Tiny Homeschool Groups: Do We Need to Pay Taxes?

Tiny Homeschool Groups: Do We Need to Pay Taxes?

Tiny homeschool groups have different challenges than large programs. They are limited on resources, volunteers, and activities. But they still have questions about legal status, money and taxes that the large homeschool organizations have.

In this 4-part podcast series, Carol Topp, CPA answers the common questions that tiny homeschool groups face. All podcasts are available at HomeschoolCPA.com/Podcast

  • Episode #175 Are We a Nonprofit?
  • Episode #176 Do We Need to File Anything?
  • Episode #177 Do We Need to Pay Taxes?
  • Episode #178 Do We Need a Bank Account?

In this episode Carol Topp will explain taxes for tiny homeschool groups:

  • How a tiny homeschool group can be tax exempt without applying.
  • How tiny groups can self-declare tax exempt status with the IRS.
  • State income tax exemption.
  • The IRS annual report Form 990-N.
  • Sales tax for small nonprofit organizations.

 

Join the Facebook group for homeschool leaders: I am a Homeschool Group Leader. 1,000+ homeschool leaders offer ideas, encouragement and respectful exchange of ideas. https://www.facebook.com/groups/72534255742/

 

Featured Product

The IRS and Your Homeschool Organization

Does your homeschool group need to pay taxes? Could they avoid paying taxes by being a 501c3 tax exempt organization? Do you know the pros and cons of 501c3 status? Do you know what 501c3 status could mean for your homeschool group?

I have the answers for you in my book The IRS and Your Homeschool Organization. The information I share in my book has been helpful to homeschool support groups, co-ops, music and sports groups and will help you understand:

  • The benefits of 501c3 status
  • The disadvantages too!
  • What it takes to make the IRS happy
  • What your state requires
  • Why your organization should consider becoming a nonprofit corporation
  • What is the difference between nonprofit incorporation and tax exemption
  • IRS requirements after you are tax exempt

 

 

 

Webinar: IRS and State Filings for Homeschool Groups

Getting 501c3 tax exempt status is a great accomplishment! If you’ve done that, congratulations!

But don’t think you are done with government forms just yet! Your state and the IRS have several reports that must be filed regularly to maintain your precious tax exempt stats.

Carol Topp, CPA the HomeschoolCPA has helped over 100 homeschool organizations apply for tax exempt status. She has prepared a webinar on IRS and State Filings for Homeschool Nonprofits. Carol explains the IRS annual reports for tax exempt nonprofits and how you can know what your state requires.

The LIVE webinar will be held on Wednesday August 21, 2019 at 8 pm ET, 7 pm CT, 6 pm MT and 5 pm PT

You will learn:

  • The importance of maintaining 501c3 tax exempt status
  • The IRS Form 990 series. What form your group needs to file.
  • How to know if you’ve missed filing IRS returns
  • How to see Form 990-EZs and 990s from other nonprofits.
  • An explanation of the IRS Form 990-N.
  • What filings may be required by your state with examples

After the webinar you will be equipped to file on your own the IRS Form 990-N and state forms saving you hundreds of dollars in professional fees.


This webinar is the third in a series of 3 webinar to teach homeschool nonprofit leaders how to create a nonprofit, get and maintain tax exempt status. The other two webinars are:

I highly recommend you watch the first two webinars on Create a Nonprofit for Your Homeschool Community and 501c3 Application for Homeschool Nonprofits. They are both a precursor to this webinar and tells you what to do to create a nonprofit and apply for 501c3 tax exempt status.


 

This third webinar on IRS and State Filings is for Homeschool Nonprofits if for groups that have received (or applied for) for tax exempt status with the IRS and:

  • Are unsure about IRS annual returns
  • Don’t know what forms their state requires from nonprofit organizations
  • Do fundraisers or ask for donations
  • Received a letter from the IRS or their state about missed reports
  • Need to know what to do to maintain their tax exempt status
  • Want to know what it takes to run a compliant nonprofit organization
  • People who want to DIY the IRS and state flings but need an experienced expert to teach them how.

