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ATA IRS issues for Dummies?

Discussion in 'Shooting Related Threads' started by mrskeet410, Jul 28, 2010.

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  1. mrskeet410

    mrskeet410 TS Member

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    In 100 words or less. Just the facts M'am.
     
  2. goatskin

    goatskin TS Member

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    Wrist-slap, tops.

    Possibly some small tax liability (prolly shifted to individuals who will file amended returns), with a little interest and small penalty.

    A graduated shopping list of compliance issues/features which have to be addressed.

    What Glatz addressed was POTENTIAL exposures and liabilities <i>IF</I> the required changes were not addressed. He was PREscriptive.

    What REALLY irritates the IRS is when they come back and see the same issues non-addressed.


    Bob
     
  3. Dickgshot

    Dickgshot Well-Known Member

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    One sentence explanation of IRS issues: If you say you're a charity, you have to use the money you collect for your stated charitable purpose, not taking it for yourself or giving it to your friends.
    CPA Former IRS Agent
     
  4. jr7100

    jr7100 TS Member

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    Really? No charitable organization pays employees or sometimes cover some of their expenses? Jim
     
  5. Big Heap

    Big Heap TS Member

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    If a donor wants to give money to the organization, doesn't he/she get to write off the donation on his IRS report?

    Couldn't the $100,000 donation to the handicap winner at the Grand qualify for this provision and get the donor a tax credit?
     
  6. Dickgshot

    Dickgshot Well-Known Member

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    In the interests of brevity, I didn't mention the obvious. Reasonable compensation paid for services actually performed and re-imbursement for legitimate expenses can be paid to anybody. That wasn't the issue here.
    The question about the $ 100,000, I can see a problem on both ends. If the money is earmarked for the prize, that could preclude the charitable deduction. If the money is for the general fund, but used for the prize, that could be considered
    an improper payment by the ATA. It will be interesting to see how this plays out.
    In any event the IRS gets their tax from the guy who wins the money.
     
  7. Gary Waalkes

    Gary Waalkes Well-Known Member

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    There are two IRS issues. #1 - If in years past, the ATA "gave" a gun away without issuing a 1099 to the recipient, they were wrong (and if the recipient did not declare it - they were wrong too).

    #2 - If the IRS decides that your charitible org is having too much fun - they take the 3C designation away and then the ATA would have to revert to it's old C7 status (social org) and have to file and pay taxes on all non-business related income. We might be headed that direction anyway. Anyone know how much gets spent toward the charitable goals versus how much money is taken in?
     
  8. shannon391

    shannon391 Active Member

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    It's not like the ATA gets federal or public funds, give me a break...
     
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