CAI-NJ July 2019 Newest

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still be required to file an informational return with the IRS on an annual basis. As such, we recommend that club boards and officers carefully review their current tax status to ensure that they are in compliance with all federal and state filing requirements. As with income taxes, all clubs face the same obligations as any other incorporated entity when it comes to sales and use taxes. The club will be required to pay sales tax on any purchases, and will also be required to collect sales tax on the sale of any goods (i.e. bake sales, etc). These taxes come with quarterly and annual filing requirements. As with the income taxes, there is a sales and use tax exemption offered to qualifying clubs, who have successfully completed the application process. When signing up to be an officer or board member of an independent club, it will require the person to take on the responsibility of managing the money of others. It is an unfortunate fact, but it is not uncommon for mem- bers of a club to question the use of club assets. Any concerns can easily be put to rest by instituting a set of pro- cesses and controls to ensure that all assets are being managed responsi- bly. These recommendations include: 1. Assigning a bookkeeper to main- tain the financial records of the club. These records should include month bank reconciliations to ensure that the clubs cash accounts are in agreement with the financial reports. CONT I NU E S ON PAGE 46 Accusations of mismanagement:

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