1 |
On Wed, 2011-03-23 at 15:07 -0500, Dale wrote: |
2 |
> |
3 |
> My questions would be this, if these things are not filed, are there |
4 |
> penalties for not filing them? |
5 |
|
6 |
Yes, the IRS can impose penalties in many different forms. Usually |
7 |
varies on a case by case basis. But if/when the IRS gets involved, you |
8 |
lose most all control. They tell you how things will be, and that is |
9 |
that. Its very bad, I have some clients going through this, and believe |
10 |
me, the Foundation does not want this. |
11 |
|
12 |
> Who gets those penalties, the individual or the organization itself? |
13 |
|
14 |
Thats a good question, I know for a fact the organization would. However |
15 |
there could be some personal responsibility as well for officers. Its a |
16 |
NPO so its a bit different than a for profit in that regard. Where |
17 |
principles in a for profit can be held liable for their actions. But |
18 |
that does tend to vary based on the type structure of the for profit |
19 |
entity, C corp, S corp, LLC, partnership, sole proprietor, etc. |
20 |
|
21 |
> How much would those be if there is one? |
22 |
|
23 |
Not sure, typically its based on income, amount you would have paid in |
24 |
taxes, etc. But a NPO does not file a tax return, for normal purposes. |
25 |
It does so just to show accounting to the govt, prove its not a for |
26 |
profit entity. There would not be any back taxes owed, or compounded |
27 |
penalties, interest, etc for that. |
28 |
|
29 |
But it very well could effect 501c3 status, or possible cause Gentoo to |
30 |
lose NPO status entirely. Also New Mexico could act on their own and |
31 |
revoke the charter. There are two entities to comply with, state and |
32 |
federal. |
33 |
|
34 |
> I remember Gentoo going through all this a few years back. Is this |
35 |
> happening again? Is it even worse this time? |
36 |
|
37 |
Its worse, because that was likely me back then. However this stuff was |
38 |
never accomplished in 08, and only more years have passed since. The |
39 |
mess has only gotten bigger, and more years to go back and report/file |
40 |
on. |
41 |
|
42 |
Its really not good all around, and needs to be top priority and the |
43 |
first task the new board works on till accomplished. Then procedures and |
44 |
processes need to be put into place, to ensure this NEVER happens again! |
45 |
|
46 |
For anyone who wants to do the leg work and research the matter. I will |
47 |
help out with the following links. |
48 |
|
49 |
http://www.irs.gov/charities/ |
50 |
http://www.tax.newmexico.gov/Businesses/How-Do-I/Pages/Start-Registera-Non-Profit.aspx |
51 |
|
52 |
|
53 |
-- |
54 |
William L. Thomson Jr. |
55 |
Obsidian-Studios, Inc. |
56 |
http://www.obsidian-studios.com |