Re: [AGA-mcm] 2005 Expenditures and revenues -- planning ahead

["S. Hieber" <shieber@yahoo.com>]

--- Karen Randall <krandall@rdrcpa.biz> wrote:

> > Taxes [pending any decison from the IRS re tax-exempt
> > status, are we going to file an pay in 2005 for the
> 2004
> > tax year?]
> 
> My gut feeling is that to pay taxes for 2004 is to admit
> that we might OWE
> taxes.

>  If our stand is, as I think it should be, that we
> are a non-profit
> institution, we don't owe taxes.  

I believe the federal tax code requires payment unless
tax-exempt status has been recognized by the IRS. Payments
may be made in protest subject to a future determination
but the burden is not onthe IRS, if I read things
correctly. But I'm not a tax guy -- I don't claim to know
how it works or what is our best tack. I'd again encourage
hiring a tax expert (even include it in the budget) but
that's a trumpet that hasn't made much sound. Whatever we
do (or don't do), I believe it's a decision the BoD should
make; not me. If no other aquatic group pays, then we can
at least fall on the mercy of the auditor (if necessary)
and say we did just what everyone else like us does (or
didn't do what everyone like us doesn't do). I'm not trying
to make inroads in the adminsitration of hobby groups; I
just don't want to put AGA viability at risk. 

sh
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