Gentoo Archives: gentoo-nfp

From: "William L. Thomson Jr." <wlt@××××××××××××××××.com>
To: gentoo-nfp@l.g.o
Subject: Re: [gentoo-nfp] Tax return and accounting discrepancies
Date: Wed, 23 Mar 2011 20:18:51
Message-Id: 1300911512.12053.92.camel@wlt
On Wed, 2011-03-23 at 15:07 -0500, Dale wrote:
> > My questions would be this, if these things are not filed, are there > penalties for not filing them?
Yes, the IRS can impose penalties in many different forms. Usually varies on a case by case basis. But if/when the IRS gets involved, you lose most all control. They tell you how things will be, and that is that. Its very bad, I have some clients going through this, and believe me, the Foundation does not want this.
> Who gets those penalties, the individual or the organization itself?
Thats a good question, I know for a fact the organization would. However there could be some personal responsibility as well for officers. Its a NPO so its a bit different than a for profit in that regard. Where principles in a for profit can be held liable for their actions. But that does tend to vary based on the type structure of the for profit entity, C corp, S corp, LLC, partnership, sole proprietor, etc.
> How much would those be if there is one?
Not sure, typically its based on income, amount you would have paid in taxes, etc. But a NPO does not file a tax return, for normal purposes. It does so just to show accounting to the govt, prove its not a for profit entity. There would not be any back taxes owed, or compounded penalties, interest, etc for that. But it very well could effect 501c3 status, or possible cause Gentoo to lose NPO status entirely. Also New Mexico could act on their own and revoke the charter. There are two entities to comply with, state and federal.
> I remember Gentoo going through all this a few years back. Is this > happening again? Is it even worse this time?
Its worse, because that was likely me back then. However this stuff was never accomplished in 08, and only more years have passed since. The mess has only gotten bigger, and more years to go back and report/file on. Its really not good all around, and needs to be top priority and the first task the new board works on till accomplished. Then procedures and processes need to be put into place, to ensure this NEVER happens again! For anyone who wants to do the leg work and research the matter. I will help out with the following links. -- William L. Thomson Jr. Obsidian-Studios, Inc.


Subject Author
Re: [gentoo-nfp] Tax return and accounting discrepancies "William L. Thomson Jr." <wlt@××××××××××××××××.com>