Fraternity-Testvériség, 2005 (83. évfolyam, 1-4. szám)
2005-04-01 / 2. szám
Page 3 Fraternity-Testvériség Report of the Secretary-Treasurer One of my most enjoyable responsibilities as a National Officer is to visit the Branches where we are licensed to sell life insurance and annuities. Thus, I was recently privileged to attend meetings in New Jersey, Indiana, Pennsylvania, Michigan and Ohio. At these meetings, members of our Board of Directors domiciled in these states also attended. Presentations were made by Chairman George Dózsa, Director James Szuch, Fraternal Coordinator Judit Zambo, and Underwriter Erika Mason. I also made a few remarks about our Federation’s financial status. 1 find these branch meetings to be beneficial so that we learn of your views and concerns. Moreover, it reinforces my dedication to the Federation to know that we do not just sell our products, but that we try to nurture and preserve our Flungarian heritage and culture. We have been here for over 100 years and God willing, we will continue to thrive for many years to come. Thank you for keeping our Hungarian roots nourished and strong. Leslie L. Megyeri Home Office News We are sad to announce that Elizabeth Pota, valuable employee of the HRFA Home Office since 1976, retired on June 1, 2005. Elzike was the Head Bookkeeper of our organization, managed premium income and calculated commissions on Elizabeth Pota a weekly and monthly basis. She cross-trained the staff to learn to use Access, the computer program we use to keep track of policy holders’ information. She reminded us constantly that every card we process is "a person." In all, her valuable insight taught us patience and understanding in resolving tough situations. We will miss her dearly and wish her all the best on her retirement. E 1 i z k e ’ s Eva Princi replacement is Eva Princi, who started to work at our Federation on April 18. We extend a warm welcome to her and hope she will remain a longtime employee of the HRFA. Fraternal Benefit Societies’ Tax Exempt Status is Under Attack By Leslie L. Megyeri On January 27, 2005, the staff of the Joint Committee on Taxation, U.S. Congress, released its report entitled “Options to Improve Tax Compliance and Reform Tax Expenditures.” This report is a misguided attack on the IRS 501c (8) tax exemption for fraternal organizations. The report claims that fraternal benefit societies that provide insurance are engaged in activities that are commercial rather than fraternal in nature. The report further claims that the tax-exempt status of fraternal benefit societies providing commercial-type insurance gives them an unfair competitive advantage against commercial insurance companies. The report also attacks the fraternal aspect of these societies by asserting that membership is established simply by purchasing an insurance product. It wholly ignores the charitable aspect of fratemals which provides millions of dollars and thousands of volunteer hours to entire communities. This is not the first instance that the fraternal benefit societies tax exempt status of the Revenue Act of 1913 was attacked. On January 15th, 1993, the U.S. Department of Treasury issued its report to the Congress on fraternal benefit societies. This report similarly questioned the justification for continuation of fraternal benefits societies’ tax exemption. This report erroneously concluded that many of the societies’ combined fraternal and charitable activities appear to be more fraternal in nature. It concluded that the charitable activities of
