Transcript Tax Filings and Alumni

Dartmouth College
Tax Update for Alumni Classes
September 29, 2012
Hanover, NH
Tax Update Agenda
•
•
•
•
•
•
•
Maintaining Tax Exempt Status
New in fiscal 2012
Filing Requirements
Filing Tips
IRS Notices
Financial Best Practices
Questions
Maintain Tax Exempt Status
• Tax Exempt Status is granted through
membership in Dartmouth’s group exemption
• File Timely Annual Return
• Read and respond to any IRS notices promptly
• Don’t engage in activities outside exempt
purpose
• Don’t support or oppose political candidates
• Provide copy of return if one is requested
New in Fiscal Year 2012
• Groups with gross receipts less than $50,000 meet
the requirements to file Form 990-N, or “e-postcard”.
• If your group accepts merchant card payments you
will receive form 1099-K for calendar year in January
of 2013 for calendar 2012 credit card deposits.
• The IRS has revoked tax exempt status from several
classes and clubs due to three years of consecutive
non-filing of 990-series returns.
Filing Requirements
• Annual Tax Filing is required to maintain tax exempt status
• Failure to file may result in fines of $20 per day past due date
to max. of 5% of gross receipts
• Failure to file for 3 years will result in loss of tax exempt status
• All forms are due November 15, 2012
(extension can be filed – form 8868)
• Important to maintain accurate records of revenue and
expenses to fulfill your fiduciary duty, document requirements
for filing, and provide accurate reporting
Filing Requirements
Required IRS form is based on criteria below:
Gross Receipts and Assets
Gross receipts under $50,000
Gross receipts less than $200,000
and total assets less than $500,000
Gross receipts $200,000 or greater
Total assets $500,000 or greater
IRS Form
990-N
990-EZ
990
990
Informational Returns
• No Tax
– 990-N no penalties for late filing
– 990-EZ and 990--Subject to fines and penalties for
failure to file
• Publicly Disclosed
• 990-T Requirement for unrelated business
income of $1,000 or greater
990-N
• Simplified Filing Available to Alumni Classes
• Requirements
– Average 3 Year Gross Receipts $50,000 or less
• Fiscal 2011, 2010, 2009
• All receipts from all sources not reduced by any
expenses
• If group has been in existence for less than three years
different rules apply
• Maintain a copy of gross receipts calculation
990-N Details
•
•
•
•
IRS Filing Administered by Urban Institute
Computer Based
Set up profile, receive confirmation email
Feedback
– Check your spam folder if you do not receive a
quick reply
– Rejection—not on IRS records
• File a 990-EZ
990-N Details
• Information Required
– Organization’s DBA Name (Dartmouth Class of
XXXX)
– Mailing Address (Blunt Hall)
– Website (if any)
– EIN
– Name and Address of principal officer
– Organization’s Tax Year (June 30, 2011)
990-EZ
Schedules Required in Addition to Core Form
– Schedule A (Public Charity Status and Public Support)
– Schedule E (Schools)
– Schedule O (Checkboxes)
– Possibly Schedule B (Contributions)
• If one donor gave $5,000 or greater
– Possibly Schedule G (Fundraising Activities)
• If special events gross revenue > $15,000
• Reported on line 6a of main 990-EZ form
990
• Required Schedules
– Same as 990-EZ
• Form 990 is complex and unique to each group.
• If required to file, we recommend consultation with
a tax adviser.
IRS Notices
• Failure to file
• Missing or incomplete information
– Missing Schedule A or E
– Required boxes not checked
• Schedule B
• Contact Alumni Office or Controller’s Office
([email protected]) for assistance if needed
Financial Best Practices
• Annual review of by-laws to make sure your Class is complying
with the by-laws, including formal documented meetings
• Keep accurate records of all revenues, expenses, and assets
• Bank accounts should use the class EIN number and have at
least 2 officers listed as signors for all accounts
• Reconcile all bank accounts, investment accounts, and cash
funds at least annually
• If the class has a substantial amount of activity in the treasury,
it wouldn’t hurt to arrange an audit of the books periodically.
Financial Best Practices
Treasurer’s report:
• The treasurer should give a financial status update at every
board meeting and, ideally, provide quarterly reports.
• At the end of the fiscal year, a final report should be
generated and presented to the board.
• Copies of the final report should be sent to Alumni
Relations to maintain historical records.
Merchant Accounts
• If your class accepts credit cards, make sure you have
procedures that are PCI compliance
Questions