its own annual return. Chapters with gross receipts of $50,000 or less generally file the 990-N e-Postcard; larger chapters file the 990-EZ or full 990. Dueflow determines the right form from the chapter's books, assembles the workpapers, and tracks the deadline – but the chapter's officer (or a CPA the chapter engages) signs and files. Dueflow is not an IRS-authorized e-file transmitter and never files a return on anyone's behalf.

The national does not file its chapters' returns either – it files its own 990 and the group's SGRI, and supervises. That distinction matters: it is what separates a group exemption held in good standing from one at risk, and it is why Dueflow's national tools are built around evidence – retained education copies, dated supervision entries, chapter-reported financials – rather than around filing on chapters' behalf.

For 501(c)(7) social clubs, Dueflow also computes the nonmember-income review indicators nationals watch (the 35% gross receipts and 15% general-public guidelines) from chapter-reported figures – as a review aid, not a legal determination.

Chapters: prepare in Dueflow, CPA reviews, officer files
Nationals: supervise, educate, maintain the directory, file the SGRI
Dueflow: workpapers, deadlines, evidence, dashboards – never the filer
IRS: receives each chapter's return and the national's SGRI

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Group exemption compliance, chapter by chapter.

The IRS rewrote the rules for group exemptions

Both sides of the obligation, in one platform

Chapters prepare their own returns

National compliance dashboard

Supervision evidence log

Compliance education, distributed

Chapter-reported financials

SGRI, ready every year

Who does what

Chapters prepare and file

CPAs review

Nationals supervise

The IRS gets what it asked for