2024-01-15T10:32:47-06:00 2022-12-31 561445619 NEAL BRADSHER & TAYLOR PA 4721 EMPEROR BOULEVARD SUITE 130 DURHAM NC 27703 990 2022-01-01 510198497 ARTS CENTER ARTS 9199292787 400 ROBERSON ST CARRBORO NC 27510 MICHAEL FRISCH EXECUTIVE DIRECTOR 9199292787 2024-01-15 1 MICHAEL FRISCH 999009999 0 MICHAEL CLONCH P01380043 9194893369 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z X MICHAEL FRISCH 400 ROBERSON ST CARRBORO NC 27510 1703960 0 X WWW.ARTSCENTERLIVE.ORG X 1975 NC THE ARTSCENTER EXISTS IN ORDER TO EDUCATE AND INSPIRE ARTISTIC CREATIVITY AND TO ENRICH THE LIVES OF PEOPLE OF ALL AGES. 14 14 34 55 0 0 1451417 859967 484522 693846 451 2840 68596 147307 2004986 1703960 15129 23659 0 0 456760 590776 0 0 253083 478882 857852 950771 1472287 1054215 231673 5087737 8701912 1773936 5156258 3313801 3545654 X THE ARTSCENTER EXISTS IN ORDER TO EDUCATE AND INSPIRE ARTISTIC CREATIVITY AND TO ENRICH THE LIVES OF PEOPLE OF ALL AGES. 0 0 258679 390222 SINCE 1982 THE ARTSCENTER HAS PROVIDED SUMMER ARTS ENRICHMENT OPPORTUNITIES FOR CHILDREN. ARTSCAMP EMPLOYED TEACHING ARTISTS WHO INSTRUCTED CAMPERS, AGED 5 -17, IN MOVEMENT, DRAMA, MUSIC, PHOTOGRAPHY, CERAMICS, SEWING, SCULPTURE, PAINTING, DRAWING, CARTOONING AND CREATIVE WRITING. HUNDREDS OF CAMPERS ATTENDED WITH THE MAJORITY TAKING PART IN AT LEAST 2 PROGRAMS. ADDITIONALLY, THE ARTSCAMP TEEN VOLUNTEERS GAINED VALUABLE WORK EXPERIENCE, AND ENJOYED ARTS ENRICHMENT, WHILE EARNING COMMUINTY SERVICE HOURS. ARTSCAMP PROVIDES THE YOUTH OF OUR COMMUNITY AGE APPROPRIATE OPPORTUNITIES TO EXPLORE, DEVELOP, AND REFINE ARTISTIC EXPRESSION WHILE SUPPORTING ARTISTS BOTH ESTABLISHED AND EMERGING WHO INSTRUCT AND INSPIRE CAMPERS AND THEIR FAMILIES. 370340 23659 157016 THE ARTCENTER'S ARTSCHOOL PROVIDES NON-DEGREE ARTS EDUCATION TO ADULTS IN A VARIETY OF DISCIPLINES. WE OFFER BEGINNING, INTERMEDIATE AND ADVANCED CLASSES IN DRAWING, PAINTING, DIGITAL ARTS, WRITING, CERAMICS AND SCULPTURE, JEWELRY MAKING, GLASS-WORKING AND PHOTOGRAPHY. CLASSES RUN YEAR ROUND WITH FOUR QUARTERS: FALL, WINTER, SPRING AND SUMMER. SINCE WE PROVIDE OPTIONS IN SEVERAL ART FORMS, WE ARE BETTER ABLE TO OFFER PARTICIPANTS A COMPREHENSIVE ARTS EXPERIENCE. THE ARTSCHOOL INCREASES COMMUNITY PARTICIPATION IN, AND APPRECIATION OF THE ARTS, ENCOURAGES EMERGING ARTISTS, AND EMPLOYS A SIGNIFICANT NUMBER OF TEACHING ARTISTS. THE PROGRAM SERVES NOT ONLY THE RESIDENTS OF CARRBORO AND CHAPEL HILL, BUT THE GREATER TRIANGLE AREA, INCLUDING RESIDENTS OF DURHAM, HILLSBOROUGH, PITTSBORO, CARY, APEX AND RALEIGH. 