Templars and Taxes

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Templars andTaxes
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Disclaimer
Pease be advised that, based on current IRS rules
and standards, the advice contained herein is not
intended to be used, nor can it be used, for the
avoidance of any tax penalty that the IRS could
assess related to these matters. Further, we
will not be considering the details of various
state and local taxation nor of employment,
property or sales taxes. Many subjects will be
simplified for the sake of time
limitations Special circumstances are often
factors. Non-profit taxation is a complex and
specialized subject.
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Seek the advice of a qualified tax professional
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Tax Exempt Status
Many different categories or types Each type may
have different rules 501 (C)(10) Domestic
Fraternal Association operating on the Lodge
System Grand Encampment Grand
Commandery Constituent Commandery 501 (C)(3)
Charitable, religious, scientific,
educational Knights Templar Eye
Foundation Educational Foundation
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Tax Exempt Status
How obtained
Form 1024 19 page form describing
activities Automatic Theoretically yes but
highly unclear who can qualify Group Exemption
Kind of like being vouched for by your governing
body
Grand Encampment has filed for Group Exemptions
covering all Grand Commanderies and
constituent commanderies for whom we have tax ID
numbers
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What the IRS wants
1) Oversight - Criticism of abuse in NPOs 2)
Public inspection of annual form 990 Some
constituencies want more information 3) THE
source of public information The IRS wants to
look good
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New Form 990Supersized
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Who has to do this insane thing
All exempt organizations have to file something
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Getting off easythe 990-N
Electronic postcard Allowed if less than 25,000
gross receipts in 2008 or 2009 Increased limit
is 50,000 for 2010
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990 - EZ
990
Everyone else
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990 N Problems
Does not work with all internet browsers Does
work with Internet Explorer If you have trouble
try again with different program
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990 N Problems
Will not work if they dont show you on exempt
list IRS is having trouble processing our group
exemption because of high number of new group
exemption filings
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990 N
Can we blow it off?
No you cant If you dont file 990-N for two
years You can lose tax exempt status
2007 was year 1
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Donations
Donations to 501 (C)(3) organizations are tax
deductable
Donations to Fraternal Organizations for
Operations are NOT
Donations to Fraternal Organizations for
Charitable purposes ARE deductable
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Donations
Must issue receipt if more than 250
Must inform donor in writing if any part of
contribution is Not Deductible
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Donations
Quid Pro Quo
If deductable contribution is more than 75 And
there is quid pro quo MUST notify donor in writing
May disregard small items
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Donations
Non-cash Deductable Contributions
Receipt required if worth more than 250 Need not
state value but must describe the donated item
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Donations
Non-cash Deductable Contributions
If Value is over 5,000 Sign form 8283
If 8283 prepared - must file form 8282 if
property is disposed of within 3 years
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PAYING TAXES
Unrelated Business Income Tax
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STATE TAXEXEMPTION
Do you need State or Local exemption?
Maybe
Usually easy if you have federal exempt status
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STATE TAXRETURN FILING
Do you need to File State or Local returns?
Maybe
Must check with local tax authorities
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OTHER STATE AND LOCAL TAXES
What do you do about sales and property taxes
Must check with local tax authorities or an expert
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THE END
Thank You for Coming And Good Luck
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