libry just recd tax exempt ltr, but has had large inc for a few years

[schirallicpa]

I was asked a couple of years ago to help our local library bookkeep a capital expenditure that they had rec'd the funding thru the state.

Upon looking thru there books, I knew that they should have been filing a 990 annually, at least for the past few years. They didn't have a clue about the 990.

Come to find out, they had never registered with the IRS to get their exempt status either. So we filed the 1023.

So - we have received our letter that they are now approved for tax exempt status. How far back must we go filing old 990's? I'm not trusting that their bookkeeping is very accurate. Is there any break for this???? I hate to see to penalty notices that we will be receiving.

Any input?

[grandmabee]

How Long did it take you to get the approval letter? I have one this year too that they thought they were but when I tried to file the 990 postcard they could not find us. So I will also being filing for non profit status.

[jainen]

>>they had rec'd the funding thru the state... they should have been filing a 990 annually<<

They can't have it both ways, taking public money while keeping their books secret. They are subject to audit by the funding agency, and their tax returns must be open to public inspection. File ALL required returns to start the statute of limitations, like any other taxpayer.

[schirallicpa]

10-4

[schirallicpa]

the approval letter from the IRS took over a year, but that was because the Library could not find originating documents and we had to send in some other documents to suffice the IRS. But the exempt dept is a little on the slow side.