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New Sales Tax Exemption for Kansas Lions Clubs

New Sales Tax Exemption for Kansas Lions Clubs. K.S.A 79-3606 . The 2007 legislature passed a sales tax exemption for the International Association of Lion’s Clubs in Kansas. The legislation.

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New Sales Tax Exemption for Kansas Lions Clubs

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  1. New Sales Tax Exemption for Kansas Lions Clubs

  2. K.S.A 79-3606 • The 2007 legislature passed a sales tax exemption for the International Association of Lion’s Clubs in Kansas

  3. The legislation • Allows purchase of tangible personal property to be exempt from sales tax. Purchase of services would continue to be taxable. Additionally, sales made by or on behalf of the clubs would be exempt from tax. Indirect purchases, such as materials purchased by a contractor, continue to be subject to tax.

  4. To purchase tax exempt • For a purchase to be tax exempt, the purchase must be paid for by the Lions Club with a club check or credit card, or invoiced to the Lions Club. Personal checks and cash can not be used to purchase tax exempt.

  5. To purchase tax exempt • You must present a completed Tax Entity Exemption Certificate as issued by the Department of Revenue to the retailer. The certificate contains the club’s name, address, and Kansas sales tax exemption number. When making a purchase, you would complete the name of the retailer, what is being purchased, and sign the certificate. The certificate can be signed by anyone having purchasing authority.

  6. Exception • Sales tax on services is not exempt; e.g., purchase of service for your club building’s air conditioner is taxable. Lions Clubs will typically have few taxable “services”.

  7. Log on to www.ksrevenue.org

  8. Under "Your Business" click on " Exemption Certificates"

  9. Click on “Submit Request for Tax Entity Exemption Certificate”

  10. You will need to create a KSWebTax account by registering for the center. Click on "Register Now".

  11. You will be asked to provide name, address and contact information. You will also need to assign yourself a User ID and password. Be sure to keep your User ID and password in a safe place as you will need it anytime you want to access the certificate.

  12. This screen may appear. Click on Apply for a new Exempt Cert”

  13. There will be a screen with four options. Click on the first option, “Tax Entity Exempt Cert”

  14. Fill this Screen Out. In petitioning authority enter the name of the Lion’s Club you are representing. Goddard Lions Club

  15. For the question Under what statute are you applying for the sales tax exemption? Use the entry “Kansas Chapters of specific non-profit organizations KSA 79-3606(v v)” For Structure of Organization and “Why do you believe you qualify for the Exemption” insert “2007 HB 2171”. You can leave the remaining questions blank.

  16. Save and Close • The screen will be refreshed to show your organization’s name and other information. Click on Save if you are finished or on Edit to make any changes. • You will be taken to a screen that shows your club’s name, the exemption number and a status code of Pending. The application has been submitted and must be reviewed by the department. Check back on this page after 24-48 hours. When the Status code has changed to Approved, the certificate has been issued and available for use.

  17. To Check and Print Certificate click on Exemption Certificate

  18. You will see what your status is.

  19. When you click view slide you can then Print Certificate, View or Cancel.

  20. Make sure you fill out all information

  21. Suggestions: • Make several copies of your tax exemption certificate to have it available when needed. • Save the certificate to your PC desktop. Then it is easily available to print when needed.

  22. Need Help • Please call Lion Linda McCormick, our state secretary, if you need additional assistance, 316.773.2100 or e-mail at. • KansasLions@aol.com

  23. Filling the 990-N To the Internal Revenue Service

  24. It’s the Law • Small tax-exempt organizations whose gross receipts are normally $25,000 or less are required to electronically submit Form 990-N, also known as the e-Postcard. • The Pension Protection Act of 2006 added this filing requirement to ensure that the IRS and potential donors have current information about your organization.

  25. Due Date of the e-Postcard • The first e-Postcards are due in 2008 for tax years ending on or after December 31, 2007. The e-Postcard is due every year by the 15th day of the 5th month after the close of your tax year. For example, if your tax year ended on June 30, 2008, the e-Postcard is due November 15, 2008. You cannot file the e-Postcard until after your tax year ends.

  26. What Do You Need to Get Started • Employer identification number (EIN), also known as a Taxpayer Identification Number (TIN)). • Tax year • Legal name and mailing address • Any other names the organization uses • Name and address of a principal officer • Web site address if the organization has one • Confirmation that the organization’s annual gross receipts are normally $25,000 or less • If applicable, a statement that the organization has terminated or is terminating (going out of business)

  27. Where to Go on the Web • Go to www. Irs.gov • Search for 990-N • http://www.irs.gov/charities/article/0,,id=169250,00.html • Click on “here” in box how to file • Go to http://epostcard.form990.org

  28. Example of Paragraph on IRS Site

  29. When you click “here” you will be asked if it is ok to leave IRS web site. Click “Leave IRS Site”

  30. Register a New User

  31. Step 1 • You need a login ID and password to electronically file your organization's IRS Form 990-N (e-Postcard).Exempt Organizations: If you are filing for your organization or assisting someone who is filing for their organization, you will need the organization's employer identification number (EIN). The system will automatically generate your login ID based on the organization's EIN. The login ID will be the EIN (without the dash) plus a two digit number (i.e. 01, 02, 03, etc). For example, if the EIN for your organization is 00-1234567, then the first login ID for your organization will be 00123456701. Once you have created and activated the first login ID for your organization, subsequent login IDs will have the same format, but will end in 02, 03, etc.

  32. If you get an error – Call or Click

  33. If you get it right! Organization will always come up as International Association of Lions Clubs

  34. Get Back On-Line • In 24 -48 hours get back on line and login in with your password.

  35. Step 2

  36. Log In

  37. Step 3

  38. Quick Menu

  39. Things to Remember • There is lots of help available • You must have your EIN Number: • Get it from your bank • If you get a new one, you must register it with Legal at LCI • Don’t wait until the November 14 to file.

  40. Questions • You can get this slide show by sending an e-mail to djfunke@cox.net Please reference 990-N –Sales Tax Information.

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