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EINs, the IRS, and Your SWE Section Finance Committee

Learn about EINs, federal tax exemption, state sales tax exemption, and the treasurer's responsibilities for documentation and tax filing. Understand how to file the ePostcard with the IRS.

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EINs, the IRS, and Your SWE Section Finance Committee

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  1. EINs, the IRS, and Your SWE SectionFinance Committee Kristine Barnes, PE FY18 Finance Committee Chair

  2. Objectives The Participant will be able to: Understand what an EIN is and how to obtain one. Explain the difference between Federal Tax Exemption and State Sales Tax Exemption. File necessary paperwork with the IRS to keep their section in good standing. Understand the treasurer's responsibilities for documentation and tax filing. Know how to file the ePostcard with the IRS

  3. Agenda Taxes and EINs 990-N / ePostcards vs. 990EZ Treasurer Responsibilities Submitting an IRS 990-N (e-Postcard) Step By Step ePostcard Instructions Q & A

  4. Taxes and EINs

  5. EIN – Employer Identification Number • EIN is also know as a Federal Tax Identification Number • Every section should have its own EIN unless you are covered by your University. • EINs are required for reporting interest income by the bank and for the section to be included under the Society’s Federal Tax Exemption. • DO NOT use the EIN of the Society (13-1947735) • DO NOT use the EIN of your University If you are a Professional Section or a Collegiate Section not covered by your University and need an EIN: • Complete IRS form SS-4 and mail it to the IRS (see Resources slide for website information). • Check with your University BEFORE applying for an EIN

  6. Federal Taxes (1) Tax Exempt ≠ Exempt from Filing with the IRS SWE is a 501(c)3 tax exempt organization per IRS regulation. Exemption allows you to NOT pay federal taxes on your income/interest. In some states, inclusion under Society’s Group Exemption will exempt section from state income taxes. Section should check for state specific requirements.

  7. Federal Taxes (2) If you have an EIN, you will file with the IRS. If you do not have an EIN, you will not file with the IRS. • Individual Sections are exempt from Federal taxes by 1 of 2 ways: • They are included in Society’s Group Exemption (501(c)3 Umbrella or Subordinate) and have their own EIN. • They are included in their University’s Exemption and do not have their own EIN. • Contact HQ to confirm section’s inclusion in the group exemption.

  8. State Sales Tax SWE Currently has an agreement with Texas and Florida that exempts all SWE sections from state sales tax. Agreements with California and Minnesota are pending. Other agreements may be made in the future. Each state has its own regulations regarding sales taxes. Sections are not automatically exempt from sales taxes. Section must explore particular situation to determine state tax status as forms and process will vary state by state Federal tax status may help obtain state sales tax exemption. Sections are eligible to file for this, but HQ cannot assist you or guide you through the process

  9. 990-N / ePostcards vs. 990EZ

  10. 990-N (e-Postcard) vs. Full 990 / 990EZ All sections not covered by a University EIN: • Must submit filings to the IRS between July 1st and November 15th • If your section has gross receipts <$50,000 (avg. over 3 years) • Submit IRS form 990-N (also called e-Postcard) • If your section has gross receipts >$50,000 (avg. over 3 years) • Submit full IRS Form 990 or 990EZ • If section receives request from IRS for 990 Report and has not exceeded $50,000 3-year average, check appropriate box on form which indicates section does not meet the reporting requirement, sign and return form to IRS. SWE HQ does not complete this filing on the section’s behalf: it is the responsibility of YOU, the TREASURER, to file each year • The section risks losing the tax-exempt status if not filed every year! Gross receipts are the total amounts the organization received from all sources during its annual accounting period, without subtracting any costs or expenses.

  11. E-Postcard or Form 990 Requirements How to file • To electronically submit Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990EZ, use the Form 990-N Electronic Filing System (e-Postcard). • All filers must register at IRS.gov prior to filing their next Form 990-N. This is a one-time registration; you won’t be asked to register again when filing next year. • Form 990-N must be completed and filed electronically. • There is no paper form. Take screenshots for future reference. Form 990-N filers may also choose to file a complete Form 990 or Form 990-EZ instead. If you have trouble filing or encounter website issues, Call IRS Customer Accounts Services at 877-829-5500. A representative will help file your Form 990-N information.

