Presentation on theme: "Tax Update for Alumni Classes Rachel L. Williamson, CPA Joined Dartmouth College in June."— Presentation transcript:
Tax Update for Alumni Classes Rachel L. Williamson, CPA Rachel.L.Williamson@Dartmouth.edu Tax@Dartmouth.edu Joined Dartmouth College in June
Tax Update Agenda Maintaining Tax Exempt Status New in Fiscal 2013 Filing Requirements Filing Tips IRS Notices Financial Best Practices Questions
Maintain Tax Exempt Status Tax Exempt Status is generally granted through membership in Dartmouth’s group exemption Timely File Annual Return Read & respond to any IRS notices promptly Do not support or oppose political candidates Provide copy of return if one is requested
New in Fiscal Year 2014 The 990-EZ instructions clarify that short period returns cannot be electronically filed unless it is an initial or final return and the appropriate boxes are checked. 990-N filers that have a change in accounting period must report the change either on Form 990, 990EZ or 1128, or by sending a letter to the IRS.
Important reminders 990-N (e-postcard) filings are available when the class’ average gross receipts are less than $50,000. “Average gross receipts” are calculated using the current year and two prior years gross receipts. The State of New Hampshire does not required an annual filing as long as contributions are solicited only from the class members.
Filing Requirements Annual Federal Tax Filing is required to maintain tax exempt status Failure to file Form 990-EZ or Form 990 may result in fines of $20 per day past the due date to maximum of 5% of gross receipts. Failure to file for 3 consecutive years will result in loss of tax exempt status. Forms are due November 15, 2014. Extension can be filed on Form 8868 for 990 or 990-EZ filing. It is important to maintain accurate record of revenue and expenses to fulfill your fiduciary duty, document requirements for filing, and provide accurate reporting.
Filing Requirements Gross Receipts and AssetsIRS Form Average gross receipts under $50,000.990-N Gross receipts less than $200,000 and total assets less than $500,000. 990-EZ Gross receipts $200,000 or greater.990 Total assets $500,000 or greater990
Informational Returns No Tax 990-N has no penalties for late filing 990 EZ and 990 are subject to fines and penalties for late filing o Publicly Disclosed o 990-T requirement for gross unrelated business income of $1,000 or greater
990-N Simplified filing available to classes Requirements Average 3 year gross receipts $50,000 or less All receipts, including proceeds from sales of securities For groups in existence less than 3 years, different rules apply Maintain a copy of gross receipts calculation
990-N Details IRS filing administered by The Urban Institute Computer based Link to the filing available on the IRS website After setting up profile, you will receive a confirmation email Check spam folder if confirmation not received quickly If notified of rejection, file Form 990-EZ
990-N Details Information Required Organization’s DBA name (Dartmouth Class of XXXX) Mailing address (Blunt Hall) Website (if any) EIN Name & address of principal officer Organization’s Tax Year (June 30, 2014)
990-EZ Schedules required in addition to core form Schedule A (Public Charity Status) Schedule E (Schools) Schedule O (Other information) Schedule B (Contributions) if one or more contributors gave $5,000 or more Schedule G (Fundraising) if special events revenue exceeded $15,000
990 Required schedules are the same as for 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 Contact Alumni Office or Controller’s Office (Tax@dartmouth.edu) for assistance if needed.Tax@dartmouth.edu