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IRS AND DOL REPORTING REQUIREMENTS: BE AWARE OF ALL THE RECENT CHANGES! PANEL DISCUSSION ON UNION FILINGS OF GOVERNMENT

IRS AND DOL REPORTING REQUIREMENTS: BE AWARE OF ALL THE RECENT CHANGES! PANEL DISCUSSION ON UNION FILINGS OF GOVERNMENTAL REPORTS Presented by the AFSCME Auditing Department. Program Presenters. AFSCME Auditors: - Tom Kulikosky, CIA, CPA Assistant Director, Auditing

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IRS AND DOL REPORTING REQUIREMENTS: BE AWARE OF ALL THE RECENT CHANGES! PANEL DISCUSSION ON UNION FILINGS OF GOVERNMENT

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  1. IRS AND DOL REPORTING REQUIREMENTS: BE AWARE OF ALL THE RECENT CHANGES! PANEL DISCUSSION ON UNION FILINGS OF GOVERNMENTAL REPORTS Presented by the AFSCME Auditing Department

  2. Program Presenters AFSCME Auditors: - Tom Kulikosky, CIA, CPA Assistant Director, Auditing - William Del Pino, CPA - Cathy German, CPA - Karen Tyler Special Guest - Dave Dorsey, CPA Partner, Bond Beebe CPAs AFSCME External Auditor

  3. Governmental Reporting Today, we will discuss the Following Reports that Your Affiliate May be Required to File: Due Date -IRS Payroll Forms 941, 940 & W-2Various -IRS Form 990, 990EZ and 990NMay 15th * -IRS Form 1120-POLMarch 15th * -DOL Form LM-2/3/4 March 3st * * Calendar-Year Filers

  4. Governmental Reporting - Payroll • If your affiliate pays officer allowances or stipends,reimburses dues, makes lost time payments or has anyother taxable payments to officers or employees, thefollowing IRS forms must be filed: • IRS Form W-2, IRS Form W-3, IRS Form W-4 • IRS Form 941 filed quarterly • IRS Form 940 filed annually USE OF A PAYROLL SERVICE (ADP, PAYCHEX) IS RECOMMENDED

  5. IRS Form 990, 990-EZ, and 990N For Tax Year 2009 Form 990 - File if your affiliate meets these requirements - Gross Receipts are $500,000 or above OR - Total Assets are $1,250,000 and above Form 990-EZ - File if your affiliate meets BOTH of these requirements - Gross Receipts are $25,001 to $499,999 AND - Total Assets are below $1,250,000 Form 990-N - File if your affiliate’s annual Gross Receipts are $25,000 or less regardless of your affiliate’s Total Assets ALL FORMS DUE by MAY 15th FOR CALENDAR YEAR FILERS THERE ARE SUBSTANTIAL PENALTIES FOR LATE FILING

  6. IRS Form 990, 990-EZ and 990N For Tax Year 2010 Form 990 - File if your affiliate meets these requirements - Gross Receipts are $200,000 and above OR - Total Assets are $500,000 and above Form 990-EZ - File if your affiliate meets BOTH of these requirements - Gross Receipts are $50,001 to $199,999 AND - Total Assets are below $500,000 Form 990-N - File if your affiliate’s annual Gross Receipts are $50,000 or less regardless of your affiliate’s Total Assets ALL FORMS DUE by MAY 15th FOR CALENDAR YEAR FILERS THERE ARE SUBSTANTIAL PENALTIES FOR LATE FILING

  7. IRS Form 990N All Locals who do not otherwise file a 990 or 990-EZ Form regardless of size are now required to file a 990-N Form • “e-Postcard” Format on the Internet • Requires EIN Number, name of principal officer and address of local union • an email address is also required • Due by May 15th for Calendar-Year Filers

  8. IRS Form 990, 990-EZ and 990-N • The IRS can revoke tax exemption status if a Local does not file the Form 990-N for three straight years • There are monetary penalties for late filing of Forms 990 and 990-EZ • Affiliates who are required to File IRS Form 990’s should use a CPA or Accountant, Affiliates filing 990-EZ’s should also consider professional assistance • The International sends out yearly mailings regarding IRS Form 990 Filing Requirements - Refer to the Mailings • Contact the Auditing Department of AFSCME if you have further questions or problems completing the Forms

  9. IRS FORM 1120-POL The IRS 1120-POL is an income tax return for locals who BOTH make political contributions over $100 AND have interest income over $100 per year Affiliates required to file 1120-POL will pay Income Taxes to the IRS A separate Segregated PAC Fund may exempt you from filing the Form 1120-POL The 1120-POL filing deadline is March 15th for calendar year filers. Regulations for political contributions are complicated and vary from state to state-States and Localities have their own filing requirements. Seek Professional Assistance to ensure compliance with all applicable federal, state and local laws

  10. LM (DOL) REPORTS The Labor-Management Reporting & Disclosure Act of 1959 (LMDRA) as amended requires that certain reports be filed with the Department of Labor by labor organizations that represent employees who work in private industry.

  11. LM-1 REPORTS LM-1 - Labor Organization Information Report - an initial form that must be filed with the DOL when a labor organization represents private sector employees An amended LM-1 must be filed with the DOL when there are certain changes to a labor organization’s constitution and bylaws or practices and procedures

  12. LM REPORTS Which LM Report Does your Affiliate File? LM-2, if total annual receipts are $250,000 or more LM-3, if total annual receipts are $10,000 or more, but less than $250,000 LM-4, if total annual receipts are less than $10,000

  13. LM-2 REPORTS LM-2 is the most detailed report requiring completion of 21 informational items, 47 financial items and 20 supporting schedules LM-2 requires that disbursements be reported by functional categories LM-2 reports must be filed electronically with digital signatures of the officers Reports are due to the DOL 90 days from the end of the fiscal year Get a CPA or accountant to assist you in filing this LM Report

  14. LM-3 and LM-4 REPORTS LM-3 and LM-4 are less detailed but still require significant amounts of financial information LM-3 and LM-4 reports can be filed either electronically or a signed paper copy can be sent to the Department of Labor The signatures of the President and Treasurer of the union are required Reports are due to the DOL 90 days from the end of the fiscal year Consider a CPA or accountant to assist you in filing these LM Reports

  15. Public Disclosure • The Forms 990 and LM are Public Documents Open to Inspection • Ensure that you maintain copies of the filed forms in a location that can be readily accessed if needed • Any filed Department of Labor LM forms can also be downloaded from the DOL website.

  16. Secretary-Treasurer’s Training This class covers only a small portion of what you will learn by attending one of our regular Secretary-Treasurer TrainingWorkshops Secretary-Treasurer’s Training is highly recommended for allunion officers Contact your Council or (Unaffiliated) Local to have them schedule training in your Area

  17. For More Information AFSCME Auditing Department  202-429-5032  www.afscme.org AFSCME Financial Standards Code web page: http://www.afscme.org/publications/1717.cfm

  18. Questions & Answers

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