H t St t f T

2009 Finance & Business Operations
Symposium (FBOS)
How to
H
t Stay
St outt off T
Trouble
bl
with Local and State Tax
Authorities!
Anna Hofmeister,
Hofmeister CPA
Brent Woods, Esq., CAE
Al Thomson, EA, CFP
Thursday, May 14, 2009
Connecting Great Ideas and Great People
Agenda


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Common miss-conceptions
Federal filing
g requirements
q
State filing requirements
Local filing requirements
Common Miss
Miss-Conception
Conception #1
We have a letter of exemption from
the IRS, therefore we are not
required to file anything.
anything
Common Miss
Miss-Conception
Conception #2
We are a 501(c)(3),
501(c)(3) so we are exempt
from all taxes.
Federal Filing Requirements
 Federal Form 990
 Federal Form 990-T, if applicable
Federal Group Exemptions
IRS Pub.
P b 4573
 Benefit: Each chapter does not have to file for
its own exemption (save $)
 “Parent” org must file annual update. Must
list:
 Chapters who have changed names or addresses
 Chapters no longer included in GE
 Chapters to be added to GE
 GE Chapters must still comply with 990
requirements
 Consider “opt out” policy
State Filing Requirements
 Sales and Use Tax
 Unclaimed Property
 Charitable Registration
Sales & Use Tax
Unless specifically exempt from sales and
use tax,, a nonprofit
p f organization
g
must p
payy
sales tax on products/services it
buys/receives, collect and remit sales
taxes on certain products it sells, and/or
use tax for purchases when the vendor did
not charge sales tax.
Sales & Use Tax

What is taxable?
 In general
general, tangible goods bought (exemption possible) and sold
 Warning! Some jurisdictions tax services!

Where are you liable?
 “Nexus” concept
 Selling
S lli via
i iinternet/mail
t
t/ il nott sufficient
ffi i t nexus (Q
(Quill
ill C
Corp v. N
North
th
Dakota)
 Indirect physical presence may create nexus (Borders v. State Board of
Equalization [CA])

Due date
 VA Monthly ST-9 (by 20th/can iFile online)
 MD Monthly by 20th (State sends form or can bFile online)
 DC Monthly by 20th (Form FR 800M, online via eTSC) (Info - FR 379)

Discussion
Unclaimed Property
Tangible or intangible property that has
remained unclaimed by its owner for an
extended period of time.
Unclaimed Property
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
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

Savings and checking accounts
Wages or commissions
Customer deposits
Credit balances
Refunds
And more
Unclaimed Property

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
Exemptions – Account credits
credits, rebates
rebates, gift certificates
certificates, checks in normal
course of business. Check jurisdiction!
Due diligence – letter sent to owner’s last known address
Dormancy period

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Electronic or paper
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VA – Either (CD or upload – NAUPA 2 format)
MD – Online
O li ((upload
l d NAUPA 2 format
f
or fill
fill-in
i online)
li )
Due date
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


VA – Varies by type of property
MD – 3 years
DC – Varies by type of property
VA – Nov. 1
MD – Oct. 31
DC – Oct.
Oct 31
Discussion
Charitable Registration
Requires that anyone that solicits funds in
a particular state must initially register
with that state and file an annual report
thereafter.
thereafter
Charitable Registration
 What to file
 Unified Registration Statement
 Federal Form 990
 State form
 Due date
 Electronic or paper
 Fee
Local Filing Requirements
 Business License
 Personal Property
Business License
A business must file for a business
license to operate in a specific
j i di ti
jurisdiction.
Most
M t nonprofits
fit pay a fee
f
equal to a percentage of gross unrelated
business receipts in the prior year.
year
Business License




What is filed
Electronic or paper
Due date
Discussion
Personal Property
All businesses must pay business personal
property taxes on tangible property they
own, such
h as ffurniture,
it
computer
t
hardware, equipment, and vehicles.
Personal Property
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Exemptions
What is filed
Electronic or paper
What is covered
Due date
Discussion
Questions and Answers
Contact Information:
Anna Hofmeister, CPA
Phone: 202-419-5103
E-mail: [email protected]
Brent Woods , Esq., CAE
Phone: 703-736-8900
E-mail: [email protected]
Al Thomson, EA, CFP
Phone: 703-524-1595
E-mail: [email protected]
www.asaecenter.org
Connecting Great Ideas and Great People