The below is for informational purposes only, Information is not the same as legal advice,
do consult with an tax attorney or IRS licensed Enrolled Agent for TAX clarifications.
Nothing in this page is intended to be legal advice in any circumstances.
There is no contractual or tortious relationship between you the reader and myself or any person contributing
to this electronic document and no contributor will have any liability if you should rely on anything you read here.






"IRS Closes Loophole in EIN Issuance, Organizations Must Name A "Responsible Party"


“Transparency and accountability are public requirements for registered nonprofits.
It's A Privilege, Not A Right, To Be A Nonprofit Organization”

Unincorporated and Incorporated Associations Are ACCOUNTABLE
With/Without IRS Determination Letter
Must File
IRS Form 990 or Form 990EZ or IRS Form 1120
NO EXCEPTIONS!!





Form 1099-MISC and Form 990 Due Dates
Schools, rec depts, youth leagues, sends copy B of Form 1099-MISC to associations
by: January 31, 2013
Associations sends copy 2 of 1099 to umpires, referees, etc
by: 31 January 2013
Sends copy A of Form 1099-MISC to IRS
By: February 28, 2013
Sends copy 1 of Form 1099-MISC to state revenue bureau
By: February 28, 2013
Tax-exempt sends 2009 or 2010 Form 990/990EZ to IRS
Private associations - file Form 990-PF
Deadline: May 15, 2013

Form 990 Online

Are you a local sports association with public and private schools as clients, providing services to recreation leagues, etc,. And the association's gross receipts amounts to $5000 or more, two out of three years, (including dues, fines, registration fees). Plus the association , does not issue Form 1099, provide Form W-9 to clients, retain Form W-9 from each officials, never filed a Form 1023 and Form 990. The leadership has SCREWED themselves and the current board members, possibly former board members too.

"No Tax Exemption Equals Paying Corporate Tax"


Take the

IRS Gross Receipt Test

Reference IRS Publication 557,
Page 22, Column 3 > > > >



Take the

IRS Gross Receipt Test

Reference IRS Publication 557,
< < < < < Page 22, Column 3

Consult with an tax attorney, licensed IRS Enrolled Agent, and/or Certified Public Account for legal clarifications.
Associations should consult with a professional, kitchen table style DIY does not fulfill obligations.


Reference GHSA Bylaws, para 4.52(b)(3)
An approved officials association must handle its finances through a central banking account, and should distribute IRS 1099 forms to all members. Every officiating association must have a Federal Tax Identification Number on file with the GHSA office.

Counter Point:   Without oversight, no 1099 from schools or school districts, association board is free to not issue 1099, and not report transactions to the IRS.

Local Officials Associations must operate as a legal business entity,
TRUSTED by the public.
Once a local association is privatized by the board/executive board,
its DIFFICULT to get the board to change and comply....VERY HARD!!



Board members of a local sports official association is not obligated to apply for exemption with the IRS if they want to be treated like a for-profit corporation or if their gross income is normally not more than $5000. How does the Gross Receipt Test works?

IRS Categorizes Organizations (Associations) as:
Incorporated Association Unincorporated Association
Non-Profit
501(c)3 Domestic Non-Profit Corporation
Non-Profit
Gross Receipts Taxable
For-Profit
Gross Receipts Taxable
For-Profit
Gross Receipts Taxable


"UNINCORPORATED"
Membership Dues $5000 or Less No IRS Determination Letter
Membership Dues more than $5000 IRS Determination Letter
Membership Dues
+
Registration fees
+
1099 Contract Receipts

EQUALS
Gross Income or Gross Receipts
Takes the Gross Receipt Test
more than $5000

Uses Form 1023
IRS Determination Letter
Form 1099-MISC
Form 990 or Form 990EZ

Having a EIN places the association in the IRS and state EIN databases.
Not having or using an EIN can open up a "can of worms" down the road.
IRS wants Form 990 from all State nonprofits, unincorporated or incorporated, regardless of their income.
(Consult with a tax attorney or licensed IRS Enrolled Agent for clarification)

"INCORPORATED"
501(c)(3) Domestic Non-Profit Corporation
Registered with Secretary of State **Yearly Renewal Required
Membership Dues
+
Registration Fees
+
1099 Contract Receipts
EQUALS
Gross Income or Gross Receipts
Greater than $5000
Takes the Gross Receipt Test
IRS Determination Letter
Form 1099-MISC
Form 990 or Form 990EZ

**Failure to renew Articles of Incorporation can lead to Secretary of State filing civil suit and/or administratively dissolution of the local association.
State Incorporated organizations (associations) must submit correct forms to IRS requesting a Determination Letter (tax exemption). States can only grant state tax exemption, as nonprofits is a state issue. Incorporating with the state does not make an association a legal business entity. All most report gross receipts via Form 990 or Form 990EZ or Form 1120.

A local association's board of directors, who have not obtain or governs without an IRS Determination Letter should be removed from office for failing to fulfill their fiduciary duties. Especially, if they took compensation from dues paid by the general membership.
The fiduciary responsibilities of a corporation's board members includes:
   * Avoiding conflicts of interest
   * Acting in the interest of the corporation rather than the member's personal interest
   * Providing oversight to assure that all corporation business is transacted legally
   * Making decisions to protect the assets of the corporation.



Which One Describes Your Association??

"This association is approved by the Georgia High School Association, the governing body for interscholastic athletics. We are state registered and have IRS Determination Letter"


"This association is approved by the Georgia High School Association, the governing body for interscholastic athletics. We are NOT state registered, have an IRS Determination Letter"


"We are a 501(c)(3) organization with IRS Determination Letter.
Approved by Georgia High School Association, governing body for interscholastic activities"







Contact: Association Reform


Page Last Reviewed or Updated:  22 April 2013


All Rights Reserved. 2010 - 2013. LSOA-GA is an unincorporated organization.
Self-funded, No Gross Receipts.