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General Category => Homebrew Clubs => Topic started by: Gary Glass on October 13, 2010, 02:28:14 PM

Title: 501(c)7 Clubs Must File with IRS - Deadline 10.15.10
Post by: Gary Glass on October 13, 2010, 02:28:14 PM
I've recently been contacted by a couple of clubs regarding requirements by the IRS for 501(c)7 Social Clubs to file an annual e-post card.  It seems that back in 2008, the IRS added the requirement for an annual filing, but did not do a very good job of making the applicable clubs aware of the new requirement.  While there is no fee for failure to file, failure to file for three consecutive years will result in a loss of tax exempt status.  So, if your club has is a 501(c)7 and hasn't filed a form 990 for 2007, 2008, or 2009, your club may need to do so ASAP.  The IRS deadline to file is 10/15/2010 for the year 2009 (note this is an extension from the normal filing date, which is the 15th of the 5th month after the year you are filing for).

See http://www.irs.gov/newsroom/article/0,,id=225959,00.html?portlet=7 for more information on the October 15 deadline. 

Most 501(c)7 clubs, will simply need to submit an 8 question e-postcard:http://www.irs.gov/charities/article/0,,id=169250,00.html. The questions are:

   1. Employer identification number (EIN), also known as a Taxpayer Identification Number (TIN)).
   2. Tax year
   3. Legal name and mailing address
   4. Any other names the organization uses
   5. Name and address of a principal officer
   6. Web site address if the organization has one
   7. Confirmation that the organization’s annual gross receipts are normally $25,000 or less
   8. If applicable, a statement that the organization has terminated or is terminating (going out of business)

Gary
Title: Re: 501(c)7 Clubs Must File with IRS - Deadline 10.15.10
Post by: dbeechum on October 13, 2010, 08:57:15 PM
Not that it will matter to most clubs, but I believe the income level limit has been raised to 50k per year.
Title: Re: 501(c)7 Clubs Must File with IRS - Deadline 10.15.10
Post by: micsager on December 01, 2010, 06:46:11 PM
What a pain.  Glad we're just a group of dudes.
Title: Re: 501(c)7 Clubs Must File with IRS - Deadline 10.15.10
Post by: dbeechum on December 02, 2010, 11:28:50 PM
Yeah, but there are problems with remaining "just a bunch of dudes" when you've moved beyond that stage. Truthfully, things like this are a slight pain in the ass to get started with, but there are a bunch of benefits like the IRS won't suddenly decide to go after your treasurer or treasury because it's extra undeclared income flowing around the system somewhere!
Title: Re: 501(c)7 Clubs Must File with IRS - Deadline 10.15.10
Post by: micsager on December 03, 2010, 05:29:45 PM
I suppose you're right.  We're up here in the boondocks, and really only have 5-6 regular members.  We charge no dues, and have no expenses.......   100 miles northwest of Seattle. 
Title: Re: 501(c)7 Clubs Must File with IRS - Deadline 10.15.10
Post by: dbeechum on December 03, 2010, 09:46:26 PM
Yeah and that's exactly where all this 501 (c)7 stuff would be overkill.

Meanwhile, we're down in Los Angeles and have nearly 300 members, so.. slightly different scope. :)