[NJARC] Fwd: IRS regulations for 501c Clubs!

Tue May 4 07:13:32 EDT 2010

We've had some scary issues at the local radio club up here in Bergen Co. a few years ago. And they don't play nice and not impressed with the friendly, non commerical nature of radio clubs. They go after them as if they were Bernie Madoff spinoffs especially looking at how the money is spent.  In our case they had a problem with how the money was NOT spent - you cannot keep having fund raisers without doing something with the money in an authorized use.  Having a yearly club dinner was OK (and recommmended as one of the remedies).  Also, have your book-keeping organized and clear and also the procedures for electing both officers and trustees.  Trustees beware YOU are PERSONALLY LIABLE for violations..

-----Original Message-----
From: oldradio at comcast.net
To: NJARC <njarc at mailman.qth.net>
Sent: Tue, May 4, 2010 6:50 am
Subject: [NJARC] Fwd: IRS regulations for 501c Clubs!

Just remember 
eply = Poster
eply All = Everyone
_________________________________________________________
NJARC officers - take note.  This will apply to us too.  Infoage should check 
heir status as well.
3, John Dilks

---- Forwarded Message -----
rom: "ARRL Members Only Web site" <memberlist at www.arrl.org>
o: oldradio at comcast.net
ent: Tuesday, May 4, 2010 6:17:06 AM GMT -05:00 US/Canada Eastern
ubject: Special News for Atlantic Division Clubs!
Atlantic Division News
ay 3, 2010
ulletin 2010-05

s Your Club Facing the IRS Timebomb? -Urgent Message to All Radio
lubs
Changes made three years ago to the federal tax laws could cause many
adio clubs to lose their tax-exempt status this year.  To protect
hemselves, clubs that are tax-exempt under Section 501(c) of the
nternal Revenue Code must file the required IRS annual returns or
eports before the deadline, which is May 15 for those with calendar
ears.
Many clubs have, at some time in the past, applied for tax-exempt
tatus under Section 501(c)(3) [charitable organizations], Section
01(c)(4) [civic leagues] or Section 501(c)(7) [recreational clubs]. 
ears ago, any club with gross receipts averaging less than $25,000 per
ear was not required to file annual returns with the IRS.  However,
fter 2006, such clubs had to file a Form 990-N, a simple “electronic
ostcard” with minimal information, by the fifteenth day of the fifth
onth after the close of each fiscal year.  Some clubs may not have
een aware of this new requirement or didn’t bother to comply.  Even
hose that filed in a prior year may have neglected to keep up with the
equired filings as officers changed from year to year.
Section 6033(j) of the Code provides that failure to file Form 990,
90-EZ or 990-N for three consecutive years results in revocation of
ax-exempt status as of the filing due date for he third return.  That
iling date for calendar year 2009 is less than two weeks away.  If you
re a club officer and are uncertain who is responsible for IRS filings
r whether such filings are current, you should determine your fling
tatus as soon as possible and take immediate steps to file the current
nd any missed prior-year IRS forms.  Going forward, your club’s board
hould assign the responsibility for compliance filings with a
esignated officer and document that responsibility in the written
job description” for the position so that subsequent holders of
he office are made aware of the requirements.  If you have questions
bout your club’s status, you may wish to consult a CPA or other tax
dvisor.
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