"28 Percent - OUCH!!"
"Its best to comply than to pretend to be unaware"
Local associations failing to produce W-9 for contracting services, can have a whopping "28 PERCENT" withheld by the payer. Why should schools be in jeopardy for association's failure to comply with IRS directives. Face it...you are registered or unregistered as an unincorporated/incorporation non-for-profit,
without tax exemption. Why take the chance to save a few dollars. Who benefits mainly from not having 1099 filed? The losers can be the association, members, and schools. Question is this. Is non-compliance with IRS directives worth the risk?
Many associations have their membership in a risk bubble. Each member may or may not know they are in a risk taking situation. Board members of Local associations may not come out and say it directly, but they will drop a hint. Like we do not make any money, we pay officials out of another bank account. With that being said, you can rest assure yourself that the association is not complying with federal and state income reporting.
Associations that do not apply for tax exemption, just to save $500 or $800, over the years will regret doing so. The $800 investment over the years would be well worth it. Would have been easier to take $800 from association's dues and gotten "tax exemption".
Many associations have their membership in a risk bubble. Each member may or may not know they are in a risk taking situation. Board members of Local associations may not come out and say it directly, but they will drop a hint. Like we do not make any money, we pay officials out of another bank account. With that being said, you can rest assure yourself that the association is not complying with federal and state income reporting.
Associations that do not apply for tax exemption, just to save $500 or $800, over the years will regret doing so. The $800 investment over the years would be well worth it. Would have been easier to take $800 from association's dues and gotten "tax exemption".