Dartmouth College Alumni Leaders Preparing Your Class, Club or Group Tax Return October 6, 2015

Agenda 1. Welcome and Introductions 2. Overview of Tax Exemptions 3. Inclusion in Dartmouth’s Group Exemption 4. Maintaining Tax Exempt Status 5. New in Fiscal Filing Requirements 7. Filing Tips 8. IRS Notices 9. Questions

Introductions Rachel Williamson, Sr. Tax Analyst

Overview of Tax Exemptions  What does it mean to be a tax-exempt organization?  Income tax exemption  Federal  State  Sales tax exemption

Inclusion in Dartmouth’s Group Exemption  Why be included in Dartmouth’s Group Exemption?  Can a class, club or group (club) obtain exempt status without being a part of Dartmouth’s group exemption?  How does a club come to be included in Dartmouth’s Group Exemption?  Can a club use a year end other than June 30?  Can a club use Dartmouth’s sales tax exemptions?  What happens when a club has lost its tax exempt status, typically due to failure to file?

Maintaining Tax Exempt Status  Timely file the required Annual Return  Read & respond to any IRS notices promptly  Do not support or oppose political candidates  Provide a copy of the Annual Return if one is requested  Follow the constitution of the club

New in Fiscal 2015 and Important Reminders  There were no major changes to the 990-series forms  Remember  Form 990-EZ filers cannot electronically file a short period return unless it is marked as either an initial or final return. 990-EZ filers that need to change the accounting period, will need to filed the short period return on paper.  Form 990-N filers that need to change the accounting period must either file Form 990-EZ on paper, file Form 1128, or send a letter to the IRS explaining the change in accounting period.  Form 990-N (e-postcard) filings are only available when the club’s average gross receipts are less than $50,000. Average gross receipts are calculated using the current year and two immediately preceding years’ gross receipts.

Reminders (continued)  The State of New Hampshire does not require an annual filing as long as contributions are solicited only from the club members (including spouses and matching contributions from employers). The Attorney General’s office is tasked with protecting “the public’s interest in the property and assets committed to charitable purposes in the State”.  I cannot provide advice relative to the filing requirements for clubs active in other states.

Filing Requirements  Annual Federal tax filing is required to maintain tax exempt status  Failure to file Forms 990 or 990-EZ may result in fines of $20 per day past the due date to a maximum of 5% of gross receipts.  There is no monetary penalty for failure to file Form 990-N (e-postcard)  This does not mean that an organization need only file once every three years  Failure to file for 3 consecutive years will result in the loss of tax exempt status  Forms are due November 15. Clubs that need to file Forms 990 or 990-EZ can request an extension of time to file using Form Clubs that file Form 990-N cannot file for extension, though there is no penalty for late filing.

Filing Requirements (continued) Gross Receipts and AssetsIRS Form Average gross receipts less than $50, N Annual gross receipts less than $200,000 and total assets at year end less than $500, EZ Annual gross receipts $200,000 or greater 990 Total assets at year end $500,000 or greater 990

Filing Tips  Forms 990, 990-EZ and 990-N are informational returns, no tax is assessed  Form 990-N has no penalties for late filing  Forms 990 and 990-EZ are subject to fines and penalties for late filing  Form 990-T is an income tax return and must be filed when gross receipts of unrelated business income is $1,000 or greater.  Form 990-T filing could also trigger state income tax filing  Form 990-series returns are publicly disclosed and must be made available upon request. Schedule B is not open to public disclosure.  Use the Treasurer’s Report as the basis for the preparation of the return

Filing Tips – 990-N  Simplified filing  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, the average gross receipts test is calculated differently  Maintain a copy of gross receipts calculation, in the event of an audit

Filing Tips – 990-N (continued)  Details:  IRS filing administered by The Urban Institute  Computer based  A link to the filing is available on the IRS website  After setting up the profile, you will receive a confirmation  Check spam folder if confirmation not received quickly  If notified of rejection, file Form 990-EZ  New organizations may need to call the IRS for additional assistance with first time set up

Filing Tips – 990-N (continued)  Information required  Organization’s DBA name (e.g. Dartmouth Class of XXXX)  Mailing address (e.g. Blunt Hall)  Website (if any)  EIN  Name and address of principal officer  Organization’s tax year (June 30, 20XX)

Filing Tips – 990-EZ  Schedules required in addition to core form  Schedule A (Public Charity Status) – All eight pages must be filed, even if mostly blank  Schedule E (Schools)  Schedule O (Other information)  Schedule B (Contributions) if one or more contributors gave $5,000 or more individually  Schedule G (Fundraising) if special events revenue (e.g. auction) exceeds $15,000

Filing Tips – 990  Required schedules are the same as for Form 990-EZ  Form 990 is complex and unique to each club  If required to file, we recommend consultation with a tax advisor

IRS Notices  Failure to file  Missing or incomplete information  Missing Schedule A or Schedule E  Required boxes not checked  Contact Alumni Office or Controller’s Office for assistance if

Questions?