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#668111 - 01/18/07 06:57 PM Opening memorial or league accounts
ComplianceisOK Offline
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ComplianceisOK
Joined: Jan 2005
Posts: 167
Dickinson, ND
A few questions when opening a memorial or bowling league account:
The memorial fund or league is the owner of the account?
For CIP purposes (they are not required to have an EIN) we would obtain the SSN of the signer or one of the signers if more than one?
The signer is not the owner- correct?
Can the account be interest bearing? if so who is responsible to report the interest?
If only one signer and that person dies - do the funds then controlled by their representative?
I would greatly appreciate any help!!
Thanks much
Sherri

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#668287 - 01/18/07 08:32 PM Re: Opening memorial or league accounts ComplianceisOK
MadisonCali Offline
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Joined: Jun 2006
Posts: 2,515
I know when I was researching these types of accounts, the Deposit Manual from my state's banker association was very helpful...have you looked there?
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#668484 - 01/19/07 01:30 PM Re: Opening memorial or league accounts MadisonCali
opsofficer Offline
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Joined: Jan 2007
Posts: 3
For CIP purposes, the "customer" is the person opening the account. However, we do require the informal organization to obtain a EIN for banking purposes. It is a simple procedure using IRS Form SS4 and indicating the TIN is needed for banking purposes. WE NEVER USE THE SSN OF THE SIGNER ON THE ACCOUNT. The account can be interest bearing and the interest is reported under the EIN of the organization. The death of a signer does not affect the account...their representative cannot take over control of the funds. Signers are designated using a resolution for an unincorporated organization or association and if available we also keep a copy of the meeting minutes authorizing the account and assigning transaction authority. We treat these accounts the same as any other unincorporated business.

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#668524 - 01/19/07 02:21 PM Re: Opening memorial or league accounts opsofficer
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
opsofficer - that is definitiely the way to go with these types of accounts - nice recap. I would suggest however, since the organization applied for a EIN for banking purposes only, that they only be placed in a non-interest bearing account. Otherwise, they may be subject to filing State or Federal income tax returns.
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