Events requiring the filing of a tax return . . .

[dougjdixon]

A group from our stake recently attend the game show Let's Make a Deal. The game show, in an effort to fill its audience, pays money to groups exceeding a certain size for each person in the group. In order to collect the money, the game show requires the group to submit its Tax ID No. In this instance, the group submitted our stake's Tax ID No., and we received a generous check that this group would like to use to fund future activities. Does anyone know if our stake would be required to file a tax return if we were to cash the check from the game show? By the way, we are in a state in which the Church is not tax exempt.

[russellhltn]

I think you'd be best calling CHQ for an answer to that, since it probably involves tax law.

we received a generous check that this group would like to use to fund future activities.

That could be a problem. Policy says that activities are to be paid for out of budget. You can't donate to budget. There is an exception for fund raising, but I'm not sure as this would fall into an approved fund raising activity.

[crislapi]

I agree with RussellHltn. The group should probably have not accepted the money. It cannot go in budget as all ward activities are to be paid for from ward budget funds and donations are not allowed. I can't speak for the tax requirements. Best to contact LUS for some direction on that. However, if you would be required to file a tax return, then I think handbook 2 excludes it. From section 13.6.8:

Examples of fund-raising activities that are not approved include:

• Activities that would be taxable.
• Activities completed with paid labor, either by employees or by contract.
• Entertainment for which the stake or ward pays performers for their services, when admission is charged, and when the intent of the activity is to raise funds.
• The sale of commercial goods or services, including food storage items.
• Games of chance, such as raffles, lotteries, and bingo.

Any exceptions to these instructions must be approved by a member of the Presidency of the Seventy or the Area Presidency.

If you must file a tax return, then it is taxable and therefore not allowed unless approved as described.

[Mikerowaved]

Since this is a very unusual situation, I would agree with the others to contact CHQ directly. Here's some information to get you started...

Tax Administration
50 East North Temple Street, Room 2223
Salt Lake City, UT 84150-3620
Telephone: 1-800-453-3860, extension 2-3003

If you must file a tax return, then it is taxable...

It's best to leave that to the tax authorities.

[dougjdixon]

Thanks for the responses. I called CHQ as suggested, and was told that, based upon our specific set of facts, our stake would be allowed to accept the money and this would not create a taxable event for the stake. The brother in the tax department said this was a first for him.

[russellhltn]

Thanks for letting us know the outcome.