Should we report income tax to the IRS if we work for non-profit organization voluntarily such as religious worker ?

We voluntarily work for non-profit organization, and members of that organization donate money to us. After that, we have some money for our necessities in everyday life. We want to create personal checking or saving accounts at any bank that we like to do so, in order to be easy for us to travel to any place or for our everyday expenses. My guestion is that, should I report income tax to the IRS at the end of each year? What amounts should be limited for individual's personal checking account if that income is from donation or charity? On the other hand, we create checking account savings account or apply for credit card for only one purpose is that it is safer us to use money when we spend or buy something at the stores or gas station. What I described is right or wrong? I am looking forward to hearing from any experts of non-profit organization. Thank you.

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Answer 1 / 3

Submitted 151 days ago...

Saber579

New User (3)

Our community have (501)(c)(3) that was acknowledged by state and IRS. We work for community without salary or hourly wages, and our non-profit organization takes responsibility for us.
We just want to ask you some guestions that mentioned about our personal money. Should we report it to the IRS or not?

Thank you.

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Answer 2 / 3

Submitted 150 days ago...

Susu

Professor (1,358)

If you put any money from the organization into your own personal account, it is subject to taxes as it will be considered income. If you do not report it, you will be charged with tax fraud, and possibly embezzelment if you are caught. This can also affect your 501(c)(3) status. Therefore, you should use a special account set up for the organization.
You are still required to keep records of all activities both financial and non-financial. This includes but is not limited to contributions, grants, sponserships, and any other sources of revenue, as well as who made such contributions. If your income is $25,000 (gross receipts) or more annually, you must file an annual information return (Form 990, 990EZ or 990PF) along with schedules A & B. If not then you must go online and file a 990N. Also, if you make $1,000 or more from an unrelated trade you must file a 900T.
if you pay with cash keep all receipts. It is better to use the bank account whenever possible to help support what you are claiming. Keep really good records, as an audit can be very time consuming, and often if your records aren't detailed and you cannot remember the details they may not allow it, thus affecting your status. Even if it is a simple mistake, interest and penalties could end your organization.
Good luck, Susu

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Answer 3 / 3

Submitted 147 days ago...

ldsch

Expert (821)

You're talking potential jail time here for intentional tax evasion.

The fact that you receive money from a tax exempt organization or community does not excuse you from having to declare what you receive as income and paying federal and state income taxes on that amount. If someone told you that was the way it works they are probably involved in something illegal.

The community or organization may have tax exempt status but you do not.

jail time here. I don't know where you got the idea what you're doing is legal, but an IRS representative would probably

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