Becoming Exempt From Paying Federal Taxes and Maintaining Exemption South Carolina State University National Alumni Association Convention 2017 Compliance Becoming Exempt From Paying Federal Taxes and Maintaining Exemption Presented By Nathaniel (Nate) Howard

Eligibility Must Be a Chartered Member of SCSUNAA Must Be Financial with SCSUNAA Must Be in Good Standing

Current Tax Exempt Chapters Anderson Tri-Area Greater Augusta Atlanta Greater Columbia Beaufort County Greater Orangeburg Berkeley County Houston Central Virginia Kershaw County Charleston Military Charlotte Savannah Colleton County Southeast Georgia/Fla Darlington Tidewater Peninsula Dallas Fort-Worth Washington DC Fort Bragg-Fayetteville

Facts and Important Dates to Remember There are 34 Chapters in “The Association” and 21 are currently tax exempt. 21/34 = 61.8% Goal: To have 100% of our Chapters to Obtain Federal Tax Exempt Status Fiscal Year: July 1 thru June 30 Filing Deadline: November 15 Period to Add Chapters to Tax Exempt List: First Quarter (Jan – March) of any Given Year. Chapter Presidents Will Be Notified

Important Information Continued Chapters are Required to File Taxes Every Year Three Consecutive Years of Not Filing Will Result in Revocation of Tax Exempt Status IRS Charges a Fee of Up to $400 for Reinstatement File Form 990-N if Gross Receipts is $50,000 or Less File Form 990 or 990EZ if Gross Receipts is more than $50,000 Taxes Must Be Filed on OR Before November 15 It is Not Legal to Collect Donations for Your Chapter if Your Chapter Does Not Have Tax Exempt Status

Requirements For Tax Exemption Obtain Employee Identification Number (EIN). Contact Internal Revenue Service (IRS) for EIN. IRS.com – Complete Form SS-4 Form contains Fax # and Mailing Address for a Choice of Submission Submit EIN, Name of Chapter, Mailing Address, and Contact Person to Nathaniel Howard at howard1972@Comcast.net ** Information subject to change

Consequences of Losing Tax Exempt Status Embarrassment – Chapter will be noticeably missing from the list of tax exempt chapters at each SCSUNAA quarterly meeting. Plus the IRS list on their website all organizations who have lost their tax exempt status Cost – It could cost up to $400 payable to the IRS to regain tax exempt status. Plus chapters that hire a CPA for assistance with the reinstatement form may incur an additional expense Chapter Impairment – You can not legally conduct chapter fundraisers without a 501C3.

Filing Form 990-N First Name Last Name Email Address Confirm Email Address Click on “Send Code.” A code will be sent to your e-mail address Create User Profile Use Code to Continue to the Next Page

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