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