Changes Affecting Your Club for 2018 Tax Reporting
Is it likely that it will be better in future years?
On Monday 04/06/2018 at 3:23 pm, Laurie Frederiksen wrote:
Clubs disbanding in 2018 will need to comply with the new 2018 audit rules for their reporting. Tax wise, it's a more complicated year to disband.
The IRS has explained how to do that in the current version of their instructions that you can find here:
It includes a discussion of who can opt out and what you need to do to do so on your tax form.
What gets more complicated is that there are other changes probably coming to reporting for 2018 because of the massive tax law changes at the end of 2017. The IRS has not released any guidance on what those might be yet. You may need to comply with those also. We don't know that yet.
When you disband, you have not only income, but also final withdrawal information to report on your final taxes or K-1's.
So far, we are recommending you work with an accountant for partial year 2018 returns due to the uncertainty of what you need to file and the extra complexity of filling in final tax returns correctly.
It's up to you. The IRS does not issue an income threshhold below which you don't have to worry about an audit. Nor can we provide a judgement on that. That would also be something included in the services you'd get from an accountant.
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On Fri, Jun 1, 2018 at 12:40 PM, Lillian Schiavo via bivio.com <email@example.com>
How does this impact clubs that are disbanding in 2018?
I'm still not sure how even to prepare the final taxes using
the 2017 forms. Given that our expenses, exceed our
dividend income, it doesn't make sense to pay a professional
accountant to prepare our forms, as the site suggests.
I have been the one tasked with doing the treasury and tax
preparation, but by default, not because this is something
that I want to do, and definitely do not want to be held
accountable for any potential error from a previous
Can a disbanding club "opt" out? Where is this done? The
club will not be in existance any more, so how would one go
about accessing the members, if the club doesn't opt out.
Except for one year, our club has had very little to zero
income (our expenses exceeded our dividend income). What
threshold does the audit use for determining if they will
audit a club.