Tax Liability of a Small, Public Service Organization
A small baseball league formed in a Texas community, and it has been in operation for a number of years. Members pay dues, and the organization manages the dues, buying baseballs, uniforms, and the like. Everybody who works for the organization is a volunteer.
A new group of people is taking over the organization and they are concerned that the organization has never filed a tax return, and have never paid any taxes. How much money does the organization have to take in before it has to file a tax return, and is the organization liable for back taxes?
Re: Tax Liability of a Small, Public Service Organization
The organization should get help from a tax lawyer to straighten out any past issues, and to form as a nonprofit organization, perhaps as a tax-exempt charitable or membership organization. This sounds like it has gone past the point of being a do-it-yourself project.