The webinar will last approximately one hour. There will be time for your questions. It will be recorded for viewing later.

The cost is only $10 and you will receive:

  • Access to the live webinar on Wednesday August 21, 2019
  • An opportunity to ask questions via the live chat room
  • Handout of the slides
  • Recording of the webinar to watch later
  • IRS Users Guide for Form 990-N
  • Sample IRS Form 990-N for a homeschool group
  • Blank IRS Form 990-EZ and Instructions
  • Sample letter to guide to to understand your state and IRS filing requirements

I hope to see you LIVE on August 21, 2019 at 8 pm ET for this webinar!

 

Carol Topp, CPA
HomeschoolCPA.com
Helping Homeschool Leaders maintain tax exempt status.

Tiny Homeschool Groups: Do We Need to File Anything?

Tiny Homeschool Groups: Do We Need to File Anything?

Tiny homeschool groups have different challenges than large programs. They are limited on resources, volunteers, and activities. But they still have questions about legal status, money and taxes that the large homeschool organizations have.

In this 4-part podcast series, Carol Topp, CPA answers the common questions that tiny homeschool groups face. All podcasts are available at HomeschoolCPA.com/Podcast

  • Episode #175 Are We a Nonprofit?
  • Episode #176 Do We Need to File Anything?
  • Episode #177 Do We Need to Pay Taxes?
  • Episode #178 Do We Need a Bank Account?

In this episode of the HomeschoolCPA podcast, Carol Topp discusses:

  • Bylaws do not typically need to be filed anywhere. They are an internal document. Sample bylaws for a homeschool group
  • Articles of Association (if you remain an unincorporated association) or Articles of Incorporation (if you formed a nonprofit corporation in your state). Samples available here
  • Charitable solicitation registration if you solicit donations or hold fund raisers in your state. Get information on your state’s filing requirements from https://www.harborcompliance.com/information/nonprofit-compliance-guide
  • Business licenses for nonprofits (only 6 states require a business license)
  • Employer Identification Number. Helpful tips.

 

Join the Facebook group for homeschool leaders: I am a Homeschool Group Leader. 600+ homeschool leaders offer ideas, encouragement and respectful exchange of ideas. https://www.facebook.com/groups/72534255742/

 

Featured Product

Homeschool Co-ops:
How to Start Them, Run Them and not Burn Out

Have you ever thought about starting a homeschool co-op? Are you afraid it will be too much work? Do you think you’ll have to do it all by yourself? Starting a homeschool co-op can be easy! This book Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out will give you ideas, inspiration, tips, wisdom and the tools you need to start a homeschool co-op, run it and not burn out!

Click Here to request more information!

 

Is your homeschool group “just a bunch of moms”?

I’ve heard this too many times from homeschool group leaders to ignore it any longer.

“We’re just a bunch of homeschool moms”

It’s usually used along with one of these sentences,

…therefore we don’t want to (or need to) ...

  • be formally structured
  • follow the law
  • pay taxes
  • apply for tax exempt status
  • pay our workers as employees (according to the law)
  • record our income or expenses
  • notify our church host of the for-profit nature of our group, etc…

I’ve heard or read just about every one of these excuses!

Does saying “we’re just a bunch of homeschool moms” imply that:

  • homeschool moms are incapable of running legitimate businesses or nonprofit organizations?
  • homeschool moms can’t understand legal and tax issues?
  • homeschool moms are claiming ignorance as a defense against obeying the law?

Homeschool moms are intelligent, capable women. I know of hundreds of homeschool moms running businesses and nonprofit organizations very successfully and legally. I know some that are accountants and lawyers or, in the true spirit of homeschooling, are self-educated to understand complex tax and legal situations.

So let’s not imply that homeschool moms are not capable or not intelligent by saying “we’re just a bunch of homeschool moms”!

Instead, we should do what we do at home with our children:

Get educated about the legal and financial aspects of running a homeschool organization.

