It recently came to my attention that our chartered org had it tax exempt status revoked some time ago because of a failure to report. How could this affect our Troop?
I’m not a professional in that area, but I do know that units derive their tax status from their chartered organization, not from the BSA at large. Presumably, if your charter is no longer tax-exempt, the unit can no longer claim tax-exempt status for their expenditures/donations. I’m not aware of any requirements that a chartering organization be tax-exempt.
Mostly just prevents you from making tax exempt purchases. Otherwise, no change.
You also don’t have to worry about whether scout accounts will jeopardize your CO’s tax exempt status.
And your leaders won’t be able to claim out of pocket expenses as itemized deductions on their personal tax returns.
Anyone making a donation to the troop will not be able to deduct it. As @jacobfetzer said, that includes out-of-pocket expenses incurred by volunteers.
As a taxable organization, the deductibility of all your unit’s spending is questionable. These may not be ordinary and necessary expenses in carrying on a trade or business. In contrast, dues your Scouts pay would be gross income for your chartered organization. So, would donations anyone makes that are deposited into the unit’s account.
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