EO Form 2807 Sample

Do not use this verbatim. Tailor your agreement to fit your issues.

Form 2807

DEPARTMENT OF THE TREASURY - INTERNAL REVENUE SERVICE

(Rev. July 1980)

AGREEMENT TO MAINTAIN ADEQUATE BOOKS OF ACCOUNT AND RECORDS

During the examination of my Federal income tax return for the year(s) shown, consideration was given to the adequacy of the books of account and records I now maintain. As a result, I agree that, to be able to make a proper return of income in the future, I will maintain the specific books of account and records described below.

YEAR(S) 12/31/2011

DESCRIPTION

Section 6001 of the Internal Revenue Code of 1986, as amended (the "Code"), provides that every person liable for any tax imposed by title 26, or for the collection thereof, shall keep such records, render such statements, make such returns and comply with such rules and regulations as the Secretary or his delegate may from time to time prescribe. Whenever in the judgment of the Secretary or his delegate it is necessary, he may require any person, by notice served upon such person or by regulations, to make such returns, render such statements, or keep such records, as the Secretary or his delegate deems sufficient to show whether or not such person is liable for tax under title 26. Section 6033 provides, in general, that every organization exempt under section 501(a) shall file an annual return, stating specifically the items of gross income, receipts, and disbursements, and such other information for the purpose of carrying out the internal revenue laws as the Secretary may by forms or regulations prescribe, and shall keep such records, render under oath such statements, make such other returns, and comply with such rules and regulations as the Secretary may from time to time prescribe. We notified you on [date] that your books and records are not adequate to permit the Internal Revenue Service to determine the correctness of your Forms 990 and the extent of your unrelated business income tax liability. The amounts reported on your Form 990 do not agree with documents you have provided us. You did not maintain original source documents to support your transactions. Specifically, we can’t determine how and under what circumstances your funds were distributed. Also, we can’t confirm who your recipients were for charitable distributions, and whether they were charitable organizations or of a charitable class. Consequently, we can’t ascertain whether your assets are dedicated exclusively for charitable purposes in order to justify continued recognition of your tax-exempt status under section 501(c)(3) of the Code. Your records also don’t permit us to confirm whether amounts you received are contributions or sales of goods and services. For some transactions we believe to be contributions, we can’t identify your sources for purposes of determining your proper foundation status, and ultimately your tax liability under Chapter 42 of the Code, if any. We found you liable for unrelated business income tax for the sale of widgets, but your records don’t permit us to determine the extent of your sales. You erroneously reported a substantial amount of your gross income from sales as contributions, and you didn’t report all of the amounts you received. You are required to maintain the books and records listed below: • Names, addresses and contact information for individual and corporate donors • Copies of all acknowledgments of charitable contributions issued to donors • Copies of contribution agreements and correspondence with donors • Records of any goods or services provided to any donor • Documentation pertaining to any in-kind donations received • Taxpayer Identification Numbers of all recipients of grants from your organization • Copies of determination letters issued by the IRS to the grant recipients, as applicable • Documentation of how grants are/were used by the grant recipients • Documentation of (internal) approval determinations for all grants made • Documentation of all transactions for the provision of goods or services with all parties • Documentation of sales (such as a sales journal), and copies of orders for widgets from customers.

SIGNATURE OF TAXPAYER (OR PARTNER)

ADDRESS

DATE

SIGNATURE OF SPOUSE IF PRIMARILY RESPONSIBLE FOR KEEPING ALL OR PART OF NECESSARY RECORDS

ADDRESS

DATE