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Ask Dr. Fiona Chen Your Own Question
Dr. Fiona Chen
Dr. Fiona Chen, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 440
Experience:  Former IRS Revenue Agent
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1) LaSertoma International, a non profit organization I

Customer Question

1) LaSertoma International, a non profit organization I belong to, was chartered in Kansas City: now that headquarters have been moved to Ohio, why do we have to keep a bank lock box (or anything else) in Kansas City to maintain our charter status? Or do we?
2) We were told we must spend x amount of dollars out of a bequeathed fund intended for training each year. How much exactly must we spend?
Thank you!
***** ********
Submitted: 6 months ago.
Category: Tax
Expert:  Dr. Fiona Chen replied 6 months ago.

Dear Customer,

Would you please tell me from where you got the instruction for 1) and 2)? Are they from the federal, State, Local regulatory or taxation authorities, your inside accountant and auditor, or outside auditor?

Thank you.

Regards,

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

Customer: replied 6 months ago.
from the Federal IRS. Our International Treasurer informed us.
Expert:  Dr. Fiona Chen replied 6 months ago.

Dear Customer,

Let me think about this and will get back to you, soon.

You first need to get a copy of that IRS letter from your headquarter. It sounds like the IRS Tax Exempt and Governmental Entity Division. Their rules and regulation are like thousands of them. When they send you a letter, it is very detailed with cited laws, etc. We have to follow the instruction in order to remain the tax exempt status. We cannot a sort of following the interpretation of the letter. It is suggested that you get a copy of the original letter to study it and understand it first hand. You are the one in the U.S. and not your headquarter. Also, maybe you are authorized by your organization to contact the IRS directly. For a directive letter such as this, usually, the contact examiner's name and telephone number is ***** the right-hand up corner. You can call in to verify information. They are very much willing to help the taxpayer. TEGE is not in the business to take taxpayer's tax exempt status away. The examiner will be very attentive in communicating with you.

I wonder why the letter is sent to your headquarter and not you.

Regards,

Fiona

Customer: replied 6 months ago.
Our Treasurer has the letter in Texas. I will have her bring it to our Board meeting next week and she can follow up with the IRS for free, as you have stated. I am a Past Int'l President of the Organization, not the Treasurer. Thanks for your help, albeit, my questions were not answered, so I will stop the payment all except for the $5.00.
Linda
Expert:  Dr. Fiona Chen replied 6 months ago.

Dear Customer,

I am still in the process of thinking the questions. We are not stopped yet.

1) LaSertoma International, a non profit organization I belong to, was chartered in Kansas City: now that headquarters have been moved to Ohio, why do we have to keep a bank lock box (or anything else) in Kansas City to maintain our charter status? Or do we?

Expert:  Dr. Fiona Chen replied 6 months ago.

Dear Customer,

Things take time. Communicating with the IRS will take time. Give me some time to think. I am still on the website to understand your organization and try to think whey the IRS may ask you the requirement.

If you want to, you can ask customer services to withdraw your question, otherwise, I am still thinking about this question. I am still in question one and have not gone to question 2 yet.

Regards,

Fiona