[KCDXC] Thanks Cliff

[Lee Ward]

If you are an officer of a radio club, here's an article posted on the ARRL
News Web site today that might be of importance to your club. 

Because of the time-sensitive nature of the May 15, 2010 deadline, I wanted
to promptly get it in the hands of local club officers throughout the
Midwest Division.  The ARRL News story has links to IRS information and
forms, at: 

http://www.arrl.org/news/many-radio-clubs-could-lose-tax-exempt-status-in-20
10.

 

73, Cliff K0CA

 

Many Radio Clubs Could Lose Tax-Exempt Status in 2010 ARRL News 05/03/2010

 

Changes made three years ago to the federal tax laws could cause many radio
clubs to lose their tax-exempt status this year. 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 as
charitable organizations under Section 501(c)(3), as civic leagues under
Section 501(c)(4) or as recreational clubs using Section 501(c)(7)," said
ARRL Southwestern Division Director Marty Woll, N6VI. "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 15th 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 the 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," Woll explained.

"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 advisor."

 

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ARRL Midwest Division

Director: Cliff H Ahrens, K0CA

k0ca at arrl.org

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