You are a volunteer fire department if you are a separately chartered legal entity to fight fires and are not a political subdivision (can't levy taxes on your own.)

The IRS rules require volunteers to do three things:

1. Provide fire fighting to a political subdivision via a written agreement,
2. Have the political subdivision acknowledge the financing, and
3. Hold a meeting open to the public to discuss the financing.

You may be required to pay back interest, taxes, and penalties if audited by the IRS.

We offer a unique service to help you legally meet all the requirements. We provide you with documentation to have in case your borrowing is audited and we retain copies in case you need them.

You hold a public meeting and let any interested party learn and comment on your financing. They can not stop you from proceeding.

You have to abide by the Open Meetings (aka Sunshine) Act by allowing the public to be aware and comment on your borrowing of tax-exempt funds.

The IRS rules requires the local political subdivision to acknowledge the borrowing since you are their fire department and ensures that you are a valid volunteer department.

Then you will not be in full compliance with the IRS rules regarding volunteer fire departments and will be possibly subject to fines and penalties, or will have to borrow at higher non tax-exempt interest rates.