The following are bullet points to try to explain my client's current situation:
- Form filed is 1120C - Original Park. Original Park is on a Fiscal year 05/01/2016 through 04/30/2017. I am calling this entity, Original Park, because in 2014, the former treasurer dissolved the Original Park with the State of FL and registered Park 2 as a non-profit with the State. She thought since Park 2 was a non-profit with the State, a federal tax return was no longer needed. However the EIN for Original Park continued to be used for filing sales tax. Sales tax was collected on sales of T-shirts.
- Trailer park consists of homeowners who rents the lot but own their home.
- Park collects a $30 fee from homeowners to help pay for social events. This fee is not a required fee. Those who don't pay are not included in social events. If someone wanted to attend the social event who is not a member may buy a ticket.
- My client moved into the trailer court last year and took over as treasurer. Form 1120C for Original Park wasn't filed for the 2014 and the 2015 tax year. FL-1120 was not filed as well. In 2016 I filed the 2014 and the 2015 Form1120C for the Original Park but not the FL-1120 for the Original Park. No late filing fee was assessed because no tax was due.
- Nothing was filed with the IRS for Park 2. My experience with non-profits is very limited. I don't know but it seems to me that something needs to filed with the IRS to be accepted as a tax-exempt entity - Form 1024. Is this correct?
- Other issues: Original Park has been operating in the State the past two years and is not registered. (I did not discover this until this year.) Client does not have the funds to pay the reinstatement fee.
- Client would like tax exempt status under 501(c)7. I told her that she needs to see a CPA that has experience in the non profit area.
As you can see this situation is a complete mess. I think my client should make Original Park a final year this year and pursue tax exemption status with the IRS. However should she pursue tax exempt status for Park 2 or start fresh and register a new corporation with the state? The potential problem with Park 2 is nothing has been filed with the IRS for the past two years for Park 2.
Since the park is mostly filled with snow birds, the summer time has no activity. So I thought about making the 2016 tax return a final year. Another problem I run into with this is Form 966 is due 30 days after dissolution. Is there a late penalty if this form is not filed on time?
This corporation, as you most likely already gathered, is not dealing with a lot of cash. ~$6,500 of revenue and $6,200 in expenses. No tax was due because there is a small NOL carry forward.
Any advice that someone can provide me on how to advise my client regarding the fiscal year 05-01-2016 through 04-30-2017 is greatly appreciated.
- Form filed is 1120C - Original Park. Original Park is on a Fiscal year 05/01/2016 through 04/30/2017. I am calling this entity, Original Park, because in 2014, the former treasurer dissolved the Original Park with the State of FL and registered Park 2 as a non-profit with the State. She thought since Park 2 was a non-profit with the State, a federal tax return was no longer needed. However the EIN for Original Park continued to be used for filing sales tax. Sales tax was collected on sales of T-shirts.
- Trailer park consists of homeowners who rents the lot but own their home.
- Park collects a $30 fee from homeowners to help pay for social events. This fee is not a required fee. Those who don't pay are not included in social events. If someone wanted to attend the social event who is not a member may buy a ticket.
- My client moved into the trailer court last year and took over as treasurer. Form 1120C for Original Park wasn't filed for the 2014 and the 2015 tax year. FL-1120 was not filed as well. In 2016 I filed the 2014 and the 2015 Form1120C for the Original Park but not the FL-1120 for the Original Park. No late filing fee was assessed because no tax was due.
- Nothing was filed with the IRS for Park 2. My experience with non-profits is very limited. I don't know but it seems to me that something needs to filed with the IRS to be accepted as a tax-exempt entity - Form 1024. Is this correct?
- Other issues: Original Park has been operating in the State the past two years and is not registered. (I did not discover this until this year.) Client does not have the funds to pay the reinstatement fee.
- Client would like tax exempt status under 501(c)7. I told her that she needs to see a CPA that has experience in the non profit area.
As you can see this situation is a complete mess. I think my client should make Original Park a final year this year and pursue tax exemption status with the IRS. However should she pursue tax exempt status for Park 2 or start fresh and register a new corporation with the state? The potential problem with Park 2 is nothing has been filed with the IRS for the past two years for Park 2.
Since the park is mostly filled with snow birds, the summer time has no activity. So I thought about making the 2016 tax return a final year. Another problem I run into with this is Form 966 is due 30 days after dissolution. Is there a late penalty if this form is not filed on time?
This corporation, as you most likely already gathered, is not dealing with a lot of cash. ~$6,500 of revenue and $6,200 in expenses. No tax was due because there is a small NOL carry forward.
Any advice that someone can provide me on how to advise my client regarding the fiscal year 05-01-2016 through 04-30-2017 is greatly appreciated.
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