September tax deadlines & a reminder

Two upcoming deadlines, both September 17, 2012 will affect a large number of nonprofit organizations. For nonprofits which use a calendar year for accounting, quarterly tax payments are due. Here are the details:

–         Pay quarterly tax payment if you expect $500 or more income from unrelated business income tax. (Examples of UBIT are rent from certain types of property and gaming income, such as bingo.) See Filing your return for UBIT for more information.

–         Complete Form 990-W for estimated taxes.

–         Deposit payments electronically using the IRS’ Electronic Federal Tax Payment System (EFTPS).

A second deadline is for self-employed workers who do not voluntarily withhold federal income tax. Their third quarter tax payment is due on September 17, 2012.

Of course, the regular semiweekly and monthly withholding requirements apply as usual.

Writing about deadlines makes it a good time to give you a gentle reminder about record-keeping. Especially when you are a 501(c)(3) tax-exempt organization, you need pristine records. Here is a checklist of records needed to make sure that you are ready for tax preparation and/or an audit:

–        Cash/check contributions of $250 or more

–        Non-cash items valued at $5,000 or more

–        Car, boat or plane donation to the church

–        Personnel records for each employee (Form W-4 with accurate name, address, SSN, withholding status)

–        Independent contractor payment records

–        Reimbursements

–        Health insurance and other insurance policies

–        Bank statements

–        501(c)(3) letter

There’s no deadline on recordkeeping, but life is easier when everything is kept current and in an easily accessible location.