I have resources to help:

 

Carol Topp, CPA

Helping Homeschool Leaders who are smart and capable!

 

How to self declare tax exempt status

In my webinars on Creating a Nonprofit for a Homeschool Community and 501c3 Application for Homeschool Nonprofits, I briefly mentioned that some homeschool groups can self declare tax exempt status.

I didn’t go into detail of HOW to self declare this tax exempt status. This blog post explains the HOW.

Background:

Organizations that are eligible to self declare 501 tax exempt status do not have to apply for tax exempt status with the IRS. So no Form 1023/1023-EZ or 1024 needs to be filed! This saves you time and money! Hooray.

But self-declared tax exempt organizations must still maintain that tax exempt status by filing an annual report with the IRS. This annual filing is Form 990/990-EZ or 990-N.

 

If you are a 501c7 social club:

This status is common for homeschool support groups that focus on social activities and clubs rather than on educational activities

Self declare tax exempt status

Since you have not applied for 501(c)(7) status  (you can “self declare” 501(c)(7) status and don’t have to file the paperwork), you are not in the IRS database (yet) so you will not be able to file the 990-Ns. You will need to call the IRS Customer Account Services at 1-877-829-5500 and be added to their Exempt Organization database so you can begin filing the Form 990-Ns.

It typically takes 6 weeks after you call to be added to the IRS database.

Tips when calling the IRS

Say something like this,

“We’re a brand new 501(c)(7) Social Club and we needed to get added to the IRS exempt organization database so we can start filing our 990-Ns.”

 


If you are a 501c3 Educational Organization

This status is common for tiny homeschool groups including co-ops, tutorials, youth sports, music and arts organizations that focus on educational activities.

Your organization’s total gross revenues must be less than $5,000 per year to be eligible to self declare 501(c)(3) tax exempt status.* 501(c)(7) social clubs mentioned above do not have that $5,000/year limitation. They can have gross revenues of more than $5,000/year and still self-declare tax exempt status.

Read about the difference between 501(c)(7) Social clubs and 501c3 organizations.

Since you have not applied for 501(c)(3) status, you are not in the IRS database (yet) so you will not be able to file the 990-Ns. You will need to call the IRS Customer Account Services at 1-877-829-5500 and be added to their Exempt Organization database so you can begin filing the Form 990-Ns.

Tips when calling the IRS

Say this: “We’re a small 501(c)(3) educational organization with revenues of less than $5,000 per year. We understand we can self-declare our 501(c)(3) tax exempt status. We’d like to get added to the IRS exempt organization database so we can start filing our 990-Ns.”

 

*Note that only 501(c)(3) organizations with less than $5,000 annual gross revenues can “self-declare” their tax exempt status. 501(c)(3) s with more than $5,000/year in revenues must apply for501(c)(3) status using Form 1023 or the new, shorter Form 1023-EZ.


For both  501c7 Social Clubs and 501c3 Educational Organizations

During your call with the IRS, they will ask for your EIN and organization’s name, address, and probably a contact name. Have all that ready before you call.

They may also ask what date your fiscal year ends. Many support groups operate on a calendar year, but some operate on a school year with a year end of June 30 or July 31. You get to pick it!

They may ask if you have “organizing documents.” They mean bylaws, Articles of Association (or Articles of Incorporation). So tell them if you have bylaws or Articles of Association/Articles of Incorporation. Samples can be found here.

Call the IRS early in the morning. They open at 8 am local time and you can usually get through pretty quickly of you call then. Record the date you call, the IRS employee name and their identification number.

Don’t forget to the the 990-N every year!

Be sure you go online to file the Form 990-N anytime after your fiscal year ends and before its due date which is 4 1/2 months after the end of your fiscal year.

So if you operate on a calendar year, the 990-N is due May 15. If your fiscal year ends June 30, the From 990-N is due November 15 every year. File it at IRS.gov/990n

 

Have more questions about your homeschool organization’s tax exempt status? My book, The IRS and Your Homeschool Organization would be a big help.

