closing a club
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closing a club My investment club is closing after many years. We have 12 stocks and 8 are about even and 4 are down significantly because of current market conditions. Is there a preferred way to discontinue operations? Thanks, Audie Brewton Hi Audie, We are sorry to hear that. Here is a link which describes the disbanding process you should use: https://www.bivio.com/hp/disbanding.html Feel free to email us at support@bivio.com if you need any additional assistance along the way. Laurie Frederiksen www.bivio.com The disbanding instructions call for withdrawing all members (assumedly including the club treasurer), then preparing the final tax return. If the treasurer is withdrawn, aren't his/her access priveleges to Bivio similarly withdrawn? If so, how could the treasurer get back in to prepare the final return? Also, Step 5 says, if the year isn't over, you'll be filing a partial year return. Would one also prepare a final return early the next year? Laurie Frederiksen wrote: > Hi Audie, > > We are sorry to hear that. Here is a link which describes the > disbanding process you should use: > > https://www.bivio.com/hp/disbanding.html > > Feel free to email us at support@bivio.com if you need any additional > assistance along the way. > > Laurie Frederiksen > www.bivio.com Even after the treasurer is withdrawn, they still will have access to complete the final return if the club subscription is current. The partial year return is the final return. It is filed by the 15th day of the 4th month following disbanding. There will not be a need to file another return during regular tax season. Laurie Frederiksen www.bivio.com I'm a bit puzzled. At the end of the year, much ado is made about waiting to file the club's tax return until the final 1099 is received from the broker. Yet here, the requirement is to file in mid-year. Is this yet another example of what my tax accounting professor in college said: "It doesn't have to be logical. It's an IRS regulation"? Laurie Frederiksen wrote: > Even after the treasurer is withdrawn, they still will have access to complete > the final return if the club subscription is current. > > The partial year return is the final return. It is filed by the 15th day of the 4th month > following disbanding. There will not be a need to file another return during regular tax > season. > > Laurie Frederiksen > www.bivio.com That's correct. The reason for waiting (in a normal year) until the final 1099 is received is to avoid the hassle of having your members file amended personal returns. The IRS is more than willing to have you file an amended return in early 2011 if your short-year final 2010 return is wrong. They are more concerned about getting the filing done while there is still someone around to prepare the return.
Ira Smilovitz
Join me at InvestEd 2010 Investor Education at Its BestTM
Baltimore, MD August 6 - 8, 2010 http://www.investor-education2010.org/ In a message dated 06/07/10 15:06:41 Eastern Daylight Time, cic@bivio.com writes:
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