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IRS Compliance

IRS Compliance

Teams that are able to funnel all of their funds through their school or through another hockey club (ie: Summit Youth Hockey or similar) are under the tax umbrella of that organization, and therefore do NOT need to take the following steps.
 
ALL OTHER TEAMS need to complete the following in order to be in compliance with the IRS and State of Colorado.  JV and V are considered one “team”, so JV teams should be included with their “parent” varsity team.

Step One - INCORPORATE

 

  1. Complete Articles of Incorporation.
    • Instructions and a sample form can be found on the side bar to the right.  The form itself must be filed electronically.
    • Click here to access the CO Secretary of State site and complete your form.
    • To replace lost or missing Articles of Incorporation, contact the Colorado Secretary of State’s office at 303-894-2200.
  2. Submit the completed electronic application to the Colorado Secretary of State.
    • There is a $50 fee to do this.
  3. Send a copy of your Articles of Incorporation to the league (Anda) and keep a copy in a safe place.

Step Two - OBTAIN AN EIN

 

  1. Apply online.  
    • Instructions and a sample form can be found on the right side of this page.
    • There is no charge to apply.
    • Once you have your EIN, it can be used to open a team bank account and file for tax exempt status.
  2. Fill out form SS22-B if you would like to change the “responsible party” originally listed.   
  3. Teams should keep the same EIN for the duration of the organization.  The EIN is tied to the entity, not the person originally obtaining the number.

Step Three - APPLY FOR TAX EXEMPT STATUS UNDER ONE OF THE TWO OPTIONS BELOW:

 

501(c) 3  ($275)

There is a new, cheaper, shorter application process for small not for profits: the 1023EZ form.  This is actually easier than applying for the 501c7.

  1. You will need the following:
    • Articles of Incorporation.
    • EIN.
  2. Review the eligibility requirements (all the HPHL clubs should be eligible) and then complete form 1023EZ.
  3. Eligibility requirements and instructions to assist with filling out the form can be found on the right side of this page.
  4. File your application electronically by going to www.irs.gov/form1023 or www.pay.gov . You will also need to pay online through www.pay.gov.
  5. Send a copy of your completed forms to HPHL (Anda).  HPHL will then send you a check to cover the application fee.
  6. Send a copy of the approval to HPHL (Anda) and keep your copy in a safe place.

501 (c) 7  ($600)

  1. You will need the following:
    • Articles of incorporation.
    • EIN.
    • Your bylaws (not HPHL bylaws).  You can also check that they are not done yet.
  2. Complete forms 1024 and 8718 (this one is mostly instructions, but does have the filing address on it).  Both form 1024 and form 8718 can be found on the right side of this page. 
  3. Instructions to assist in filling out the forms are also on the right side of this page.
  4. Send your completed forms to HPHL (Anda).  HPHL will then send you a check to cover the application fee.
  5. Mail your application and check to the IRS. 
  6. Send a copy of the approval to HPHL (Anda) and keep your copy in a safe place.

Step Four - ANNUAL FILING

 

You will need to file three (3) yearly forms.
 
1. A 990N with the IRS.
  • Due 4 1/2 months after the end of your fiscal year.  See instructions, with due date calendar included, in right side bar.
  • No charge to file.
  • Click here for more information.
  • Click here to file the 990-N.
2. A Registration Renewal with the State of Colorado.
  • Due at the same time as the 990N - 4 1/2 months after the end of your fiscal year.
  • $10 filing fee.
  • Click here for more information and instructions.
  • Click here to file.
3. A Periodic Report with the State of Colorado.
  • Due yearly during the month that your organization was incorporated.
  • $10 filing fee.
  • Click here for instructions and to file the Periodic Report.
 
Contact information to reflect a new manager can be updated at the time of filing each of these forms.
 
 

MISC. BANKING/TAX INFORMATION

 

1. From an IRS standpoint, teams are allowed to keep an unlimited reserve in their bank account from year to year.
 
2. Every time the team manager and or treasurer changes, be sure to update signing authority on the team bank account.  No need to open a new account.
 
3. 501 c3 or c7 designations do NOT exempt your team from sales tax.  
 
4. Donations to a 501c3 club can be deducted as charitable giving.
 
5. Donations to a 501c7 club can NOT be deducted as charitable giving.

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