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Manage a checking account properly for your homeschool group

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We have always had a checking account under a parent’s name. We were adding a name to our account this year when the bank informed us we can no longer do this and we need to have our own Tax ID number. Will we need to file returns with the IRS if we get a tax ID number?

I strongly discourage using a parent’s name on an organization’s checking account. The organization should have a checking account in its own name and use an Employer Identification Number (EIN), not an individual’s social security number.

Getting an EIN does mean your organization will need to do some annual reporting to the IRS.

It didn’t used to be this way.

Homeschool groups used to be able to get an EIN, open a checking account, and never have to file any annual reports with the IRS. All that changed in 2006 when Congress passed a rule saying EVERY tax exempt organization had to file an annual information return with the IRS, Form 990, 990-EZ or 990-N with the IRS each year.

Read my 990-N FAQ page for details.

 

IRS and Your Homeschool Org cover

My book, The IRS and Your Homeschool Organization, explains the IRS required filings for your homeschool group.

You can also check out the webinar I created:

I hope that helps!

Carol Topp, CPA

HomeschoolCPA.com

The post Manage a checking account properly for your homeschool group first appeared on HomeschoolCPA.com.

The post Manage a checking account properly for your homeschool group appeared first on HomeschoolCPA.com.


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