While booster clubs enjoy some tax benefits, that doesn’t mean they are immune from filing paperwork with the IRS.
Between fundraising, managing day-to-day operations, and keeping track of expenses, it can be easy to forget about other booster club and tax requirements. Here’s what to do if you forgot to file and how you can avoid it in the future:
What to Do When You Realize You Didn’t File Taxes
No one is perfect, and every booster club makes mistakes. If you realized you didn’t file your booster club taxes, don’t panic. There is usually a way to correct the error and avoid any kind of serious penalty. Most importantly, address the problem and be transparent with the club.
Don’t Ignore It
The worst thing you can do when you realize you didn’t file taxes is to ignore it. It can be tempting to just file away the paperwork and hope for the best, but it won’t work out in your favor.
Your state tax controller and the IRS are very good at finding organizations that did not file, and you don’t want to end up with a big fine when they realize you didn’t file. The best thing you can do is contact the relevant tax offices and see what you can do to rectify the situation.
Be Transparent with the Club
Forgetting to file taxes may be embarrassing to admit, but it’s important that you are transparent with the other people involved in the club. They donate their time and money, so they deserve to know the full picture of the club's financial state.
Do your best to explain the situation and bring a solution to the table. In the event that you do end up with fines for failure to file, the last thing you want to do is surprise your fellow club members with a bill.
How to Avoid Tax Problems in the Future
If you forgot to file taxes, turn it into a learning opportunity. Take action to prevent the same thing from happening next year. Familiarize yourself with the filing requirements, and consider utilizing a filing service. Using booster club software such as BoosterHub can provide handy guardrails for your officers as they conduct business throughout the year.
Familiarize Yourself with Booster Club Tax Filing Requirements
Booster club tax filing requirements can actually be pretty complicated, but familiarizing yourself with the basics can go a long way in preventing mistakes in the future. At a bare minimum, identify the tax filing deadlines and put them on a calendar so you will be reminded well in advance.
You should also take time during the year to ensure you have the right tools to produce the information you need to file.
Use a Filing Service
While your club may be hesitant to take on another expense, utilizing a filing service like Parentbooster USA Inc. is worth every penny. Parentbooster USA is a one-of-a-kind service that handles all of the IRS and state paperwork for booster clubs.
Founded by an experienced tax law attorney, the organization ensures that you’ll have total peace of mind when it comes to your club’s taxes.