163266 66381 THE ARTSCENTER'S CONCERTS PROGRAM IS AN INTEGRAL PART OF OUR MISSION TO INSPIRE CREATIVITY AND COMMUNITY THROUGH ARTS EDUCATION, PERFORMANCE, AND EXHIBITION. WE PRESENT TOURING ARTISTS AS WELL AS LOCAL PERFORMERS, AIMING TO CREATE A POSITIVE THEATER EXPERIENCE FOR BOTH ARTISTS AND PATRONS. OUR SPACE IS ALSO AVAILABLE AS A RESOURCE TO OUTSIDE PRESENTERS, INCLUDING EVENT PROMOTERS, ARTS PARTNERS, AND A WEEKLY RELIGIOUS FELLOWSHIP. 60261 126521 AS THE AREA'S ONLY ART-BASED AFTERSCHOOL PROGRAM, THE ARTSCENTER AFTERSCHOOL ARTS IMMERISON (AAI) PROGRAM EMPLOYED APPROXIMATELY 6 TEACHING ARTISTS PER SHCOOL YEAR TO CONDUCT TWO-WEEK RESIDENCIES IN A VARIETY OF ART FORMS. THIS UNIQUE PROGRAM, IN ITS 18TH YEAR, SERVES A MAXIMUM OF 65 YOUNG ARTISTS IN GRADES K-5 BY PROVIDING INSTRUCTION BOTH VISUAL AND PERFORMING ARTS WITH STYLES SUCH AS HIPHOP DANCE, CERAMICS, IMPROV ACTING, AND MIXED MEDIA PAINTING. PARTICIPANTS CHOOSE FROM FULL OR PART TIME OPTIONS. WE OFFER 7 FULL TIME SCHOLARSHIPS TO FAMILIES EACH YEAR. THE SCHOOL AND FAMILY PROGRAMS PROVIDE ART BASED EXPERIENCES TO 1800 YOUTH. THE SCHOOL AND FAMILY PROGRAMS AIM TO PROVIDE PROGRAMS OF HIGH ARTISTIC QUALITY THAT ARE ACCESSIBLE TO ALL CHILDREN IN THE 4 TITLE ONE SCHOOLS. THE ARTSCENTER MAKES ART LEARNING OPPORTUNITIES AVAILABLE TO THESE YOUTH THROUGH DIRECT CONTACT WITH TEACHING ARTISTS FROM A VARIETY OF ART DISCIPLINES. THE ARTS IN RESIDENCE PROGRAM PROVIDED 10 HANDS ON ARTS INTEGRATION RESIDENCIES TO OVER 1200 UNDER SERVED CHILDREN IN 4 TITLE ONE SCHOOLS IN ORANGE COUNTY AND APPROMATELY 18 TEACHERS AND TEACHING ARTISTS. THE RESIDENCIES AIM TO PROVIDE PROGRAMS OF HIGH ARTISTIC QUALITY THAT ARE ACCESSIBLE, HAVE EDUCATION MERIT AND STRENGHTEN COMMUNITY PARTNERSHIPS. THE ARTCENTER'S TWO GALLERIES FOR ART EXHIBITION ROTATE EXHIBITS MONTHLY AND ARE AVIALABLE FREE OF ADMISSION TO ALL. THE NICHOLSON GALLERY, LOCATED INSIDE THE MAIN ENTRANCE, SERVES AS A COMMON AREA FOR PATRONS ON THEIR WAY TO CLASSES OR PERFORMANCES. TWO MONTHS OF THE YEAR, THIS GALLERY HOST GROUPS OF THE COMMUITY AND STUDENT ART. THE REMAINING MONTHS ARE OPEN TO ALL APPLICANTS AND EXHIBITS INCLUDE A WIDE VARIETY OF ARTWORK AND INSTALLATIONS FROM A DIVERSE GROUP OF LOCAL ARTISTS. THE SMALLER CORRIDOR GALLERY ROTATES FOR ALL 12 MONTHS OF THE YEAR. THE SPACE PROVIDES NEW AND EMERGING ARTISTS A SMALLER INTIMATE SPACE TO EXHIBIT THEIR WORK. EACH MONTH, THE 2ND FRIDAY ARTWALK BRINGS HUNDREDS OF VISITORS INTO OUR GALLERIES, EXPOSING ART LOVERS TO THE LABORS OF BOTH NEW AND SEASONED ARTISTS IN A VARIETY OF DISCIPLINES AND ART FORMS. 