[HIham] Fwd: Important Information for Tax Exempt Amateur Radio Clubs

[Ron Hashiro]

 From ARRL, and Marty Woll, N6VI, Bob Vallio, W6RRG.

-------- Original Message --------
Subject: 	Important Information for Tax Exempt Clubs
Date: 	Tue, 4 May 2010 06:19:09 -0400 (EDT)
From: 	ARRL Members Only Web site <memberlist at www.arrl.org>
To: 	rhashiro at hawaiiantel.net



Urgent Message to All Radio Clubs (Please share this information with
all clubs in your area)

Changes made three years ago to the federal tax laws could cause many
radio clubs to lose their tax-exempt status this year.  To protect
themselves, clubs that are tax-exempt under Section 501(c) of the
Internal Revenue Code must file the required IRS annual returns or
reports before the deadline, which is May 15 for those with calendar
years.

Many clubs have, at some time in the past, applied for tax-exempt
status under Section 501(c)(3) [charitable organizations], Section
501(c)(4) [civic leagues] or Section 501(c)(7) [recreational clubs]. 
Years ago, any club with gross receipts averaging less than $25,000 per
year was not required to file annual returns with the IRS.  However,
after 2006, such clubs had to file a Form 990-N, a simple “electronic
postcard” with minimal information, by the fifteenth day of the fifth
month after the close of each fiscal year.  Some clubs may not have
been aware of this new requirement or didn’t bother to comply.  Even
those that filed in a prior year may have neglected to keep up with the
required filings as officers changed from year to year.

Section 6033(j) of the Code provides that failure to file Form 990,
990-EZ or 990-N for three consecutive years results in revocation of
tax-exempt status as of the filing due date for he third return.  That
filing date for calendar year 2009 is less than two weeks away.  If you
are a club officer and are uncertain who is responsible for IRS filings
or whether such filings are current, you should determine your fling
status as soon as possible and take immediate steps to file the current
and any missed prior-year IRS forms.  Going forward, your club’s board
should assign the responsibility for compliance filings with a
designated officer and document that responsibility in the written
“job description” for the position so that subsequent holders of
the office are made aware of the requirements.  If you have questions
about your club’s status, you may wish to consult a CPA or other tax
adviser.

Thanks to Marty Woll, N6VI, Vice Director of the Southwestern Division,
for sharing this information with me.

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ARRL Pacific Division
Director: Robert B Vallio, W6RGG
w6rgg at arrl.org
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