 

 

 

 

If your 501(c)(3) educational organization grows and has more than $5,000 in revenues per year, it’s time to officially apply for 501(c)(3) tax exempt status.

This webinar 501c3 Application for Homeschool Nonprofits will explain how to do that.

 

Carol Topp, CPA

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Military Homeschool Families: An Asset to Your Group

A military family can be an asset to your homeschool group. Find out how from homeschool leader Melissa Robb and School Liaison Officer at Newport, RI Naval Base, Pamela Martin. These two ladies have a heart for helping homeschool military families and you’ll learn the benefits of inviting them into your group.

 

 

Create a Nonprofit Organization for Your Homeschool Community

A pre-recorded webinar for homeschool groups that covers:

  • The difference between a business and a nonprofit
  • What are the advantages and disadvantages of being a nonprofit
  • Forming a board: who can be one it, what do they do, etc.
  • Creating bylaws
  • Drafting a budget
  • Setting up a bank account
  • Forming a nonprofit corporation in your state
  • The timeline to get this all done
  • The expense to accomplish this

For more information visit Homeschoolcpa.com/CreateNP

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Apply for 501c3 Tax Exempt status on your own (this webinar will show you how!)

 

I’ve helped over 90 small nonprofit organizations apply for 501c3 status using IRS Form 1023-EZ.None have ever been denied by the IRS.

Would you like to know what I know?

I share my experience, tips, and even a few secrets that I only share with my clients in a webinar

501c3 Application for Homeschool Nonprofits 

This webinar is for:

  • People who want to DIY (Do It Yourself) in applying for 501c3 tax exempt status but need an experienced expert to teach them how.
  • New homeschool groups formed as nonprofit organizations that want tax exempt status
  • Homeschool groups that have been around a while but never applied for 501c3 tax exempt status
  • A homeschool business that wants to convert to be a nonprofit and get tax exempt status
  • Homeschool leaders who have heard about tax exempt status, but don’t understand the steps to take.

You will learn:

  • The difference between nonprofit and tax exempt status. They are not the same thing!
  • The pros and cons of tax exempt status
  • How you could avoid applying at all, yet still get all the advantages of 501c3 status
  • What is needed before applying for tax exempt status
  • The cost and steps to take
  • An explanation of the IRS Form 1023-EZ line-by-line. This will be the crux of the webinar and will help you prepare your own 501c3 application!
  • Tips on filing the IRS Form 1023-EZ from Carol’s experience of filing over 90 applications!

After the webinar you will be equipped to file on your own the IRS Form 1023-EZ, saving you hundreds of dollars for professional help.

The cost is $25. 

What  you get for $25:

  • Webinar recording. The webinar lasts approximately 1.75 hours.
  • Handout of webinar slides
  • ebook The IRS and Your Homeschool Organization by Carol Topp, CPA
  • Sample Form 1023-EZ for your reference
  • BONUS: If you feel you need additional assistance, we can arrange a phone consultation. I will discount my hourly rate from $85 to $60/hour, so this webinar pays for itself!

This is the second part of a 3-part webinar series

The first webinar Create A Nonprofit for Your Homeschool Community is available now. I highly recommended to watch this webinar first, if you haven’t done so already!

The final webinar IRS and State Filings for Homeschool Nonprofits will air in August 2019.

 


 

Carol Topp, CPA

HomeschoolCPA.com

Military Families: How Homeschool Leaders Can Help

Homeschool leader Melissa Robb was never in the military, but she developed a heart for homeschool military families moving to her area. Listen ads she tells Carol Topp about how she helped military families with information, connections and friendship.

