American Legion Post 75 in Gloucester still contends it should have tax-exempt status even though it paid a Gloucester County tax bill for more than $1,800 last week. Lack of funds has forced the group to put on hold, at least temporarily, sponsorship of two baseball teams and selecting representatives for Boys and Girls State.

The Internal Revenue Service has questioned the local group’s tax-exempt status, not that of the parent organization, said commander Robert Berry.

Post adjutant Bill Kossler said that apparently the tax-exempt status fell into question with the Internal Revenue Service more than two years ago. Then, the IRS notified the post that the tax-exempt number it provided on a form to the IRS did not match the number the IRS had on file for the group.

Later, the IRS said that since the local post had not filed a special tax-exempt form for three straight years, it would stand to lose its tax-exempt status, which it did last spring. Kossler said he and, more...