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WINDS OF CHANGE - TWDC AUDITED BY IRS
Submitted by jerleen1 on Fri, 01/28/2011 - 22:03.
TWDC VISITED BY IRS
Tremont West Development Corp. (TWDC) rings out the old and brings in the new facing an Audit by the Internal Revenue Serivce (IRS). TWDC Board President Chris Alvarado was informed of the Department of the Treasury's intent in a letter dated December 21, 2010, which included/attached Form 4564, Information Document Request (IDR).
At the Board of Director's meeting on Thursday, January 20, 2011, TWDC Executive Director Chris Garland stated that the audit was brought about by random selection and was considered to be just a routine field inspection. Garland stated that he would make further inquiries and inform the board of his findings.
The three (3) day probe is scheduled to begin in February, 2011, and although the IRS information request does ask for prior, current and subsequent years of the organization's records, the notice specifically states that the Audit will cover the TAX Year ending on June 30, 2009.
The two-sided page request lists eighteen (18) multifaceted interrogatories and request for production of documents which includes but is not limited to: Articles of Incorporation, bylaws, proof of tax exempt status, minute books of recorded meetings, membership rosters, handboods, etc., to determine whether there is a meaningful extent of membership support, contracts and leases, cash receipts, cancelled checks, and Federal Employment Tax Returns, list of officer names, position and duties, along with financial records and work papers used to prepare forms 990 and 990-T.
990s are a non-profits tax return and must me made readily available to the public. Research reveals it is considered to be a red flag if any organization stymies at a request for the production of financial information. If a non-profit is not in compliance with the IRS, harsh penalties can be imposed and board members can be sued for allowing such penalties to pile up. Board members are protected from liability only as long as their actions remain within the limits of the orgazation's set up.
The IRS letter arrived just as staff, committee and board members were gearing up for the TWDC Annual Meeting and election of new board members. The newly elected officers will be seated at the board table in February, 2011. The meeting of the TWDC membership is scheduled to take place at the OLA/St. Joseph Center, on January 27, 2011.
"While I see no red flags, the audit speaks for itself," said Garland.
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