Policy Statement

Lakeway Christian Schools (LCS) recognizes the importance of complying with all applicable tax laws and regulations. This policy establishes guidelines for the preparation, filing, and retention of tax returns to ensure that the school fulfills its tax obligations accurately and in a timely manner.

Objective:

The objective of this policy is to:

• Ensure the accurate and timely preparation and filing of all required tax returns, including federal, state, and local tax returns.
• Maintain compliance with tax laws and regulations to prevent potential financial penalties or legal issues.
• Safeguard the school's tax-exempt status, where applicable, by adhering to the requirements for tax-exempt organizations.

Responsibilities:

• Chief Financial Officer (CFO):The CFO is responsible for overseeing the preparation and filing of all tax returns, including but not limited to:
  • Federal income tax returns (e.g., Form 990 for tax-exempt organizations).
  • State and local tax returns, if applicable.
  • Payroll tax returns (e.g., Form 941 for federal payroll taxes).
  • Sales tax returns, if applicable.
• The CFO shall ensure that tax returns are accurate, complete, and filed by the respective deadlines. The CFO should also keep abreast of changes in tax laws and regulations that may affect the school's tax obligations.
• External Tax Advisors: The school shall engage external tax advisors, such as certified public accountants (CPAs), to assist with tax return preparation and provide expert advice on tax matters.

Filing Deadlines:

Tax returns shall be filed in accordance with the deadlines set by federal, state, and local tax authorities. The CFO shall maintain a calendar of tax filing deadlines to ensure timely compliance.

Tax-Exempt Status:

LCS holds tax-exempt status under applicable tax laws. The CFO shall take necessary steps to maintain this status, including the timely filing of Form 990 and adherence to all requirements for tax-exempt organizations.

Record Retention:

Copies of all tax returns, supporting documentation, and correspondence with tax authorities shall be retained for a period of 7 years as required by applicable tax laws and regulations.

Review and Revision:

This policy shall be reviewed annually and revised as necessary to reflect changes in tax laws, regulations, or the school's financial practices. Any proposed revisions to this policy shall be presented to the Board of Directors for approval.

References:

• LCS Financial Policies and Procedures
• Federal Laws, Regulations, and Standards
• IRS guidelines for tax-exempt organizations