Scouts-L Mail Archive for April of 1999: Re: 3 tax questions
Re: 3 tax questions
Tue, 27 Apr 1999 13:19:33 -0400
Kevin Woods wrote:
> 1. Our Treasurer has been told by HR Block, that if our checking account
> has over $$$ in DEPOSITS (I'm sorry, I cannot remember the figure although
> it was rather large) than even as a non-profit, with a correct tax exempt
> id, we would be required to file form ######????(you don't expect me to
> remember this number do you?) It is supposed to be a federal, not state form.
What HRBlock is probably inferring is your deposits reflect your income. I
believe the level at which one is required to file a non-profit return (form
990) is $30,000 annual income.
HOWEVER, AND THIS IS A BIG HOWEVER, a Scout troop does not have its own legal
identity, it is a part of its chartered organization. Therefore, there is no
reason for you to go to HRBlock for anything as you cannot file because you do
not exist on your own. As proof of that, the tax ID number on your checking
account is your chartered organization's tax ID number. If it isn't, you have
much bigger problems.
> 2. For years I have "heard" that a units accounts should equal "0" at the
> end of its fiscal year. That your accounting should show a zero balance.
> I have never seen this happen. Nor have I seen it (As I so Like to
> express):) in writing
Absolutely untrue from BSA perspective. Only your chartered organization or
your Troop committee (with chartered org approval) may impose such a
requirement on you. Overall, your accounting requirements are no greater or
no less than what your chartered org's are or what they specify for you. The
only thing BSA says is you should have some kind of budget mechanism so you
can operate responsibly.
> 3. Can anyone tell me what a units "Fiscal year" is? Is it charter year?
> Is it calendar year? Is it the same as our councils fiscal year?
Again, whatever your chartered org and/or Troop committee come up with, based
on what works for your Troop. There are no BSA requirements nor are there any
IRS or other Federal requirements.
Troop Committee Secretary, Northborough Troop 101
Brotherhood, Chippanyonk Lodge #59, OA
Knox Trail Council #244, BSA