Project #206 Checksheet 501(c)(6) Business Leagues - Filers 1. Agent’s Name ______________________________________________________ 2. Group number __________ 3. Phone number (____)____-______ Entity Questions 4. Organization Name: entered by EPP 5. EIN: entered by EPP 6. Tax Period: entered by EPP a. If you audited a different tax period than the one shown, enter the tax period of the primary return you audited. _________(YYYYMM) 7. Based on information secured during your initial contact, is this organization properly classified as a business league? Yes___ No___ a. If not, what is the correct subsection? (__)(____) If you answered “No” to Question # 7, STOP HERE. Do not complete the rest of the checksheet. Return the disk to your manager, to be forwarded to Exam Planning & Projects (EPP). 8. Is the organization active? Yes___ No___ If no, enter the last year of activity ________(YYYYMM), and check all that apply: a. b. c. d. e. f. ___ Terminated ___ Formally dissolved by board resolution ___ State was notified of termination or dissolution ___ Went out of existence, no formal dissolution ___ Unable to locate ___ Inactive but not dissolved. Organization plans to become active in future.
If you answered “No” to Question #8, STOP HERE. Do not complete the rest of the checksheet. Return the disk to your manager, to be forwarded to Exam Planning & Projects (EPP). See Project Instructions.
1
9. NTEE Code or Activity code of record: entered by EPP a. If the NTEE Code is incorrect, what should it be? ____(enter one letter + 2 digits) b. If the Activities Codes were incorrect, what should they have been? ___,___,___ (enter 3-digit activity codes, primary, secondary and tertiary) This question refers to the BMF activity code, not the AIMS activity code. Note: Form 2363-A must be completed and submitted with the closed case file if any of these EO-BMF data elements are incorrect: EIN Primary Name Current Address Affiliation Code Group Exemption Number Ruling Date Organization Code Activity Code Census Questions 10. What type of information would the organization officers like to see added to the IRS website? ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ 11. How do officers and board members prefer getting information from the IRS? (Check all that apply): a. b. c. d. e. f. g. h. ___ Website ___ Customer Service call-in site ___ Walk-in site ___ Publications, brochures, pamphlets ___ Notices, announcements ___ Direct Correspondence ___ Seminars, workshops ___ EO conferences NTEE code Area Office Code Accounting Period Filing Requirement Code Asset Code Income Code Status Code
2
12. Would officers of the organization be interested in attending an IRS workshop about labor unions, or exempt organizations in general? Yes___ No___ a. If so, what topics would they like to see covered? ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ 13. What type of organization is this? (Check one) a. b. c. d. e. ___Trade association ___Chamber of commerce ___Real-estate board ___Professional football league ___Other business league
14. What is the primary focus of the organization? (Check one) a. b. c. d. e. f. g. h. i. ___Trade shows, conventions ___Grass roots lobbying ___Provide insurance benefits to members ___Training ___Political activities ___Communication with members (newsletters, publishing) ___Own or operate a building ___Social activities ___Other
15. Approximately how many members did the organization have during the primary year under audit? a. b. c. d. e. f. g. ___ Less than 50 ___ 51-100 ___ 101-500 ___ 501-1,000 ___ 1,001-5,000 ___ 5,001-10,000 ___ More than 10,000
3
16. Who prepared the Form 990? a. b. c. d. e. f. g. ___ CPA ___ Attorney ___ Enrolled Agent ___ Un-enrolled preparer ___ Organization officer ___ Volunteer member of the organization, not an officer ___ Other
17. Does the organization have a website? Yes___ No___ a. If yes, did the website reveal any noncompliance? Yes___ No___ Organizational Questions 18. How is the entity organized? Corporation ___or Association___ (check one) 19. How is this organization related to other organizations? a. b. c. d. ___Parent organization, part of a group exemption ___Subordinate organization, part of a group exemption ___Affiliate, not part of a group exemption ___Stand-alone organization
20. Have the articles of incorporation or association, or the by-laws, been amended since the organization received its determination letter? Yes ___ No___ a. Have the amendments been reported to the IRS? Yes ___ No___ b. Did the changes result in disqualifying features? Yes___ No___ Operational Questions 21. Did the organization conduct gaming? Yes___ No___ If yes, check all that apply: a. b. c. d. e. ___ Gaming was conducted directly by the organization ___ A promoter conducted gaming activities ___ Gaming activities were for members only ___ The organization was liable for filing Forms 730 and/or 11-C ___ The organization filed all Forms 730 and 11-C for which it was liable
4
22. Enter the AIMS disposal code you used, or expect to use, to close the case:____ a. If the case was closed No Change with Advisory, please give a BRIEF description of the advisory, or send a copy of the closing letter with the survey disk. ___________________________________________________________________ ___________________________________________________________________ 23. Did the organization earn gross income from non-member sources totaling in excess of $1,000 during the year under audit? Yes___ No___ If the answer to Question #23 is “No”, skip ahead to Question #30. 24. What was the source of the non-member income? (Check all that apply) a. b. c. d. e. f. g. h. i. ___ Debt financed rental income ___ Rental income – personal services rendered ___ Sales of merchandise ___ Fees for services ___ Tickets to organization events sold to non-members ___ Dues and other income from associate members ___ Gaming proceeds ___ Advertising ___ Other
