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Do units file income taxes?

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""It Depends""  I am not a tax accountant nor do I portray one on tv.

That said,  if your bank account has immense amounts of money in it, and your bank statement notes a "withholding", then you must file to get the witholding back, assuming your unit is a non-profit and you need that money back.  yeah, gotta file .  If no withholding, and a paucity of money in your account,  check with your tax accountant. 

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1 hour ago, PACAN said:

 most units have their own EIN number and don't or can't use their CO ...

"Have" versus "should" is the issue and a huge area of confusion.  Ask five people then you will get twelve opinons. 

  • Units are "owned" by their charter org.  Owned means same entity.  Same entity means same incorporation ...  same EIN.
  • My experience is many COs are reluctant to give their EINs out to the scouting unit.
  • My experience is most units have their own EIN because they go to a bank to open a bank account.  Then, a banker sends them to the IRS non-profit registration site and creates a new non-profit entity for them. 
  • Most units never file paperwork ... taxes, annual non-profit status registration, etc.
  • Most units just fly under the radar ... but that doesn't mean the units are setup correctly.

In my 20 years, no unit has gotten in trouble with the IRS or state authorities.  But it doesn't make it safe or right.  I'd get more and more worried as more dollars travel thru the account each year.  It's one thing to route $10,000 thru a troop account.  It's another to route $60,000 or $100,000 thru the account.

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