60261 126521 852546 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 75 0 1 34 1 0 0 0 0 0 0 0 0 0 0 0 0 X 14 14 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 0 1 0 0 X X THE CORPORATION 9199292787 400 ROBERSON ST CARRBORO NC 27510 JACKIE TANNER VICE CHAIR 3.00 X X 0 0 0 MICHAEL FRISCH PAST BOARD CHAIR 3.00 X 0 0 0 BRUCE RUNBERG BOARD MEMBER 2.00 X 0 0 0 HATHAWAY PENDERGRASS TREASURER 3.00 X X 0 0 0 ELLEN MEDEARIS BOARD MEMBER 2.00 X 0 0 0 MICHELLE BOLAS BOARD MEMBER 2.00 X 0 0 0 RIZA JENKINS BOARD MEMBER 2.00 X 0 0 0 EMILY EVENS SECRETARY 3.00 X X 0 0 0 KETA BARNES BOARD MEMBER 2.00 X 0 0 0 HELEN KALISHER BOARD MEMBER 2.00 X 0 0 0 REBECCA MOORE BOARD MEMBER 2.00 X 0 0 0 MARK OTTER BOARD MEMBER 2.00 X 0 0 0 JOANNA FOSTER CHAIR 3.00 X X 0 0 0 BERNADETTE PELISSIER BOARD MEMBER 2.00 X 0 0 0 DANIEL MAYER PAST EXECUTIVE DIRECTOR 40.00 X 14275 0 941 JENNIFER L SHULTZ-THOMAS EXCUTIVE DIRECTOR 40.00 X 54417 0 3509 68692 0 4450 0 0 0 0 0 79750 780217 859967 PROGRAM TUITION 611600 627465 627465 MUSICAL PERFORMANCES 711130 66381 66381 693846 2840 2840 45800 0 45800 45800 45800 101013 0 101013 101013 MISCELLANEOUS 711130 494 494 494 1703960 740140 0 103853 23659 23659 73142 25600 29257 18285 451419 239658 111046 100715 6209 3314 1512 1383 17483 9396 4203 3884 42523 21560 11325 9638 6900 6900 41039 5000 36039 47745 27739 13545 6461 112587 46032 63395 3160 198261 120939 69392 7930 1187 1187 23209 14157 8123 929 19589 8310 10734 545 PROGRAM COST 245984 245984 FUNDRAISING 100153 100153 PERFORMANCE COST 61198 61198 1472287 852546 366658 253083 1859020 1145631 1369265 1297813 292216 338696 4289 25271 5564 4000 7178445 1291580 1557258 5886865 125 3636 5087737 8701912 20179 22121 69750 59137 1209007 4600000 475000 475000 1773936 5156258 X 1411496 1954136 1902305 1591518 3313801 3545654 5087737 8701912 231673 180 0 X X 0 1 X 1 0 X 542421 2371158 667090 1451417 859967 5892053 987880 994558 312054 511631 771200 3577323 1530301 3365716 979144 1963048 1631167 9469376 0 0 0 9469376 70082 68427 22737 20204 48640 230090 70082 68427 22737 20204 48640 230090 81844 103090 6605 494 192033 1682227 3434143 1104971 1989857 1680301 9891499 0.95730 0.95220 0.02330 0.02780 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 3960628 3960628 2957175 1044634 1912541 260642 246946 13696 5886865 DEPOSITS - BUILDING 475000 475000 X 1373119 -330841 -330841 1703960 0 1703960 1141446 -330841 -330841 1472287 0 1472287 PART X, LINE 2: THE ORGANIZATION IS EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 501(C) (3) OF THE INTERNAL REVENUE CODE. HOWEVER, INCOME FROM CERTAIN ACTIVITIES NOT DIRECTLY RELATED TO THE ORGANIZATION'S TAX-EXEMPT PURPOSE IS SUBJECT TO TAXATION AS UNRELATED BUSINESS INCOME. MANAGEMENT HAS CONSIDERED THE TAX POSITIONS TAKEN IN ITS TAX RETURNS AND BELIEVES THAT ALL OF THE POSITIONS TAKEN BY THE ORGANIZATION IN ITS FEDERAL EXEMPT ORGANIZATION TAX RETURNS ARE MORE LIKELY-THAN-NOT TO BE SUSTAINED UPON EXAMINATION. GENERALLY, THE ORGANIZATION'S TAX RETURNS REMAIN OPEN FOR THREE YEARS FOR EXAMINATION BY TAXING AUTHORITIES. THE ORGANIZATION DOES NOT BELIEVE THERE ARE ANY MATERIAL UNCERTAIN