Unit Tax ID number

[nolesrule]

I love it. A STATE law regarding how you can or can't use your FEDERAL Tax ID. (shakes head)

[Beavah]

Yah, hmmm....

 

Not sure what is up with Tennessee? Seems likely that someone in da council scout shop really doesn't understand da rules, or someone in da state department of revenue doesn't understand the nature of the beast. Either way, this is somethin' that your SE should be instructed to fix, eh? That's why we have professionals, so they can sort out this stuff so da volunteers don't have to.

 

If your SE ain't listenin', have your COR call da Council President.

 

Back on topic,

 

Option #1 is the best choice. Doesn't matter if the CO is a business, eh? If yeh choose a non-interest-bearing account at the bank, everything is fine. If yeh choose an interest-bearing account, then da CO is goin' to have to pay taxes on the interest earned.

 

Option #2 is possible, since yeh can apply for a federal EIN in the unit's name as a voluntary association. This may be da way to go for a unit that is chartered by a "Friends of" group which is not separately incorporated. It does "put you on the radar" of the IRS, particularly if yeh use an interest-bearing account. Not a big deal if yeh don't take in more than $5K per year in gross receipts.

 

Option #3 is done, but ain't recommended, just because it's easy for the person to abscond with the funds, eh? If it's an interest-bearing account, the person will have to declare the interest on his/her 1040 and pay tax on it.

 

All this applies to a bank account only, eh? Doesn't have anything at all to do with being able to take donations for a tax exemption (federal 501©(3) status), or for being exempt from sales tax (which is a function of state law completely unrelated).

 

If yeh want to accept donations that the donor can take a deduction for, yeh need to be operatin' under your CO's 501©(3) determination, or yeh need to do what Eamonn did and get an IRS determination of charitable status for an incorporated or voluntary association group. Unless yeh meet the gross receipts test (take in on average less than $5K per year), in which case you can act as a 501©(3) without filing.

 

So again, that's Option 1 preferred, Option 2 possible, Option 3 is a no-go.

 

If yeh want exemptions from sales tax, that's a document you have to apply for from your state revenue department. Depending on the state, some entities that are exempt from federal income tax under section 501© are not exempt from sales tax, and some entities may be exempt from sales tax that aren't exempt from federal tax. Once again, operatin' under your CO's certificate is the best way to go, but it may also be possible to apply as a voluntary association in your state.

 

So again, that's Option 1 preferred, Option 2 possible, Option 3 a no-go.

 

Three different things (bank account, taking donations, sales tax), but the same options for each.

 

Beavah

 

The above text is for general informational purposes only, and shall not be construed to be a legal opinion or legal advice. For specific solutions to a particular need, consult with an attorney and/or accountant in your area.(This message has been edited by Beavah)

[ScoutMomSD]

private message I received - can you all have the parts to just post this stuff?

 

"ScoutMomSD, How long have you been in scouting? Where would you get the idea that because a leader does not have a son in a pack/troop that they are evil? Chances are you've stood next to more evil people in public, at the store, on the street, or at the park. Man I am sure glad that closed minded people like you are still not in a position to take away from me the one passion that I have. I love scouting, I was a cub scout, boy scout, and now I am a scoutmaster. Maybe before you throw a whole group of people under the bus you should have some kind of figures or facts to back up such a ridiculas remark such as yours. Bill. This Member to Member private message was sent by eagle77"

 

look it's my opinion - many of you think that I am a godless jerk because I am liberal. And that I am against prop 8. And that I question some of the tenents of scouting. Sorry. I am being forthright and honest. Just as many on this board are. But I am "bad" because they are different opinions. Cool dudes.

 

Go back to tax ID's - sorry I had an opinion.

[eagle77]

ScoutsMomSD,

Dr Evil here.

Oh I have the parts. Don't worry about that. I was just overly offended by your post. I also didn't feel that it belonged on this thread. But since you would like it here, okay. By your slim way of thinking I guess all coaches must have a son or daughter on their team in order to be good coaches. Have you been through an expierence that would have you make such a remark? Have you ever heard of the Eagle Charge, in which an Eagle Scout dedicates himself to giving back to scouting what scouting gave to him? I could care less where you stand on political votes, that is up to you and your maker. Just thought it might have been discussed better on the side, or maybe I didn't understand your remark. Just glad you are on the other (way other)side of the country.

Bill

 

[Eamonn]

Wearing My Moderator Hat!!

 

I'm really OK with Threads taking on a life of their own.

I do really understand that one thing said can lead us down a very different path.

But..... (Hey !! You knew it was coming!)

I do ask that if we are going to discuss who might make suitable or not so suitable adult leaders that someone spins off or starts a new topic.

Thanks.

Eamonn.

[Gold Winger]

"I love it. A STATE law regarding how you can or can't use your FEDERAL Tax ID. (shakes head)"

 

Since many states use the Fed ID number as their, it does become a state issue when dealing with state taxes. It has been discussed on this board that there are other states that consider Scout units to be seperate entities from the CO and they require seperate tax numbers from those units.

 

"Go back to tax ID's - sorry I had an opinion."

 

Oh, you're entitled to your opinion just as someone is entitled to their opinion that O'Bomba will be a great president because he's black. However, be aware that when you tell a bunch of people that they are creepy, there will be a negative response.

 

I'm sticking with the idea that is rather creepy for moms to want to go camping with a bunch of boys.

[clc5105]

When I opened a checking account for our crew I was advised by the bank to get a Tax ID number. The account was opened under my number with the understanding I would get an ID # and change it. In fact, about thirty minutes after I left the guy at the bank called me back and said that he had called a supervisor and was advised that the IRS can, and has, tied people's personal accounts with a troop/crew account, which created a mess. A day or so later I called the IRS and got the number. It took about two weeks for the IRS to get the letter to me confirming the number, which I had to take a copy of to the bank. Getting the number was easy, in fact the lady I spoke with at the IRS was interested in a Venture Crew as her son had just made Life Scout.

[Vector_Joe]

Our council just had it's 'training academy' and I went to the pack committee chair training, so here is what I think I learned about this topic.

 

In addition to what beavah said, if your CO cannot or will not let you use their EIN, the application and directions for applying for your own is http://www.irs.gov/pub/irs-pdf/fss4.pdf

 

Just make sure that you do not put anyone's personal ssn on the form if at all possible.