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On Fri, Mar 25, 2011 at 2:30 PM, William L. Thomson Jr. |
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<wlt@××××××××××××××××.com> wrote: |
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> The IRS is slow, but you can prod them, and an experienced CPA or |
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> otherwise in this matter, should be able to deal with most things |
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> relatively quickly. Though most anything dealing with the government is |
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> slow. But the IRS really is not bad, if you do things correctly. |
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|
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So, I would definitely consult with professionals before doing |
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anything, but from the little reading I've been able to do so far it |
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seems like organizations can go ahead and start filing taxes like they |
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are exempt before they get official recognition as such. |
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|
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Now, I'm sure that makes you subject to penalties/etc if it turns out |
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you aren't exempt. However, I doubt it costs a dime more than what |
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you'd be subject to for not filing taxes at all once they catch up |
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with us (and unless we're raking in a lot of cash after expenses that |
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may not actually be much - it looks to me that unless criminal charges |
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are filed the liability is whatever we'd pay in taxes anyway, interest |
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at a rate that isn't that bad, and a penalty of up to 25% more - so |
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you basically pay what you should have paid all along plus enough of a |
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fine to make it not worth your while to delay). As others have said I |
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doubt criminal charges are likely unless somebody is pocketing funds |
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or using the organization to launder money or something - if you pay |
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your penalties the IRS is probably happy to cash the check and wait |
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for your next return. |
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|
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The terminology used in the IRS publications/etc is "recognition of |
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tax-exempt status." The logic is that tax-exempt organizations are |
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tax-exempt by virtue of law, and not because they are certified as |
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such (tax deductions for contributors are probably a different story). |
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So, basically you're just asking the IRS to acknowledge what is |
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already true. |
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|
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That said, I have no doubts that issues from the past will make |
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getting this recognition more difficult. Even so, the sooner we get |
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squeaky-clean with the paperwork the sooner we can move back in that |
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direction. I'm sure the IRS looks differently at an application by an |
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organization that has had the forms in on time for 5 years in a row |
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than one that is struggling to show compliance, regardless of the |
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history of either. |
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I've been slowly working my way through the IRS website as their |
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publications aren't actually all that bad and of course they are |
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official. If somebody is aware of a good place to find trustworthy |
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tips/etc for NFPs/etc let me know. |
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|
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Rich |