Tax Law (Questions About Taxes)/Tax for Not for Profit


My husband and I applied for, and were granted, an EIN number for my daughter's skating team of which we are the team managers.  The application was for a 'not for profit', community sports team.  We were given the EIN just over two years ago.  The EIN was used to open a bank account for the team.  The account is used to deposit dues collected from the team members which are then used to pay for coaching, practice facilities, competitions, etc.  Deposits to the account total less than $12,000 a year.  

Do we need to file with the IRS?  My husband assures me we don't.  I have also been told that if the IRS needed us to file they would have sent us a letter about not filing last year.  

Also, should we have given the team coach a 1099?  She is self employed and files her taxes as such.  

Thank you for your assistance with helping to better understand my responsibilities.


Thanks for your question.

You need to take one more step. You are not an IRS tax-exempt organization until you have applied for and received an exemption. This is done through completion of Form 1023EZ. There is a $400 filing fee for this.  However, if you are not incorporated, you are considered an unincorporated association and still should apply if you have over $5,000 of revenue.

Once approved you must file a "postcard" electronic Form 990-N as long as your revenues are less than $50,000 a year.  If you paid the coach more than $600 she should receive a 1099-MISC.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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