How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Dr. Fiona Chen Your Own Question
Dr. Fiona Chen
Dr. Fiona Chen, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 355
Experience:  Former IRS Revenue Agent
72280797
Type Your Tax Question Here...
Dr. Fiona Chen is online now
A new question is answered every 9 seconds

CAN A TRUSTEE OR CONSULTANT FOR A 501 (C)(3) ORGANIZATION

Customer Question

CAN A TRUSTEE OR CONSULTANT FOR A 501 (C)(3) ORGANIZATION DIRECT THE FEE TO ANOTHER 501(C)(3) ORGANIZATION WITHOUT TAX CONSEQUENCES TO THE CONSULTANT?
Submitted: 2 months ago.
Category: Tax
Expert:  Dr. Fiona Chen replied 2 months ago.

Dear Customer,

There are several aspects of it.

1) It is less of a tax law issue. It is your NM trust's Board's Decision. If they are unwilling to participate in the pre-arrangement for the donation to avoid the construction receipt issue, there is nothing you can do about it. The money is transferred from them to the other organization. If they are not willing to do it, there is no deal.

2) In terms of tax issue, there is a simple issue that there is unpaid payroll taxes. The money is to reimburse one's labor, work. It also depends on the amount and frequency. For an occasional, incidental payment, like speech engagement once a while, it may not be an issue. The speech fee often can be interpreted as a honorable, speech fee gift and not really hourly fees for labor.

3) The team of expert you met before may not have dealt with the payroll tax issue. They could be conducting an income tax examination. Or they were dealing with a smaller amount. They could have looked at your tax return and felt that the first page adding and the Schedule A deduction of donation will have the same income tax result. We cannot speak for them.

These discussions just to bounce ideas with you. Please feel free to follow up.

Regards,

Fiona Chen, MPA, Ph.D., CPA, ABV, CFF, CITP