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adamousacom, Retired CPA
Category: Business Law
Satisfied Customers: 2884
Experience:  As a Retired CPA I've dealt with business law for decades.
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A private club (509(c)(7) rewards work done by officers and

Customer Question

A private club (509(c)(7) rewards work done by officers and governors during their terms of office by waiving their dues for life, calling them "Honorary" members. The aggregate cost of the dues waived is $66,000 annually, or about $3,300 for each of the 20 persons involved, out of a membership of 450.
In the absence of this practice the "Honorary" members would pay the same dues as other members. Does this imputed compensation for services need to be declared
by the club and/or the recipients?
Submitted: 2 years ago.
Category: Business Law
Expert:  adamousacom replied 2 years ago.
The question is a simple yes or no question. The answer is no.
There are many organizations that do this (Rotary for example) and none that I know of declare this as imputed compensation as declared by either the member or the club.
Expert:  adamousacom replied 2 years ago.
I've offered you a call to discuss this taxation issue in greater detail. All you need do is accept. If not we can text back and forth.