Tax Attic for 7-18-19

There certainly is a lot going on in our City of Rockford this summer. City Manager Thad Beard was the guest speaker at last Tuesday’s Rockford Rotary Club meeting and gave us an overview of the projects in place. Allow me to give you a quick rundown of a couple of projects, among the many that Thad discussed. First, you might have noticed activity on Courtland St between 10 and 11 Mile Roads around where Rum Creek crosses under the road.  Kent County and Rockford personnel are working on widening Courtland to accommodate sidewalks on the Rockford side of the road. The ultimate goal of the project is to have a system of sidewalks in place so all can navigate that mile without having to walk in the road at all. One of Thad’s long term goals is to connect residents on the east side of Wolverine St with the rest of the city on the west side perhaps via a tunnel under Wolverine that might run alongside Rum Creek.  That sounds like a wonderful project to me.  Second, a consultant has been hired to prepare plans to update Memorial Park and Garden Park.  Both of these parks provide valuable green space and, especially in Memorial Park’s case, the green space can be re-worked to greater advantage.  Third, the city has been working through the process of finding an additional water source.  We are near 80% capacity some days and that is the statistical spot at which the State of Michigan directs a municipality to find more water capacity. Rockford has been working on that water source for a few years now and will continue by soon drilling at a new location just outside of town in Courtland Township. Fourth, thanks to a Michigan DNR grant and matching money put up by Rockford residents, a boardwalk on the west side of the river along River St is being constructed.  The boardwalk runs from Bridge St down to just north of Division St with an upper and a lower portion as well as river access points. This will be a great addition to downtown. Fifth, Thad talked about the expansion plans being worked on for the Krause Memorial Library. This is an exciting project backed by the surrounding townships and the Kent District Library system.  It’s still in the preliminary stages but everyone agrees that it’s time to move forward with an expansion/update of Krause.  Finally, Thad passed on the latest information about the boutique hotel that is being proposed to be built on City property on Main St. The project is currently in the analysis stage.  The City and the developer, Orion Construction, are sharing the cost of a parking analysis since the hotel will require parking that has to be carved out of either the present parking spot pool or will entail creating new parking.  The developer has also commissioned a financial analysis of building and running the hotel based on the business activity and the projected number of rooms. This study must show the hotel will be a financially feasible project for it to continue.  Presuming the analysis comes back in the positive, this is also an exciting project with long term  effects.  Rotary thanked Thad for taking the time to give us the update. Thad has been a great addition to our City and has an easy, but effective,
leadership style.

Non-profit organizations and donations to them seem to be receiving more attention from Congress and the IRS. Organizations are required to electronically file a form every year.  That form can take be a 990-N, a 990-EZ, or a 990.  The 990-N is called a postcard because it looks like a postcard on the screen. Only organizations with gross income of $50,000 or less can take advantage of using the N. A 990-EZ can be filed if gross receipts are less than $200,000 and the entity has assets of less than $500,000. Non-profits with revenue of at least $200,000 or assets of at least $500,000 must file a 990.  If any organization doesn’t file a return for three consecutive years, it’s non-profit status can be revoked and the organization must re-file paperwork to be re-gain that status. Under new rules, the IRS will be required to send a notice to any entity that has not filed a return for two years. Currently,  the IRS does publish a list of delinquent organizations but it doesn’t directly contact the entity that it is losing it’s status.  This is a good change.  There are other changes to the non-profit rules coming from the IRS.  I will go over them as they are published.  This is Jerry Coon signing off.

Jerry Coon is an Enrolled Agent. 

Action Tax Service is a part of 

Integrity Tax Group on Northland Dr. 

Contact Jerry at