  12. Lost EIN / Filing Status Unsure of your Filing Status? • If you are not sure of your status, first email finance committee at finance-chair@swe.org • May then be directed to apply for an EIN and file paperwork with SWE HQ Lost your EIN? • Email the finance committee finance-chair@swe.org first • Can also check here, though search mechanism isn’t great • https://apps.irs.gov/app/eos/mainSearch.do?mainSearchChoice=ePostcard&dispatchMethod=selectSearch

  13. Treasurer Responsibilities

  14. Treasurer Responsibilities Transfer section financial records at the end of each year. • Maintain financial reports and tax documents • Document Employer Identification Number (EIN) • Document 501(c)3 Status (through SWE or University) Work as a part of your section’s executive leadership to ensure financial assets are tracked and protected • Ensure Sections IRS filings are complete (EIN up to date) As Treasurer, the following is REQUIRED to be kept on file and transitioned to the new Treasurer: • Section/MAL/Region EIN and copy of last year’s tax forms • OR letter from appropriate official that you are covered by your school

  15. Required Paperwork (EVERY YEAR) Professional Sections • File your section’s e-postcard or 990 tax forms • Can be filed starting July 1st • Due November 15th • Prepare and submit the annual financial report to the Society • Due July 30th Collegiate Sections • Are you covered under your university’s EIN? • Yes: Do not file tax forms or apply for an EIN • No: File your section’s e-postcard or 990 tax form Between July1st and November 15th • Prepare and submit the annual financial report to the Society • Due July 30th Section Reports must be submitted to receive your rebates!!

  16. End of Year Transitions Keep communication open. Continuity helps keep sections healthy. Purpose: Ensure the incoming treasurer has all the information necessary to successfully support the section. Goals: • Incoming treasurer is aware of all the treasurer obligations • New treasurer has calendar of actions required for IRS and SWE requirements The outgoing treasurer should: • Provide key dates by which IRS and SWE actions are required The incoming treasurer should: • Understand their Section’s 501(c)3 status • Ensure key dates on actions for IRS and SWE are in your calendar

  17. Donation Acknowledgement • Acknowledgement letters are required for all donations regardless of amount • IRS’s requirement is anything over $250 • Letter must mention “no services received” or equivalent • Some companies will require form W-9 and send section form 1099 with copy to IRS. • In-kind donations • Also require acknowledgement and thanks • The contributor may ask you to complete IRS form 8283 - Noncash Charitable Contributions.

  18. Record Retention • Hold Permanently • Year-end financial reports • General Ledger and Journal • EIN and SS-4 Request Form • Copy of the Society’s 501(c)(03) Group Exemption Determination Letter from the IRS (circa 1992) • Records of any permanently restricted items (such as donor letters) • Financial or investment policies • Audit reports • Hold for Seven Years • Deposit slips • Officer travel records/reimbursements • General Correspondence • Section bills and receipts including disbursements to members • Bank statements • Paid and canceled checks • Accounts receivable records • Investment records • Grant records

  19. IRS Resources IRS 501(c)3 Charitable Organizations https://www.irs.gov/charities-non-profits/charitable-organizations/exemption-requirements-section-501-c-3-organizations Charity & Non Profit FAQ https://www.irs.gov/charities-non-profits/annual-electronic-notice-form-990-n-for-small-organizations-faqs-how-to-file Applying for Tax Exempt Status https://www.irs.gov/charities-non-profits/application-for-recognition-of-exemption Application for EIN Number: Form SS-4 https://www.irs.gov/pub/irs-pdf/fss4.pdf

  20. Submitting an IRS 990-N (e-Postcard)

  21. What do I need to file? Section EIN Tax year Section’s legal name & mailing address Any other names the Organization uses Name and address of principal officer (Usually Treasurer as they are submitting the filing) Website address if you have one Confirmation that the organization’s annual gross receipts (total income) are $50,000 or less (No $ amounts are reported, you simply answer yes when asked) If applicable, a statement that the organization has terminated or is terminating (going out of business) https://www.irs.gov/charities-non-profits/annual-electronic-notice-form-990-n-for-small-organizations-what-to-report

  22. Step By Step ePostcard Instructions(Screenshots taken in 2017, may vary slightly in future years)

  23. How to Submit a 990-N (e-Postcard) • Go to the IRS website https://www.irs.gov/ and select Charities & Nonprofits

  24. How to Submit a 990-N (e-Postcard) - 2 • Select Annual Reporting and Filing

  25. How to Submit a 990-N (e-Postcard) - 3 • Select the Annual electronic notice (e-postcard) for small exempt organizations

  26. How to Submit a 990-N (e-Postcard) - 4 • Verify that your section meets the listed requirements • Once requirements are verified, select Form 990-N Electronic Filing System (e-Postcard) hyperlink under Ready to file? Scroll Down

  27. First Time User

  28. How to Submit a 990-N (e-Postcard) - 1 • If you are a First Time User (or need to re-register) of the 990-N e-Postcard filing system, select the Get Started button under First Time Users. First Time User