TAX POSITIONS AND, ACCORDINGLY, IT DID NOT RECOGNIZE ANY LIABILITY FOR UNRECOGNIZED TAX BENEFITS. PART XI, LINE 2D - OTHER ADJUSTMENTS: DIRECT EXPENSES -307,182. SCHOLARSHIP -23,659. PART XII, LINE 2D - OTHER ADJUSTMENTS: DIRECT EXPENSES -307,182. SCHOLARSHIP -23,659. GALA 1 SCHOLARSHIPS 126 23659 SCHOLARSHIPS TO CLASSES FORM 990, PART VI, SECTION B, LINE 11B A DRAFT COPY OF FORM 990 IS PROVIDED TO THE AUDIT COMMITTEE FOR APPROVAL BEFORE FILING FORM 990, PART VI, SECTION B, LINE 12C ALL POLICIES INCLUDING CONFLICT OF INTEREST ARE ADHERED TOO. EACH YEAR THE BOARD MEMBERS ARE REQUIRED TO FILL OUT A FORM ATTACHED TO THE POLICY AFFIRMING THAT THEY HAVE NO CONFLICT OR DISCLOSING ANY POTENTIAL CONFLICT OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15A COMPENSATION FOR THE EXECUTIVE DIRECTOR AND ANY OTHER OFFICER IS DISCUSSED BY THE ENTIRE BOARD OF DIRECTORS. STEPS TO DECIDING COMPENSATION INCLUDE DETERMINING A RANGE BASED ON COMPARABLE EMPLOYEES IN SIMILAR LOCAL AND REGIONAL ORGANIZATIONS. MAKING AN OFFER WITHIN THAT RANGE AND TAKING INTO ACCOUNT THE CANDIDATE'S EXPERIENCE AND SKILL SET. THE BOARD ELECTS A DIRECTOR TO ACT AS A LIAISON FOR THE PURPOSE FOR NEGOTIATING COMPENSATION WITH THE PROSPECTIVE EMPLOYEE. A FINAL DECISION IS THEN MADE BY THE ENTIRE BOARD. FORM 990, PART VI, SECTION C, LINE 19 THE 990 IS AVAILABLE ON THE ORGANIZATION'S WEBSITE. GOVERNMENT DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. FORM 990, PART XII, LINE 2C: NO CHANGES WERE MADE BY THE ORGANIZATION TO ITS OVERSIGHT OR SELECTION PROCESS. I AM REQUESTING PENALTY ABATEMENT FOR FAILURE TO FILE PENALTIES BECAUSE THE TAXPAYER MEETS THE REASONABLE CAUSE, AS STATED IN IRC 6652(C) (4), REASONABLE CAUSE EXCEPTION, AND REG. 301.6652-1(F), FAILURE TO FILE CERTAIN INFORMATION RETURNS; SHOWING OF REASONABLE CAUSE.IF PENALTY RELIEF IS DENIED, IN WHOLE OR IN PART, FOR THE PENALTIES LISTED ABOVE, I REQUEST A HEARING WITH THE IRS OFFICE OF APPEALS.FACTS AND CIRCUMSTANCESPLEASE TAKE INTO ACCOUNT ALL OF THE FOLLOWING INFORMATION, WHICH MERITS PENALTY RELIEF:BACKGROUNDDURING 2022 THE ORGANIZATION EXPERIENCED TURNOVER IN KEY POSITIONS IN THE ORGANIZATION. IT WAS ALSO RELOCATING ITS OFFICE. THE RECORDS OF THE ORGANIZATION WERE IN A STATE OF DYSFUNCTION. IT TOOK A SIGNIFICANT AMOUNT OF WORK BY THE CPA FIRM TO COMPLETE THE BOOKS AND PREPARE THE TAX RETURN. TAXPAYER'S CLEAN COMPLIANCE HISTORY AND PROMPT ATTEMPT TO COMPLY WITH THE IRS.THE INCIDENT THAT CAUSED THE COMPLIANCE ISSUE IS AN ISOLATED EVENT. THE TAXPAYER HAS CONSISTENTLY PREPARED COMPLETE AND ACCURATE TAX RETURNS, FILED RETURNS ON TIME AND PAID TAXES ON TIME. NO PENALTIES HAVE BEEN ADDED TO OR REMOVED (ABATED) FROM THE TAXPAYER'S ACCOUNT DURING ANY OF THE PREVIOUS THREE TAX YEARS. LAW