Non-profits don’t pay tax, do they? Sure they do, just not income taxes. A non-profit might employ workers, incurring payroll taxes, or own property, incurring property taxes, or if they sell something, there may be a sales tax. If the non-profit fails to properly account for and pay these taxes, board members can become liable for the taxes and penalties due and owing.
If you sit on the board of a non-profit and suspect that there might be problems with the books or with the tax payments, it might be a good idea to give me a call at 503.371.0061 or 877.767.1325 so that we can look over the books to ensure total compliance with tax laws. You don’t want to get the letter from IRS alleging your responsibility for payment of taxes which you didn’t even know existed!