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We were formed in 1987 by the founder who lived in Mississippi. He incorporated us in that state in 1988. He passed away long ago but we maintain our incorporation in Mississippi, but have no active members residing there. We pay the CSC (Corporation Service Company) about $300 per year to represent us as our registered agents. For the life of me I cannot determine what they do for us as we have no record that they have ever sent any correspondence other than an annual bill. I know that there are IRS and tax advantages but


cannot get a clear answer as to what they are. What is the real benefit of being incorporated? Would we be better off just being a social organization? I would certainly appreciate any guidance you can provide and thank you very much.


Ben Catalina First, I would suggest you come to a ConFAM©


President, Aviano Reunion Ass’n where we discuss


these things (among others). To answer your questions directly: 1) As you are incorporated in Mississippi, I presume you have a bank account for that corporation using a Federal ID# issued to the corporation. If this is not so, you have a problem. 2) As a state licensed corporation (in this case the State of Mississippi) you have to pay an annual fee to maintain the corporation in an active condition. Tis is true in almost all states. 3) Every bank account in the U.S. has to have an associated Social Security # or Federal ID #. If you give up your corporation the Federal ID# associated with it becomes inactive, so you would have to apply for a new Federal ID# for your newly created social group. If you use your personal SS# for that account, the IRS probably will pick up all of the deposits and want to know why you did not include this income on your personal tax return. Tis can lead to a personal IRS audit, and perhaps a personal penalty.


D.indd 1


(Edited for clarity) We have about 150 members and have an annual


reunion, either in the USA or in Italy, attracting about 80 people each year. Our dues are $15 per family per year and we have about $5,000 in a bank account. We do not sell anything and we have no income other than dues. I am in Texas, the VP is in Kansas, our newly


elected Secretary-Treasurer is in Colorado, and our Editor is in Alabama. Our main question that we cannot seem to get a clear answer to is why do we need to be incorporated?


Tere is a simple solution to this called AMRF. RFN’s VP Finance, Marc Spiewak, set up a non-profit foundation for situations exactly like this. AMRF (American Military Reunion Foundation) provides its member military reunion groups with a Federal ID#, a free bank checking account, a 501(c)(19) veterans non-profit IRS status, sales tax exemptions in 8 states primarily for your banquet (the other states do not give tax breaks to veterans), a non-profit mailing permit to save postage on your newsletters, an annual P&L statement, and filing of all necessary tax returns. Members also have access to bargain-priced $4 million Reunion Liability Insurance Coverage. Te cost is less, I believe, than your current cost


2/13/12 10:33 AM


for corporate renewal in Mississippi. If you want more detail, email: marc@reunionfriendly.com


for specific answers and exact cost. In your two emails you have provided more


information than I have gleaned from the IRS website and other research. It is really appreciated,


Ben


Page 40


R EUNION F R IENDL Y N EWS • Spring, 2012


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