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Requiring SCCA membership for IRS reasons

To: "Eric Linnhoff" <knuckledragger@kcweb.net>,
Subject: Requiring SCCA membership for IRS reasons
From: Sam & Greg Scharnberg <samandgreg@netins.net>
Date: Tue, 23 Nov 2004 13:32:29 -0600
Eric:

The concern about source of income only applies to regions that have 
certain filing statuses with the IRS.  For those regions, the problem is 
that the IRS have ruled that other region's members are "non-members" when 
considering source of funds.  A big deal when a region is putting on road 
races.

For most Solo only regions, I would think that this IRS ruling is not an 
issue.  (But I could be wrong.)

Greg Scharnberg

At 01:14 PM 11/23/2004 -0500, Eric Linnhoff wrote:
>----- Original Message -----
> > Anybody else care to weigh
> > in on why your region went to SCCA-members-only?
>=================================
>A region's tax status is another prefectly good reason for requiring all
>participants to be members.  Something about too much of the club's income
>percentage coming from non-members can jeopardize a region's not for profit
>tax status.
>
>And we must keep the Guv'mint man happy.
>
>Eric






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