AND AUTHORITYTHE FOLLOWING TAX LAW OR AUTHORITY SUPPORTS RELIEF FROM THE FAILURE TO FILE PENALTIES.IRC 6652, FAILURE TO FILE CERTAIN INFORMATION RETURNS, REGISTRATION STATEMENTS, ETC.IRC 6652(C)(4) STATES THAT NO PENALTY SHALL BE IMPOSED UNDER IRC 6652(C) WITH RESPECT TO ANY FAILURE IF IT IS SHOWN THAT SUCH FAILURE IS DUE TO REASONABLE CAUSE.REG. 301.6652-1(F), FAILURE TO FILE CERTAIN INFORMATION RETURNS; SHOWING OF REASONABLE CAUSEREG. 301.6652-1(F) PROVIDES FURTHER GUIDANCE AND EXPLAINS THAT THE FAILURE TO FILE PENALTY SHALL NOT APPLY IF IT IS ESTABLISHED THAT SUCH FAILURE WAS DUE TO REASONABLE CAUSE. AN AFFIRMATIVE SHOWING OF REASONABLE CAUSE MUST BE MADE IN THE FORM OF A WRITTEN STATEMENT THAT CONTAINS A DECLARATION THAT IS MADE UNDER THE PENALTIES OF PERJURY, AND SETS FORTH ALL OF THE FACTS ALLEGED AS A REASONABLE CAUSE.IRM 20.1.1.3.2, REASONABLE CAUSETHE IRS PROVIDES PROCEDURAL GUIDANCE ON THE REMOVAL OF PENALTIES FOR REASONABLE CAUSE. IRM 20.1.1.3.2 STATES THAT REASONABLE CAUSE IS BASED ON ALL OF THE FACTS AND CIRCUMSTANCES IN EACH SITUATION AND ALLOWS THE IRS TO PROVIDE RELIEF FROM A PENALTY. REASONABLE CAUSE RELIEF IS GENERALLY GRANTED WHEN THE TAXPAYER EXERCISED ORDINARY BUSINESS CARE AND PRUDENCE IN DETERMINING THE TAX OBLIGATIONS BUT NEVERTHELESS FAILED TO COMPLY WITH THOSE OBLIGATIONS. WE ARE FILING REASONABLE CAUSE UNDER IRM 20.1.1.3.2.2.1. DISCUSSIONTHE FOLLOWING IS A DISCUSSION OF HOW THE TAXPAYER'S FACTS AND CIRCUMSTANCES RELATE TO THE ABOVE-REFERENCED LAW AND AUTHORITY.REASONABLE CAUSE CRITERIABECAUSE THE TAXPAYER'S RECORDS WERE MISPLACED AND INCOMPLETE DUE TO CHANGE OVER IN KEY POSITIONS THE ORGANIZATION HAD TO RECREATE KEY FINANCIAL INFORMATION. ONCE THE ISSUES WERE NOTED THE ORGANIZATION IMMEDIATELY CONTACTED ITS ACCOUNTANT, BANK AND OTHER THIRD PARTIES TO OBTAIN THE RECORDS NECESSARY TO FILE THE RETURN.ORDINARY BUSINESS CARE AND PRUDENCE: MITIGATING CIRCUMSTANCESBECAUSE THE INCIDENT THAT CAUSED THE COMPLIANCE ISSUE WAS AN ISOLATED EVENT, AND BECAUSE THE TAXPAYER MADE IMMEDIATE EFFORTS TO COMPLY ONCE THE CIRCUMSTANCES CHANGED, THE TAXPAYER HAS PROVEN THAT ORDINARY BUSINESS CARE AND PRUDENCE WAS TAKEN.THE CLIENT AND CPA FIRMED WORKED DILIGENTLY TO OBTAIN THE NECESSARY INFORMATION AND TO FILE THE RETURN AS QUICKLY AS POSSIBLE. CONCLUSIONON THE BASIS OF THIS REQUEST AND THE FACTS, LAW AND AUTHORITY CONTAINED HEREIN, PLEASE PERMIT PENALTY RELIEF FROM THE FAILURE TO FILE PENALTY.IF PENALTY RELIEF IS DENIED, IN WHOLE OR IN PART FOR THE PENALTIES LISTED ABOVE, I REQUEST A HEARING WITH THE IRS OFFICE OF APPEALS.IF YOU HAVE ANY QUESTIONS, PLEASE CONTACT ME. I CAN BE REACHED AT 919-489-3369 THANK YOU FOR YOUR CONSIDERATION OF THIS MATTER.SINCERELY,MICHAEL CLONCH, CPANEAL, BRADSHER & TAYLOR