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    Is this an entity

    Unusual deal here.

    A group of people came here from an asian country and all stick together.

    When a member of the group has an emergency or death, funds are collected from each member to pay for the funeral or emergency.

    One of the group decides to open a bank account and the members can put money in this account so the next time an emergency comes up, there will be funds to pay it. Three of the members sign on the account. The bank would not open the account unless the the group had a Federal I.D. Number and some bylaws. Soooooo, they get a Federal I.D. number and photocopy some "bylaws" from source unknown and open the bank account.

    Now they are wondering if they have file a tax return.

    I don't think they are a business or a non-profit. It is a group of people that wanted to save money for an emergency and they pooled their money together.

    They could have just opened a joint tenant account and one of the group could be the primary.

    Any ideas? maybe they should close this bank account and start over.

    Any thoughts?

    #2
    Originally posted by DMICPA View Post
    Unusual deal here.

    A group of people came here from an asian country and all stick together.

    When a member of the group has an emergency or death, funds are collected from each member to pay for the funeral or emergency.

    One of the group decides to open a bank account and the members can put money in this account so the next time an emergency comes up, there will be funds to pay it. Three of the members sign on the account. The bank would not open the account unless the the group had a Federal I.D. Number and some bylaws. Soooooo, they get a Federal I.D. number and photocopy some "bylaws" from source unknown and open the bank account.

    Now they are wondering if they have file a tax return.

    I don't think they are a business or a non-profit. It is a group of people that wanted to save money for an emergency and they pooled their money together.

    They could have just opened a joint tenant account and one of the group could be the primary.

    Any ideas? maybe they should close this bank account and start over.

    Any thoughts?
    Main question is just how was the SS4 filled out as to entity?

    of course it is not a money making proposition, and certainly no income tax return should be required. But IF whoever sent in the SS4 return registered it as non profit, that might cause IRS to start to look for a 990 form.

    More information needed. The reponsible party who sent in the SS4 would be the one, with your help of course, to call IRS and determine the group's status.
    ChEAr$,
    Harlan Lunsford, EA n LA

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      #3
      ss-4

      They are not a non-profit.

      They filled it out as an "association"

      They did not fill out the non profit papers.

      It seems to me that there would be little or no interest income on this account. The rate was .03%. If there was an average balance of $1,000, the interest would be 30 cents. No bank 1099 will be issued in this situation.

      Most likely nothing will happen if they leave it as is.

      They should have went to an EA or CPA before dong this!!!!!!!

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