February 5, 2013
By Salvatore J. Armao, CPA/PFS, CFP, CFE
The LM-2 filing deadline is March 31, 2013 for Labor Organizations with a calendar year which ended on December 31, 2012.
Now is the time you should accumulate all of the comprehensive information needed to file a timely and accurate form LM-2.
Much of the information that is necessary can be found in the organization’s books and records; it will be necessary to arrange that information in a specific way to conform to the LM-2 requirements and this can take a tremendous amount of time if you have not prepared properly.
The LM-2 requires all payments to vendors of $5,000 or any series of payments to one vendor that equal $5,000 to be reported separately on its own page within the form. This is so that there is transparency as to how the Labor Organization is spending its dues paying members’ money. If any payments were made to a credit card company those payments have to be separated by vendor to see if they meet the $5,000 threshold.
Additionally, all officers’ payrolls and other disbursements to officers paid by the Labor Organization must be allocated into five separate categories by the percentage of time spent by each officer in each category. The categories are:
· Representational activities
· Political activities and lobbying
· Contributions, gifts and grants
· Union administration
· General overhead.
This will require a reasonable estimate of the amount of time spent in each category in order to calculate the percentages.
There are also special rules that apply to automobiles used for both business and personal use.
Preparation is the key to getting your labor organization’s Form LM-2 filed timely and to ensure that the information contained therein is accurate.
The LM-2 has a filing deadline of March 31, 2013 for the calendar year 2012; there are no extensions of time to file available. So you should begin to gather the necessary information now. March 31 is not far away.
For over 25 years, Armao, Costa & Ricciardi, CPAs, P.C., has been committed to providing accounting, auditing, tax, financial and wealth management and advisory services to labor unions and employee benefit funds. Visit us at www.acrcpa.com. Mr. Armao can be reached at 516.256.3200 or email@example.com.