The role of the Local Treasurer is to protect the funds and assets of the Local.The Treasurer's duties include:
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Applying for an Employer Identification Number (EIN)
- Maintaining financial records
- Depositing per capita receipts from the National in a timely manner
- Providing a financial report at each membership meeting. The report must include a copy of the Local's most current bank statement
- Meeting any federal, state, county or city reporting requirements, including the timely filing of the Local's annual Form 990 and LM report (if applicable)
- Ensuring that every Local check that is issued is signed by two officers
- Documenting in detail any disbursement or expenditure, including providing supporting documents such as receipts
- Ensuring the Local complies with bonding requirements if applicable (see Bonding Requirements below)
In order to open a bank account, your Local must have an EIN.
Filing Your Local's IRS 990 Form
Federal law now requires that every local union file an annual information return—Form 990, 990-EZ, or 990-N—with the IRS. Most Local unions will file the 990-N (e-Postcard). The filing 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 December 31, the e-Postcard is due May 15 of the following year. If your local fails to file for three consecutive years, you will lose your tax-exempt status
How to Reapply for Tax-Exempt Status after Automatic Revocation
Under the law, your Local will automatically lose its federal tax-exempt status if you fail to file a 990 for three consecutive years. This link to the IRS website explains how to reapply for tax-exempt status.
Read More at the IRS website
This IRS video
describes the reinstatement process, including a program to help small organizations regain their exempt status.
Bonding is an insurance agreement used to protect unions from losses caused by acts of fraud or dishonesty by officers, employees, or other representatives. Every union covered by the LMRDA (private sector) or the CSRA (federal government) is subject to bonding requirements except for unions with property and annual receipts that do not exceed $5,000. Read More