Discussion:Dissolving A Non-Profit - Health Care
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| Wow, that wouldn't be fair to the rest of the taxpayers that are playing by the rules, would it? | Wow, that wouldn't be fair to the rest of the taxpayers that are playing by the rules, would it? | ||
| - | In my state, you have to have manadatory language regarding the process of dissolution in the Articles of Incorporation. And, the last time I looked, it didn't have anything in there about transferring the assets to the individual taxpayer's "shell" corporation.}} | + | In my state, you have to have manadatory language regarding the process of dissolution in the Articles of Incorporation. And, the last time I looked, it didn't have anything in there about transferring the assets to the individual taxpayer's "shell" corporation. |
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| + | You don't have to be an expert in NFP's to have some little ethical bell in your head go "ding ding".}} | ||
Revision as of 21:57, 3 November 2009
Discussion Forum Index --> Advanced Tax Questions --> Dissolving A Non-Profit - Health Care
Discussion Forum Index --> Tax Questions --> Dissolving A Non-Profit - Health Care
| 3 November 2009 | |
| I have a client with four entities. A partnership with 3 partners (1/3 each), a Non-profit- employees, revenues, expneses, etc, and then two additional "shell" companies.
Two of the partners have had no communications with my client for the past three years. His goal is to slowly dissolve the partnership and non-profit, while moving the business into his two shell companies. Can you think of any tax ramifications? The legality issues of doing such a transition without the other partners consent? What happens if you dissolve the intitial partnership with recieveables still uncollected? There is just a series of "what ifs" and I am wondering if anyone has run across an issue such as this. Additional, they are home health care businesses, which leads to another question....how do we transfer the employees? What about the medicare and medicade start-up? Are people going to be just willing to transfer to another company, goodwill? Much thanks. | |
| 3 November 2009 | |
| Profile: "Hello, My name is jeff and I am a tax manager in Cleveland, ohio." REALLY?
Hmmmmm. He's running a non-profit with employees and presumably assets? Can you just transfer such assets to private control? Sounds like your client needs to hire an attorney with some experience in non-profit matters. In fact, he might need a whole law firm to unwind him from his messes. | |
| 3 November 2009 | |
| Thanks for the sinde remark....Some cpas are unfamiliar in the world of NFP....
A non-profit with employees, no assets is indicative of the term "realy"...why don't you explain it to those less fortunate folks....Show me where it says a NFP can't have salaries... | |
| 3 November 2009 | |
| I'm no expert on Non Profits but they are not business entities owned by any individual or partners. When a Non Profit winds down it must donate all its assets to a similar Non Profit doesn't it? It can't liquidate and distribute its stuff to any "owners". Agree with Crow that your TP needs an attorney with experience in these matters.
Your TP would need to start a new entity if it wishes to proceed in the same field that Non Profit was in and possibly hire some of the prior Non Profit employees. Dissolving the partnership would be a separate issue. An attorney experienced is those matters should be consulted also. Sounds like your 1/3 owner wants to dissolve on his own without the input of the other partners who own 2/3rds. | |
| 3 November 2009 | |
| Jeffrey, you think it's ok to enjoy the tax benefits of a non-profit corporation, build up a book of business and certain other assets, and THEN set up a "shell" corporation, and just la de da, transfer such assets to the "shell"?
Wow, that wouldn't be fair to the rest of the taxpayers that are playing by the rules, would it? In my state, you have to have manadatory language regarding the process of dissolution in the Articles of Incorporation. And, the last time I looked, it didn't have anything in there about transferring the assets to the individual taxpayer's "shell" corporation. You don't have to be an expert in NFP's to have some little ethical bell in your head go "ding ding". | |