  29. How to Submit a 990-N (e-Postcard) - 2 • Type in your First Name, Last Name, and your email address, and select the Send Code button • You will receive a code within 5 minutes to the email address you provided. That code will expire after 15 minutes. Use a SWE Section Email Address! First Time User

  30. How to Submit a 990-N (e-Postcard) - 3 • Create Your User Profile and select the Continue button • Next page will confirm User Profile Successfully Created, select the Continue button. Note: Document your user profile information for future use on the 990-N e-Postcard filing site. First Time User

  31. How to Submit a 990-N (e-Postcard) - 4 • For New Users Select the Manage E-Postcard Profile button. First Time User

  32. How to Submit a 990-N (e-Postcard) - 5 • Select Exempt Organization in the drop down menu and select the Continue button First Time User

  33. How to Submit a 990-N (e-Postcard) - 6 • Type in your section’s EIN and select the Add EIN button Note: Once you select the Add EIN button, the EIN, Organization Name, Date Added should be populated in the Currently Associated EIN(s) table below. First Time User

  34. How to Submit a 990-N (e-Postcard) - 7 • Select the Create New Filing button. 123456789 First Time User

  35. How to Submit a 990-N (e-Postcard) - 8 • Select the EIN and Organization in which you want to file the 990-N for in the dropdown menu and select the Continue button

  36. How to Submit a 990-N (e-Postcard) - 9 • Answer the appropriate questions using the answers in the dropdown menus and select the Continue button Note: the tax year ending, organization’s legal name, and EIN should all be auto-populated based on your previous EIN submittal. Confirmation of Gross Receipts < $50,000 Society of Women Engineers 123456789

  37. How to Submit a 990-N (e-Postcard) - 10 • Fill in the Organization and Principal Officer information and select the Submit Filing button Note: The organization’s legal name should be auto-populated at the top. The address should match your section’s mailing address. The Principal Officer will most likely be your section president or treasurer (the person submitting the 990-N e-Postcard).

  38. How to Submit a 990-N (e-Postcard) - 11 • You will get a pop-up warning asking if you want to save the data and submit the filing to the IRS. Select the OK button to submit the e-Postcard to the IRS. Note: If you are unsure, select the Cancel button and go back to review your submittal.

  39. How to Submit a 990-N (e-Postcard) - 12 • You will get a confirmation page summarizing the Form 990-N e-Postcard submittal. • PRINT THIS PAGE FOR YOUR RECORDS. You should receive a confirmation of submittal acceptance from the IRS within 24 hours of submittal. KEEP THIS EMAIL

  40. Returning User

  41. How to Submit a 990-N (e-Postcard) - 1 • If you are a Returning User of the 990-N e-Postcard filing system, enter your username and select the Log In button under Returning Users Returning User

  42. How to Submit a 990-N (e-Postcard) - 2 • Select the Continue button on the Online Security Information Page Note: this page will show you your most recent login history every time you login. Returning User

  43. How to Submit a 990-N (e-Postcard) - 3 • If you are a Returning User, select the Manage Form 990-N Submission button Returning User

  44. How to Submit a 990-N (e-Postcard) - 4 • Select the Create New Filing button Society of Women Engineers 123456789 Note: If you are a previous user of the 990-N e-Postcard system, a list of previous submissions will be on this page. If you are a new user, no additional submissions should be listed. Returning User

  45. How to Submit a 990-N (e-Postcard) - 5 • Select the EIN and Organization in which you want to file the 990-N for in the dropdown menu and select the Continue button

  46. How to Submit a 990-N (e-Postcard) - 6 • Answer the appropriate questions using the answers in the dropdown menus and select the Continue button Note: the tax year ending, organization’s legal name, and EIN should all be auto-populated based on your previous EIN submittal. Confirmation of Gross Receipts < $50,000 Society of Women Engineers 123456789

  47. How to Submit a 990-N (e-Postcard) - 7 • Fill in the Organization and Principal Officer information and select the Submit Filing button Note: The organization’s legal name should be auto-populated at the top. The address should match your section’s mailing address. The Principal Officer will most likely be your section president or treasurer (the person submitting the 990-N e-Postcard).

  48. How to Submit a 990-N (e-Postcard) - 8 • You will get a pop-up warning asking if you want to save the data and submit the filing to the IRS. Select the OK button to submit the e-Postcard to the IRS. Note: If you are unsure, select the Cancel button and go back to review your submittal.

  49. How to Submit a 990-N (e-Postcard) - 9 • You will get a confirmation page summarizing the Form 990-N e-Postcard submittal. • PRINT THIS PAGE FOR YOUR RECORDS. You should receive a confirmation of submittal acceptance from the IRS within 24 hours of submittal. KEEP THIS EMAIL

  50. Questions?

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