Denver, Colorado.
I'm treasurer of a small church. The church closed it's doors last year. We had been collecting donations for a building fund for the previous 3 years. When the church closed, we offered to refund the building fund. Several donors took the offer. Since the donations were taken in '01-03 and the refund was in '04 I cannot juggle their year end recept to report $donations minus $refund as their '04 donations because in some cases the refunds were bigger than the '04 donations.
Do I need to file a 1099-MISC to those that got refunds? Would this force them to pay double taxes on the refund if they didn't use their '01-03 receipts to itemize deductions?
I have consulted with the Denver branch of the IRS and they were bewildered that any 501c3 would want to give money back and I got a lot of tap-dancing that told me that they didn't know the answer for sure.
I'm treasurer of a small church. The church closed it's doors last year. We had been collecting donations for a building fund for the previous 3 years. When the church closed, we offered to refund the building fund. Several donors took the offer. Since the donations were taken in '01-03 and the refund was in '04 I cannot juggle their year end recept to report $donations minus $refund as their '04 donations because in some cases the refunds were bigger than the '04 donations.
Do I need to file a 1099-MISC to those that got refunds? Would this force them to pay double taxes on the refund if they didn't use their '01-03 receipts to itemize deductions?
I have consulted with the Denver branch of the IRS and they were bewildered that any 501c3 would want to give money back and I got a lot of tap-dancing that told me that they didn't know the answer for sure.