Filling out IRS form 8718 for tax exemption?

Question

What if I check the less than $10K per year and py $300 and I receive more than $10k? Is there a fine?

What is the penalty if I check the under $10K.. but then unknowingly planned - receive larger donations in excess of $10k?

Answer 1

It is a matter of degree. If, for instance receipts were:
Year 1 $9,000
Year 2 $9,500
Year 3 $10,500
Year 4 $12,000
You might get away with it.

If, however, it is clear that receipts were always going to average over $10,000 you can expect to be audited at some point. That, especially for a non-profit, can be more problematic than paying the additional fee and penalty.

Frankly, anyone filling out this form should have a CPA in public practice. I strongly advise contacting your professional adviser.

Answer 2

dont do it!