Associations would 'absorb burden' for chapters' tax returns
A large plurality of associations said they would do the taxes of their chapters if the federal government decoupled parent-affiliate returns, according to ASAE.
ASAE conducted a survey of members about the possibility of the IRS ordering chapters and affiliates to start filing separately from parent associations. The IRS also is conducting its own survey.
ASAE’s survey found that if group returns were eliminated, 45.3 percent of parent organizations would absorb the burden of completing the forms on behalf of their chapters or affiliates. Slightly more than 28 percent said the burden would fall to the chapter or affiliate.
More than 87 percent of respondents indicated they would need help from outside practitioners to meet the new filing requirements if group returns were eliminated. Respondents reported a mean of 116 additional hours that would be required to complete separate forms for chapters/affiliates.
The IRS Advisory Committee on Tax Exempt and Government Entities recommended last year that the group exemption process be retained, but group returns should be eliminated because they don’t provide adequate transparency about the activities of subordinate organizations or serve as a mechanism to promote adequate accountability by the subordinate organizations on an individual basis.
In other news, ASAE has asked for a meeting with the Secretary of the Army John McHugh after a new policy was introduced that bans Army personnel attendance at nongovernment meetings. ASAE wants an opportunity early next year to discuss how private sector meetings help train and inform members of the Armed Forces.
McHugh last week suspended Army attendance at all non-Defense Department conferences for the remainder of the year.
Citing the Association of the United States Army annual meeting as an example of meetings typically attended by Army personnel, McHugh said in an Oct. 17 memo that he expects Army officers to presume that soldiers under their command do not need to attend conference activities in person, according to ASAE's Inroads. Details: www.asaecenter.org.
