ncCPAp on the GO!

Nonprofit problem

  • 1.  Nonprofit problem

    Platinum Most Valuable Member
    Posted 6 days ago
    Hi All,
    We have a client who formed a Nonprofit Corporation in NY in 1959.  No other forms have ever been filed.  They have no EIN.  Nonprofit corporations are never dissolved by NY for inactivity so they are still listed as an active Nonprofit Corporation.

    We cannot change the name and start over as they have purchased real estate in the corporate name.
    If I file for an EIN I have to give a start date.  The website does not allow a date older than 25 years.

    Any suggestions?

    Thank you,
    Sandy

    ------------------------------
    Sandra Johnson CPA
    SANDRA G. JOHNSON, CPA
    Bellmore NY
    ------------------------------


  • 2.  RE: Nonprofit problem

    Bronze Most Valuable Member
    Posted 5 days ago
    Hi Sandra,
    I could be mistaken; however I believe that your client is not a non-profit organization.  Only the IRS can designate a 501(c)(X) by completing application Form 1023.

    Even if NY state recognizes your client as a non-profit (which I doubt), the IRS does not.  I would recommend that your client obtain an EIN for non-profits, select a starting date a month or two before the real estate sale, and then fill out Form 1023.

    Also, if your client does not have a robust / independent board of directors, then be careful to make sure that they're not using the non-profit organization for tax evasion.

    Might not hurt for your client to reach out to an attorney that specializes in specifically working with non-profits.  If you don't have any local attorneys, I can refer you to an attorney in Massachusetts and a national attorney based in Washington DC.
    Best,
    Irene


    ------------------------------
    Irene Wachsler, CPA
    Wachsler CPA LLC

    Contact:
    Irene Wachsler, Trusted Biz Advisor for small business & gig economy
    Mass & NY Film Tax Credits
    Wachsler CPA , LLC
    Cell: 781.883.3174
    Email: irene@iw-cpa.com
    ------------------------------



  • 3.  RE: Nonprofit problem

    Platinum Most Valuable Member
    Posted 5 days ago
    Thank you for your input, Irene!  If you can email me the name of the attorney in Massachusetts that would be great.

    ------------------------------
    Sandra Johnson CPA
    SANDRA G. JOHNSON, CPA
    Bellmore NY
    ------------------------------



  • 4.  RE: Nonprofit problem

    Bronze Most Valuable Member
    Posted 4 days ago

    Please keep in mind also, that when the organization receives its tax exemption in NYS, it can then apply to NYS Tax Department for a sales tax exemption which is NOT an EI# - it's a separate identification number (I believe 6 digits) to use when purchasing anything on behalf of the organization. It's only applicable for 501(c)(3) entities.

    --  Evan S. Golar, CPA, EA, NTPI Fellow, ARA 15 Murray Drive Airmont, New York 10952-3816 work 845-357-8770 fax   845-357-5731 www.golarcpa.com  Enrolled Agents-America's Tax Experts     E.A.???s do CPR for taxpayers, Consultation, Preparation and Representation  If you are satisfied with our services, please refer us to your friends, family and colleagues  This e-mail is intended only for the confidential use of the recipient named above.  If you are not the intended recipient, you are hereby notified that any review, dissemination, distribution or copying of this message is strictly prohibited.  If you have received this communication in error, please notify us immediately by e-mail or telephone and delete the original message.





  • 5.  RE: Nonprofit problem

    Bronze Most Valuable Member
    Posted 4 days ago

    Hi Sandra,

    Hurwit & Associates specializes strictly on nonprofit law.  Daniel Hershey is the primary point of contact.  If you speak to Dan, please tell him that I said hi – we've met multiple times at the Cambridge Chamber of Commerce events.

     

    Phone:  617-630-6900

    Email:  dhershey@hurwitassociates.com

    Website:  www.hurwitassociates.com

     

    Best,

    Irene

     

    Contact:

         Irene Wachsler, Trusted Biz Advisor for small business & gig economy

         Wachsler CPA , LLC

         Cell:     781.883.3174

         Email:  irene@iw-cpa.com

     

    What is keeping you up at night?  We got you covered so that you can focus on running your business.  Contact us today!

         Trusted Business Advisor – cloud accounting solutions

         Mass. Film Tax Credits unlimited, transferable, refundable 25%; minimum $50K spend

         New York Film Tax Credits audit / AUP MINIMIZES TIME ESD'S APPLICATION PROCESSING

         NonProfit organizations Financial Statements (audits, reviews, compilations)

    Check out our website at www.iw-cpa.com.  Tweeting @IreneFilmTaxCrd

     

    Apologize in advance for typos.  Using speech recognition.

     "Life is not meaningful to us unless serving an end beyond himself, unless it is of value to someone else." - Abraham J. Heschel

    P Please consider the environment before printing this e-mail.

     

    This email is confidential.  If you have received it in error, please notify irene@iw-cpa.com immediately and delete the original email.  Thank you.

     






  • 6.  RE: Nonprofit problem

    Platinum Most Valuable Member
    Posted 4 days ago
    Sandy:

    Irene has a very good point here. All you have is a corporation formed under the NYS NFP law.

    I would first check with the NYS Department of State to see if the corporation was dissolved by proclamation. If so, you try voluntary disclosure.

    You can speak to one of our many tax attorney friends regarding the federal, as all you have here is a C Corp.

    Once you have it cleaned up, you can file a 1023.

    ------------------------------
    Robert Brown
    ROBERT N. BROWN, CPA
    Jericho NY
    ------------------------------



  • 7.  RE: Nonprofit problem

    Silver Most Valuable Member
    Posted 3 days ago

    Bob Brown is correct – you can check online at  IRS.gov to see if the entity is listed as a 501c3 – if not it is a C corp and you will need to see if it has been dissolved by proclamation. Much cleanup and back filings – use VD for NYS and then file the back returns for IRS then you can file1023 or the EZ if you qualify. Perhaps close this entity and start anew.

     

    Very truly yours,

     

    ROBERT S. BARNETT

     

    image001.png@01CFB32B.C750F150

     

    Long Island Office:

    100 Jericho Quadrangle, Suite 233

    Jericho, New York 11753

    516-931-8100

    Fax: 516-931-8101

     

    New York City Office:

    1385 Broadway, 12th Floor

    New York, New York 10018

    212-661-1144

    Fax: 212-643-1330

     

    www.cbmslaw.com

    _______________________
    Confidentiality Notice: The information contained in this e-mail and any attachments may be legally privileged and confidential. If you are not an intended recipient, you are hereby notified that any dissemination, distribution or copying of this e-mail is strictly prohibited. If you have received this e-mail in error, please notify the sender and permanently delete the e-mail and any attachments immediately. You should not retain, copy or use this e-mail or any attachment for any purpose, nor disclose all or any part of the contents to any other person. Thank you.

     



    Disclaimer

    The information contained in this communication from the sender is confidential. It is intended solely for use by the recipient and others authorized to receive it. If you are not the recipient, you are hereby notified that any disclosure, copying, distribution or taking action in relation of the contents of this information is strictly prohibited and may be unlawful.

    This email has been scanned for viruses and malware, and may have been automatically archived by Mimecast Ltd, an innovator in Software as a Service (SaaS) for business. Providing a safer and more useful place for your human generated data. Specializing in; Security, archiving and compliance. To find out more Click Here.