Tuesday, December 24, 2013

Important End of Year Duties!

Even if your fiscal year does not end on December 31st, there are still some things you should be aware of as the year comes to an end to make sure your club stays in compliance.

While your fiscal year may end in June, you still may have to consider some end of year tasks like filing 1099 reports and state or local filings.

1099 Filing

If you have paid any non-incorporated vendors more than $600 in the current calendar year you'll need to issue that vendor a 1099.  The IRS deadline for issuing 1099s to qualifying individuals is January 31st, 2014. Failure to file the required 1099 forms may result in severe penalties and embarrassment for your club.

 The IRS site can you give you more details, however here's an excerpt from the IRS instructions for filing 1099s.

File Form 1099-MISC, Miscellaneous Income, for each 
person to whom you have paid during the year:

At least $600 in rents, services (including parts and 
materials), prizes and awards, other income payments
medical and health care payments, crop insurance proceeds, 
cash payments for fish (or other aquatic life) you purchase 
from anyone engaged in the trade or business of catching 
fish, or, generally, the cash paid from a notional principal 
contract to an individual, partnership, or estate;

Treasurer's Briefcase has some simple, fast, and easy tools to make the job a breeze!  When you record payments in your check register, you can designate contacts as 1099 contacts and safefly store their encrypted tax id (social security number) along with their other contact information.  
Be sure to verify their correct address since this is the address you'll want to use when you send the vendor their 1099 form.  Once you've entered the expense in your checkbook, and you've checked the 1099 vendor
box, you should edit the contact's information and add their address and social security number. Treasurer's Briefcase by default encrypts SSNs in your database and masks all SSNs on reports. Only administrators can see or edit vendor SSNs.

You can use the Reports menu to produce a 1099 report that you can consult when completing your 1099MISC forms.  The 1099 report will detail all 1099 vendors and aggregate their payments, making it easy for you to determine which vendors require that you submit a 1099.

As a service to TBC members, Lauer-Millen, CPAs can help you file the required paperwork and issue the 1099s necessary to your vendors for a special reduced fee. 

State Filings

State regulations vary, but some require that you file a return or some kind of statement by year's end with one of their departments or divisions that oversee charitable institutions.  Check out our state by state guide.   If you are in doubt about what your state requires, feel free to contact Lauer-Millen, CPAs .

Other Considerations

Charitable Receipts - If you have not been giving your donors a charitable receipt acknowledging the value of their tax deductible donation you should do so before January 31st.  Review your the activity in your Contributions, Gifts and Grants category to determine those individuals that may require a receipt.  You may also want to review your fundraising categories for any potential fundraisers in which donors received partial value from their fundraising donation.  An example would be a Silent Auction at which a donor paid more than the fair market value for an item.

Mid-Year Review

For some clubs, especially PTAs and PTOs, December 31st marks the half-way point of your term as treasurer.  Now is a good time to assess the state of your organization, review your finances and show the board what a great job you've been doing!

Review your budget, make sure your checkbook has been reconciled and remember to record all outstanding transactions.  By cleaning up any issues now, you'll pave the way for a clean audit and transition at the end of your term.

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