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I am the facilitator of a medical fund set help to help a coworker

whose daughter had a serious...
I am the facilitator of a medical fund set help to help a coworker whose daughter had a serious medical condition. The treatments were successful and most of the medical costs were covered by insurance.

I want to close the bank account and need to know what can be done with the balance of funds and what if any requirements are there from the IRS.
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Answered in 13 minutes by:
7/2/2010
Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
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Hello JA Customer,

 

The IRS would not be an issue here as the funds in that account are not taxable. They were given as non deductible donations by people who wanted to help your co-workers daughter, so no tax is due on the funds.

 

The ethical thing to do would be to give the rest of the money in that account to the person who the donations were intended for, as they may still have more medical bills in the future related to this condition, or may have other expenses to pay. And the donors of the money intended for the funds to be used by that person. The other thing you could do is refund the money to the donors based on the percentage they originally contributed of the total funds collected.

 

If this was helpful please press the Accept button. It is the only way we receive any credit for helping with these questions.

 

Thank you JA Customer

 

 

Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
Verified
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Satisfied Customers: 9,783
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Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad

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