Leaders Link - The Institute Of Internal Auditors  

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PUBLISHED BY THE INSTITUE OF INTERNAL AUDITORS
January 2013
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It’s Tax Time!

Here is some important tax information for North American chapters based on location.

Tax Issues in the United States (Form 1099)

If payments in excess of $600 are paid to someone who is not considered an employee, your chapter must prepare Form 1099 Miscellaneous Income. The most common example is payment to speakers; it applies only to the fees paid, not for expenses. It applies only to individuals, so if you contract with The IIA for an On-site Chapter Seminar, you do not need to issue a 1099 to The IIA. The IIA is the contractor with the instructor and as such will issue the 1099 to the instructor. This form must be provided to the service provider and the IRS; due dates are January 31 to the service provider and February 28 to the IRS.   

Tax Issues in Canada

The Canada Revenue Agency defines a non-profit organization as a “club, society, or association that is organized and operated solely for: social welfare, civic improvement, pleasure or recreation, and any other purpose except profit.”

An information return (Form T1044) is required to be filed by a non-profit organization if one of the following conditions is met:

  1. The organization received or is entitled to receive taxable dividends, interest, rentals, or royalties totaling more than $10,000 in the fiscal period;
  2. The total assets of the organization were more than $200,000 at the end of the immediately preceding fiscal period; or
  3. An NPO return had to be filed for a previous fiscal period.

The fiscal period is the period for which the organization’s accounts have been prepared.

If a return is required to be filed, membership dues, fees, and assessments received are to be reported, as are gross sales and revenues from organization activities. [But it is not this revenue that generates the filing requirement.] 

Tax Issues in The Caribbean, Bermuda, and Guyana

Because each chapter is a separate entity, no attempt has been made here to interpret the individual tax laws and requirements. Each chapter should check with local taxing authorities.