[Hcoop-discuss] Tax forms etc.

[Nathan Kennedy]

Hello people,

First of all I would like to apologize about my absence and general 
flakiness of the past month.  Basically life has been living hell (with 
some bright spots :-), I think Frank probably has some idea what I'm 
going through.  Things will be much much better starting mid-May.

I took responsibility for the tax forms both in my position as secretary 
and by positive affirmation a while back.  I had told Adam a few weeks 
ago that I had basically finished preparing the forms, but I had not 
been happy with my figures and kept putting off going over it again.  
Because our tax obligation is so low, our tax-exemption application is 
pending, and this is our first year of operation as a legal entity, I 
expect that the IRS will be forgiving--but because I took full 
responsibility for the forms, I will personally indemnify the co-op for 
any lateness penalties, i.e. if the IRS assesses any additional charges 
due to our income tax form being submitted in an untimely fashion this 
year, it will be taken out of my HCOOP account rather than assessed to 
the general membership.

Another thing I found in reading the instructions unfortunately is that 
corporate income tax forms are not due April 15 like personal income tax 
forms, but rather the 15th of the month three months after the end of 
the corporation's accounting year.  According to our documents our 
accounting year ends Dec 3, so I am guessing that this would be March 
15th and that the form may be already due, although there may be special 
provisions for us given that we only incorporated last February, I am 
not entirely sure.

In any event, my latest version of the form 1120-A is at 
http://hcoop.net/board/hcoopreturn.pdf
I was not able to check the boxes in the PDF, so the boxes I will check are:
E (1) Initial Return
F (1) Cash
II 5 (b) no
II 6 no
II 7 yes

Total tax obligation is $143.00 (15% of retained earnings).

I did not deduct depreciation for Abulafia.  This would require an 
additional schedule, and there are strict rules regarding depreciation 
for federal income tax purposes, and given the negligible savings that 
we would incur from that I thought it would be best to keep it simple.

I can send this out any time, and I can also provide the tax check, to 
be credited to my HCOOP account once it clears.

Hopefully we will get a letter of exemption from the IRS within the next 
six months and this will be both the first and last income tax form that 
HCOOP needs to file.

By the way the second board election ended with 11 votes for all three 
candidates.  Not bad turnout considering all candidates were incumbents 
so the result was pretty much predetermined this year.

-Nathan