In this episode of the HomeschoolCPA podcast, Carol Topp will share:

  • How to welcome a military family moving to your area
  • The struggles that military homeschool families face
  • How homeschool leader Melissa Robb developed a heart for military families
  • What do homeschool military families need most
  • What time does it take to help military families
  • What can a homeschool leader to do help military families

 

 

In her webinar 501c3 Application for Homeschool Nonprofits Carol Topp, CPA will share her tips and secrets from preparing over 150 applications for 501c3 tax exempt status

You will learn:

  • What is needed before applying for tax exempt status
  • The cost and steps to take
  • An explanation of the IRS Form 1023-EZ line-by-line. This will be the crux of the webinar
  • Tips on filing the IRS Form 1023-EZ
  • What filings may be required by your state (in addition to the IRS)
  • How you could avoid applying at all, yet still get all the advantages of 501c3 status

After the webinar you will be equipped to file on your own the IRS Form 1023-EZ, saving you hundreds of dollars for professional help.

More information at HomeschoolCPA.com/501c3APP

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Webinar: 501c3 Application for Homeschool Nonprofits

Have you heard that applying for 501c3 tax exempt status is difficult, time consuming and expensive? Well, it can be, so Carol Topp, CPA the HomeschoolCPA wants to make applying for 501c3 tax exempt status a lot easier for you!

So easy, you can do it yourself!

In this webinar 501c3 Application for Homeschool Nonprofits Carol shares her tips and secrets to apply for 501c3 tax exempt status with the IRS.

You will learn:

  • The difference between nonprofit and tax exempt status. They are not the same thing!
  • The different types of 501c organizations there are and which are most common for homeschool groups
  • The pros and cons of tax exempt status
  • How you could avoid applying at all, yet still get all the advantages of 501c3 status
  • What is needed before applying for tax exempt status
  • The cost and steps to take
  • An explanation of the IRS Form 1023-EZ line-by-line. This is the crux of the webinar and will help you prepare your own 501c3 application!
  • Tips on filing the IRS Form 1023-EZ from Carol’s experience of filing over 90 applications!
  • What filings may be required by your state (in addition to the IRS)

After the webinar you will be equipped to file on your own the IRS Form 1023-EZ, saving you hundreds of dollars for professional help.

 

Watch a preview:

The cost is $25.  The webinar runs approximately 1.75 hours.

What  you get for $25:

  • Access to the webinar recording
  • Handout of webinar slides
  • Sample Form 1023-EZ for your reference
  • ebook The IRS and Your Homeschool Organization by Carol Topp, CPA
  • BONUS: If you feel you need additional assistance, I will discount my hourly rate from $85 to $60/hour if you have purchased the webinar.

This is the second part of a 3-part webinar series

The first webinar is Create A Nonprofit for Your Homeschool Community. I highly recommended to watch this webinar first, if you haven’t done so already!

The final webinar IRS and State Filings for Homeschool Nonprofits will air in August 2019.

 


Carol Topp, CPA

HomeschoolCPA.com

How to wrap up your year as treasurer

It’s near the end of the year for many homeschool nonprofit organizations.

Here’s a list of tasks for a treasurer to do to finish the year:

  • Enter all transactions and check to ensure that your bank reconciliations are up-to-date for the entire year.
  • Fill out the IRS 990/990EZ or 990N if required. As the Treasurer, you are the most appropriate person to fill out this annual IRS form.
  • Give a year end summary to your board. My free webinar Financial Reports for Homeschool Nonprofits will show you good, bad and ugly financial reports.
  • Make a list of any items that you or the next treasurer needs to address that might be out of the norm like outstanding checks.
  • Change authorized banking signatures, if needed. Change names on state registrations and the IRS EIN too. How to change responsible party name on EIN.
  • Put together a list of important deadlines like insurance renewal, Form 990 dues date, state registration deadlines, etc. If you are the next year’s treasurer, put these dates on your calendar.
  • Review the next year’s budget with the incoming treasurer. Don’t have a budget? This should help How do I create a budget for my homeschool group?
  • Train the incoming treasurer. My Board Manual  can serve as a board training guide.

My book Money Management in a Homeschool Organization is a guide for treasurers of homeschool organizations. If you don’t have a copy, buy one today. Maybe you’ll say like Mara, a homeschool treasurer in Washington did, “I was also pleased to learn that we are doing many things right!”

 

Carol Topp, CPA