Hi all, looking for a little guidance. Has any unit recently requested an EIN from the IRS for the sole purpose of opening a bank account? I have found an older thread on another chat from 2018 that said the best option was to choose “volunteer/community service” as the proper entity type, but that designation is no longer offered as an option. Obviously, our pack is not incorporated (so corporate designations are not appropriate), and the “charity/nonprofit” designation is reserved solely for legally incorporated entities that already have tax exempt status, which we also are not. We do not want to trigger a filing requirement by using the wrong entity designation. Our charter org is not providing EIN to us. Any insight is much appreciated.
Check with your chartered organization. You may be able to use theirs.
Looks like they tried that unsuccessfully.
Are you chartered to a tax-exempt religious organization?
I cannot provide tax advice to you. So, please make your own decision.
Here’s what I would do.
If the chartered organization is a church, synagogue, mosque, uddhits temple, etc., I would check Church or Church-Controlled Organization. If not, I would check Other Nonprofit Organizaton. That box is not only for those with approved tax exemptions as many people assume. If your Cub Scout pack is not attempting to earn a profit, it is a nonprofit organization.
For Line 10, I would check Banking Purpose and write in Cub Scout Pack.
Some other notes…
Line 6 should be blank, because a Cub Scout pack has no business. I would not even write N/A. I would just leave it blank.
Line 8a should be answered No. Lines 8b, 8c and 9b should all be blank.
I would leave Lines 11 through 17 completely blank. The don’t apply to a Cub Scout pack.
I applied for an EIN for a foreign-owned entity in late July by fax and still haven’t received it. The entity was not permitted to apply online, because of its operational characteristics. I urge you to apply online for the EIN.
Volunteers who spend money out of pocket for a section 501©(3) organization can deduct their expenses. In additgoin, donations to these organzatons can be deducted. By geting an EIN, the pack is separating itself from what might be a tax-exempt organization. This might jeopardize deductions people could otherwise claim. Consult your tax adviser.
If there’s any way at all you can change the chartered oranization’s mind and use their EIN, that is your best path.
Thanks for your advice, Peter! We ended up choosing “Other Nonprofit Organization/Community or Volunteer group.” That categorization is noted by the IRS as one used by unincorporated not for profit entities purely for banking purposes. Seemed to fit the bill. Got the EIN instantly by doing it online. Best, Donna
@DonnaToohey - My client that applied for an EIN in July just got it yesterday.
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