Welcome to Law-Forums.org!   

Advertisments:




Sponsor Links:

Discount Legal Forms
Discounted Legal Texts


Travel Team Checking Account

The law of the sea.

Travel Team Checking Account

Postby Clud » Mon Nov 28, 2016 3:22 pm

I coach a girls softball team and want to open a checking account to deposit fundraiser money. Also want to use the account to make purchases for uniforms, team equipment and tournament fees. What do I need to do in order to open a account at a bank? We have not filled anything with the IRS. Just need to know the steps to take to make this as easy as possible. We are non-profit, all money brought in will go toward team expenses.
Clud
 
Posts: 35
Joined: Fri Feb 14, 2014 3:40 pm

Travel Team Checking Account

Postby Hyun-Shik » Tue Dec 06, 2016 12:15 pm

Each bank has their own procedures, but, at a minimum your group would need to obtain from the IRS a EIN(Employer Identification Number - or Taxpayer Id number) with Form SS-4, which you can do online. Instructions for Form SS-4 are at http://www.irs.gov/pub/irs-pdf/iss4.pdf and the IRS explains in the right column of page 5 that, when applying for the Employer Identification Number, the club may check a box for `Banking purpose' "if you are requesting an EIN for banking purposes only, and enter the banking purpose(for example, a bowling league for depositing dues or an investment club for

dividend and interest reporting)." check the line for "banking purposes only" and gives the examples, "a bowling league for depositing dues or an investment club for dividend and interest reporting)." http://www.irs.gov/pub/irs-pdf/iss4.pdf on page 5 in the right column under the heading "Banking purpose." Donations will not be deductible, but the fund will not have taxable income if its only income is donations or fees and no profit goes to any insider and it conducts no sales activities to

the public.  It would not need to file annual federal tax returns if it is an unincorporated association(while the c7 organizations need to file annually Form 990).  The problem with most teams, like yours that has "fundraiser money" is that the word "fundraiser" means, at least, in part, sales activities and those would be taxable unless the team becomes qualified as a 501(c)(3) organization.  If you want some details about that let me know.

Narcotics Anonymous World Services advises affiliates who have obtained an EIN for banking purposes only:

--- Start of Excerpt ---

Any NA group that acquires an EIN should consider that the IRS

could at some point in time contact them and request valid

financial activity information. This is one reason that NA groups

will want to maintain detailed records, including treasurer's

records, bank statements, receipts and any other documentation of

their financial activities. We suggest that NA groups maintain

accurate financial records by using the group record worksheets in

the Group Treasurer's Workbook. The worksheets and other above

mentioned records should be kept for at least five years. Care

should be taken when assigning responsibility for storage of the

records, so that they remain available to the group if needed.

---End of Excerpt---http://www.na.org/?ID=bulletins-bull32http://pages.citebite.com/m8d1u7p8hqdu

Other examples are given by the IRS for "Banking Purposes"...

"In order to open a bank account to deposit funds from a

fundraising event, memorial fund, bowling league, or other non-

business purpose, the bank may request an EIN be assigned for

identification purposes."

https://sa2.www4.irs.gov/modiein/individual/help/glossary.jsp#B Harvey Mechanic

Attorney at Law [email protected]

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather more information.
Hyun-Shik
 
Posts: 39
Joined: Wed Feb 05, 2014 4:10 pm


Return to Maritime Law

 


  • Related topics
    Replies
    Views
    Last post