Annual tax filing and audit
Every undergraduate chapter is established with the Internal Revenue Service as a not-for-profit unincorporated association of men. While chapters are rarely liable for paying taxes, the IRS requires that chapters file a Form 990 each year to maintain good standing. Failure to file a tax return could result in fines, penalties or loss of tax exemption. In order to assist you with your tax filing, SigEp has partnered with Greekbill, which has a tax filing wizard module for your convenience. The fee to file a 990N is $29 and the 990EZ is $75. This service is an e-filing system that walks you through filing your 990 to ensure that everything is correct.
If your chapter has gross receipts in excess of $200,000.00 or over $500,000 in assets, you are required to file the full form 990. Greekbill has provided you with access to a CPA at a cost of $150.00 an hour to help you file your 990. To learn more, contact Greekbill's CPA.
Additionally, the vice president of finance and chapter president should work with the chapter’s Alumni and Volunteer Corporation to complete an AVC or external audit of the chapter finances every year. This safeguard ensures that all funds are properly managed, and allows the AVC to understand the financial priorities of the chapter.
If your chapter has lost its tax status, you will need to file IRS 1024 to be reinstated as a 501c7. You can find form 1024 on the IRS website. There is a one-time fee of $600.00 due to the IRS in order to process your paperwork.
SigEp has also partnered with Greekbill for 1024 support. Through this support, Greekbill will provide a certified public accountant to assist you with filing your paperwork. The average fee for this service is $1,500.00 payable to Greekbill in addition to the IRS fee of $600.00.