Tax Time Again - "How does a club go about getting the taxes done?"
Christine wrote...
I am the financial officer for the investment club I am in and I have no idea how to go about getting the taxes done.  What form do I fill out? 
With few very limited exceptions, for Federal Tax purposes, an investment club (partnership) must file an informational tax return each year.   Informational return?    That's right, the club itself has no tax obligation.  The tax obligations realized by the club are allocated between and flow through the club to each of the club members.    Therefore, the club must simply provide the IRS with the "information" pertaining to the taxable items allocated to each of its members.  This is done by completing the following...
Form 1065 U.S. Partnership Return of Income provides information about the club as a whole.
Form 1065 (Schedule K-1) Partner's Share of Income, as the name implies, provides information as to each members allocated share of each tax related item such as interest, income, dividends, expenses, and realized gains / losses.   One for each person who was a member of the club at any time during the year.
Form 1065 (Schedule D) Capital Gains and Losses (only required if the club realized any capital gain or loss during the year)
Does every member have to fill out the form? 
The club is obligated to provided the completed appropriate forms to the IRS and it's members.   Each member then takes this information and includes it on their individual tax return.  
 We are a partnership and we have not sold any stock as of yet. 
Let me throw out a note of caution.  Many clubs don't realize that if they receive cash in lieu of fractional shares resulting from a corporate stock split, merger, or spin-off that they have in effect SOLD stock.    Therefore, don't automatically assume that you haven't sold stock just because your club hasn't entered a sell order with your broker.
We do not own any mutual funds.  What do I do?
After the end of the year and once you have received all of the 1099's and account statements, verify and reconcile your club records against those statements.    Once you have insured that your club records are complete and accurate for the tax year, complete the club tax return.     If you are using bivio, this is easy!   bivio uses your data and completes the tax return, in its entirety, for you.   Simply go to your club in bivio and click on Accounting > Taxes.  Then follow the instructions provided on that page.   Note: Tax preparation for the  2000 tax year will be available in bivio in early January 2001.    If you are doing your tax forms manually, go to or contact the IRS directly for the appropriate forms and instructions.
Once done, you'll need to send one copy of all of the forms to the IRS, you'll need to keep one copy of all of the forms for the club's permanent records, give each member a copy of their Form K-1, and you might need a copy of the entire set of forms to send to the state in which the club is formed.    Each state is different.  Some require a partnership to file a tax return, others do not.    You might find the following link helpful in contact your state for specific requirements.
Jerry Dressel
St.Louis, Missouri