Tax Question - We just started a cultural club to include fine arts, dance, music, etc. Our main purpose is sharing our love of the arts and encouraging one another. We will also become involved with the community. We will be sharing our talents, offering demos, exchanging ideas. We do not want to become a non-profit or file for an EIN. We do want to offer children's craft fairs, etc. We will have supply costs and advertising expenses. I feel that if we make money we have to file and pay taxes.
Many people in the group feel if we have garage sales or get donations we
don't have to report it. One lady further states that as long as we keep
less than $400 we don't have to report it. She further states that we could get a huge donation and as long as we spend it down right away for supplies and group items - making the account less than $400 we do not have to file.
Can a club or group make as much money as they want and not report it?
Is there a certain amount they can make and not report it? If we are making any money should we obtain our EIN and file yearly tax statements? Is it
true that as long as you don't keep $400 plus in your account you are clear?
Thank you for any help. We will have a meeting soon and I want to be able
to get the group straight on this and file necessary paperwork.
Many people in the group feel if we have garage sales or get donations we
don't have to report it. One lady further states that as long as we keep
less than $400 we don't have to report it. She further states that we could get a huge donation and as long as we spend it down right away for supplies and group items - making the account less than $400 we do not have to file.
Can a club or group make as much money as they want and not report it?
Is there a certain amount they can make and not report it? If we are making any money should we obtain our EIN and file yearly tax statements? Is it
true that as long as you don't keep $400 plus in your account you are clear?
Thank you for any help. We will have a meeting soon and I want to be able
to get the group straight on this and file necessary paperwork.
