Question re Tax ID Number for Cal. unincorporated nonprofit association
February 6, 2015 1:21 PM Subscribe
California has a law permitting nonprofit unincorporated associations to enjoy many of the benefits of incorporation without actually incorporating. I am a member of such a nonprofit association. We are now applying for EIN for banking purposes, and I have some questions.
I am filling out IRS SS-4 to get a tax ID number for use in banking for the nonprofit unincorporated association of which I am a member. The SS-4 asks for the name of the "responsible party," and also asks for the SSN (see 7a and 7b). If I write down my own SSN in line 7b, will that cause me any problems with Form 1099s? In other words, we get an ID number, we do our activity X, we get paid $500, there's a Form 1099 issued. It's not a huge amount annually, maybe $4,000 estimated on the high end. But I don't want the 1099 amount to be counted as income to me.
You are not my tax consultant or my lawyer.
I am filling out IRS SS-4 to get a tax ID number for use in banking for the nonprofit unincorporated association of which I am a member. The SS-4 asks for the name of the "responsible party," and also asks for the SSN (see 7a and 7b). If I write down my own SSN in line 7b, will that cause me any problems with Form 1099s? In other words, we get an ID number, we do our activity X, we get paid $500, there's a Form 1099 issued. It's not a huge amount annually, maybe $4,000 estimated on the high end. But I don't want the 1099 amount to be counted as income to me.
You are not my tax consultant or my lawyer.
BTW, this is a CPA question. Do you have one yet? Maybe that should be your first step.
posted by summerstorm at 1:41 PM on February 6, 2015
posted by summerstorm at 1:41 PM on February 6, 2015
Response by poster: You can't leave 7b blank -- you can't get an EIN without submitting an SSN or another tax number. It's not worth the money to hire someone -- I was mostly hoping someone else in a bowling league or whatever had gone through this before me. Otherwise, I will learn by doing.
posted by ClaudiaCenter at 1:46 PM on February 6, 2015
posted by ClaudiaCenter at 1:46 PM on February 6, 2015
IRS guidance on "responsible party:"
“responsible party” is the person who has a level of control over, or entitlement to, the funds or assets in the entity that, as a practical matter, enables the individual, directly or indirectly, to control, manage or direct the entity and the disposition of its funds and assets. The ability to fund the entity or the entitlement to the property of the entity alone, however, without any corresponding authority to control, manage, or direct the entity (such as in the case of a minor child beneficiary), does not cause the individual to be a responsible party.
Make sure to update it when that person changes (Form 8822-B).
posted by melissasaurus at 1:56 PM on February 6, 2015
“responsible party” is the person who has a level of control over, or entitlement to, the funds or assets in the entity that, as a practical matter, enables the individual, directly or indirectly, to control, manage or direct the entity and the disposition of its funds and assets. The ability to fund the entity or the entitlement to the property of the entity alone, however, without any corresponding authority to control, manage, or direct the entity (such as in the case of a minor child beneficiary), does not cause the individual to be a responsible party.
Make sure to update it when that person changes (Form 8822-B).
posted by melissasaurus at 1:56 PM on February 6, 2015
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posted by summerstorm at 1:40 PM on February 6, 2015