On Wed, May 6, 2009 at 7:04 AM, Urban Bike Project Wilmington, DE urbanbikeproject@gmail.com wrote:
Is it enough to keep track of who we paid and where the money went and put the onus on our mechanics to report it on their personal tax return?
Yes, pretty much. You should be able to fly under the radar on this.
Your volunteers are contractors, not employees.
You will report the annual payment to each contractor on a Form 1099. Copies are given to the contractor and the tax agency. However, I'm pretty sure you can skip this step for contractors who were paid less than $600. Consult a professional in your area to be sure.
Those 2008 Form 1099s were due earlier this year. I missed the deadline. Our accountant advised me to NOT submit the forms late, as this will cause the IRS to fine us now. In case of an audit, they might catch and fine us the same amount later. Our defense: "Oops. I thought those had been filed."
I hope the IRS doesn't read ThinkTank.
Head's up, everybody! Our federal Form 990 taxes are due May 15. Yours may be too. It's helpful to keep up on this stuff if, say, you'd like to receive grant money.
Dave Bourgeois Treasurer, Bici Centro of Santa Barbara