Agenda - Council - 05/14/2013 - Laserfiche WebLink

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THE RAMSE'i FIREFIGHTERS RELIEF UNRELATED BUSINESS INCOME TAX RETURN If you receive more than $1,000 annually in gross receipts from a regular trade or business you may be subject to Unrelated Business Income Tax and required to file Form 990-T, Exempt Organization Business Income Tax Return. Special rules for organizations exempt under sections 501(c)(7), (9), (17) and (19) are described in Publication 598. There are several exceptions to the tax on unrelated business income. 1. Income you receive from the performance of your exempt activity is not unrelated business income. 2. Income from fundraisers conducted by volunteer workers, or where donated merchandise is sold, is not unrelated business income. 3. Income from routine investments such as certificates of deposit, savings accounts, or stock dividends is usually not unrelated business income. There are special rules for income derived from real estate or other investments purchased with borrowed -funds. This income is called "debt financed" income. For additional information regarding unrelated business income tax see Publication 598, Tax on Unrelated Business Income of Exempt Organizations, or call our toll free number shown above. PUBLIC INSPECTION OF APPLICATION AND INFORMATION RETURN You are required to make your annual information return, Foim 990 or Form 990-EZ, available for public inspection for three years after the later of the due date of the return, or the date the return is filed. You are also required to make available for public inspection your exemption application, any supporting documents, and your exemption letter. Copies of these documents are also required to. be provided to any individual upon written or in person request without charge other than reasonable fees for copying and postage. you may fulfill this requirement by placing these documents on the Internet. Penalties may be imposed for failure to comply with these requirements. Additional information is available in Publication 557, Tax -Exempt Status for Your Organization, or you may call our toll free number shown above. EXCESS BENEFIT TRANSACTIONS (Applies to 501(c)(4) organizations) Excess benefit transactions are governed by section 4958 of the Code. Excess benefit transactions involve situations where a section 501(c)(4) organization provides an unreasonable benefit to a person who is in a position to exercise substantial influence over the organization's affairs. If you believe there may be an excess benefit transaction involving your organization, you should report the transaction on Form 990 or Form 990-EZ. Additional information can Letter 948 (DO/CG)