25. Has the organization incurred continuing UBI losses over the 3 years ending with the year under audit? Yes___ No___ 26. Did the organization file Form 990-T prior to the audit? Yes___ No___ If the answer to Question #26 is “No”, skip ahead to Question #29. 27. Were adjustments made to the Form 990-T as a result of the audit? Yes___ No___ If the answer to Question #27 is “No”, skip ahead to Question #30. 28. What were the reasons for the adjustments to the Form 990-T? (Check all that apply) a. b. c. d. ___ Improper expense allocation ___ Unreported income ___ Unsubstantiated or non-deductible expenses ___ Other
5
If you answered Question #28, skip Question #29 and go directly to Question #30. 29. What reason did the organization give for not filing voluntarily? (Check all that apply) a. b. c. d. e. ___ Not aware of F990-T requirements ___ Relied on tax professional ___ Incorrectly applied rules on non-member income ___ Poor record-keeping ___ Other
30. Did the organization have employees? Yes___ No___ If the answer to Question #30 is “No”, skip ahead to Question #35. 31. Did the organization timely and accurately file all employment tax returns? Yes___ No___ If the answer to Question #31 is “Yes”, skip ahead to Question #35. 32. What was the reason for the noncompliance? (Check all that apply) a. b. c. d. ___ Not aware of 941 or 940 filing requirements ___ Relied on tax professional ___ Incorrect application of law ___Other
33. What generated the employment tax issue? a. b. c. d. e. f. ___ Officers’ personal use of organizations’ vehicle(s) ___ Non-accountable travel plan ___ Waiver of dues in exchange for services ___ Incorrectly classified workers ___ Incorrect treatment of fringe benefits, other payments ___ Other
34. Did any employment tax adjustment result in a discrepancy adjustment or referral? Yes___ No___ 35. Did the organization provide particular service to members? Yes___ No___
6
36. If particular services were provided, what were they? (Check all that apply) a. b. c. d. e. f. ___Registry services or referrals to members’ businesses ___Advertising ___Appraisal or valuation services ___Auction or sales services ___Use of organization property (timeshares, boats, recreational property) ___Other
37. Did the organization make expenditures for the purpose of carrying out an exemption function as defined in IRC 527(e)(2)? Yes___ No___ If the answer to Question #37 is “No”, skip ahead to Question #48. 38. Did the organization have a Political Action Committee (PAC) or use a separate segregated fund to pay political expenditures? Yes___ No___ 39. If “No”, what was the reason given by the officers for not setting up a segregated fund? (Check all that apply) a. ___Unaware of law pertaining to political expenditure b. ___Aware of law but confused about proper application c. ___Intended to set up segregated fund, but the fund was incorrectly established and was not actually segregated d. ___Chose not to set up segregated fund e. ___Relied of professional advice f. ___Other 40. If the answer to Question #37 is “Yes”, did the organization file Form 8871? Yes___ No___ 41. If the answer to Question #40 is “No”, what was the reason given by the officers for the organization not filing the Form 8871? a. b. c. d. e. ___No investment income ___Officers did not believe expenditures were political ___Not aware of Form 8871 filing requirements ___Relied on professional advice ___Other
42. If the answer to Question #38 is “Yes”, did the PAC or fund have its own EIN? Yes ___ No___ 43. Did the PAC file Form 8871? Yes___ No___
7
44. If the answer to Question #43 is “No”, what was the reason given by the officers for not filing the Form 8871? (Check all that apply) a. b. c. d. e. f. g. h. ___Thought the organization had properly filed Form 8871 ___No investment income ___Not aware of Form 8871 filing requirements ___Officers did not believe expenditures were political ___PAC is a Federal PAC and files with the FEC ___Gross receipts annually were less than $25,000 ___PAC’s tax year ends prior to 7/1/2000 ___Other
45. If the answer to Question #37 is “Yes”, did the organization file Form 1120-POL? Yes ___ No___ 46. If the organization had established a PAC, did the PAC file a Form 1120-POL? Yes___ No___ 47. If the answer to Question #46 is “No”, what was the reason given by the officers for not filing Form 1120-POL? a. b. c. d. e. ___No investment income ___Officers did not believe expenditures were political ___Not aware of Form 1120-POL filing requirements ___Relied on professional advice ___Other
48. If delinquent returns were secured, please check all that apply: a. b. c. d. e. f. g. h. i. j. k. l. ___ 990-T ___ Prior year delinquent 990 ___ 941 ___ 940 ___ 945 ___ 1099/W-2/W-2G ___ 730 ___ 11-C ___ 8871 ___1120-POL ___8872 ___990 for the PAC
Thank you for completing the checksheet and participating in this project. Look for the results of the study in the EPR newsletter and the TE/GE website. Please return the disk to your manager as soon as you are able to respond to the questions with reasonable assurance.
8