On April 11, 2020, at 6 PM, the following individuals held a conference call to continue the discussion on XUAS’ overdue tax returns: Nhiabee Xiong, May Cha-Xiong, Peter Phia Xiong, Luexa Xiong, and Yang Xiong.
First, we reviewed May’s report on the information she gathered from talking to the Franchise Tax Board. The items covered are as follows:
- We have the option of filing an extension if we need one for the current tax year. As for the other years (2016, 2017, and 2018), they have already been deemed late. We will need to search for the form on the web if we want to file for an extension.
- Our late penalty will be $50.00 for each year that we did not file our tax return on time. If we cannot afford it, we can request a fee waiver, which can be turned in with Form SI-100. However, we will not file Form SI-100 until after XUAS has decided on whether or not to renew it at the upcoming May 15, 2020 meeting/conference call.
- If we want to be considered for tax exemption in the State of California, we would need to file Form 3500 and include our Articles of Incorporation, Bylaws, and $25.00. Yang will go ahead and review this form to see if it is a form that could be filed or if it would require additional factors that must be first considered by the XUAS membership.
- To file our taxes, we can use Form 199N. Yang has had an opportunity to review this form (click here). It is straightforward to complete, but it does ask who to list as the Principal Officer, which would fall on President Cha Lee Xiong. He previously indicated that he does not want his name or address to be on any of these documents. One way to get around this may be that it would need to be signed by someone else such as the Vice President, Secretary, or Treasurer. Luexa suggested that we approach President Cha Lee to ask him to sign. If he would not sign it, then we can pursue the other options.
- There was one last item that May wrote down that we need to register the new administration with the Franchise Tax Board. However, this task appears to be referring to Form SI-100, which is yet to be determined if XUAS would continue to register or not.
Following the above discussion, we covered the discrepancies that have been found as XUAS’ financial records were reviewed from the year 2013 to the year 2018. The following points were made:
- If the records are taken as they are currently kept, there is a discrepancy of $6,003.31 that is unaccounted when President Nhiabee Xiong’s administration started putting XUAS finances in the bank on May 1, 2017. From the period of March 4, 2017 to April 31, 2017, there were no financial records found. Beginning May 1, 2017, all financial records have been just the Wells Fargo bank statement. There were no receipts found either.
- In 2016, some receipts received from the Father’s Day fundraiser were made payable to XUAS. By the time XUAS was able to open the checking account so that these checks could be cashed, some of them have already expired or the sponsor no longer has the funds available, causing the check to bounce.
- Nhiabee and May clarified that at the time when Nhiabee’s administration commenced on January 1, 2017, the available funds were only $6,100.00, not $10,053.31. Because of this, the math was redone for the Year 2017 to see if it would explain the discrepancy. If we, indeed, use $6,100.00 as the starting balance on January 1, 2017, then it appears that only $50.00 is unaccounted for the Year 2017, and the discrepancy now seems to have been made somewhere between January 1, 2013 – December 31, 2017.
- On 2/16/2017, the records showed that a laptop was purchased for XUAS for $600.00. Nhiabee and May indicated that while that purchase was considered, they ultimately decided not to buy it. However, there is no record of the funds having been redeposited.
The next steps are the following:
- May and Nhiabee will go back and consult with Tommy Xiong, who was the President from 2013 – 2017, on the discrepancies.
- May and Nhiabee will also address the laptop matter.
- Yang will report back to President Cha Lee Xiong and the other officers and Board of Directors regarding today’s meeting. Yang will explain Form 199N to President Cha Lee Xiong and the officers. Yang will also start reviewing Form 3500 to determine whether it is a form that can be completed at present or would it need to be tabled due to reasons which may need the involvement of the rest of the XUAS membership.