Internal Revenue Service Publication 557
Tax-Exempt Status for Your Organization, Page 14

Making applications and returns widely available

An exempt organization does not have to comply with requests for copies of its annual returns or exemption application if its makes them widely available. However, making these documents widely available does not relieve the organization from making its documents available for public inspection.

The organization can make its application and returns widely available by posting the application and returns on a World Wide Web page. If the organization has made its application for tax exemption and/or annual returns widely available, it must inform any individual requesting a copy where the documents are available, including the address on the World Wide Web, if applicable. If the request is made in person, the notice must be provided immediately. If the request is made in writing, the notice must be provided within seven days.


Penalties

The penalty for failure to allow public inspection of annual returns is $20 for each day the failure continues. The maximum penalty on all persons for failure involving any one return is $10,000.

The penalty for failure to allow public inspection of exemption applications is $20 for each day the failure continues.

The penalty for willful failure to allow public inspection of a return or exemption application is $5,000 for each return or application. The penalty also applies to a willful failure to provide copies.

The penalty for failure to allow public inspection of an organization?’s contributions and expenditures report is $20 for each day the failure continues. The maximum penalty on all persons for failures involving any one report is $10,000.

Circle C Child DevelopmentCenter


HISTORY of Circle C CDC

The Circle C Child Development Center was founded as an integral part of the master plan for Circle C residents. Believing that having a high quality, state-of-the-art child development center would create a happy family atmosphere and peace of mind for parents, Circle C Ranch included a child development center early in its planning. The safety and well being of a child should be a right according to the planners. The center is unique because of its relationship to the community in which it was established. In order to ensure the highest quality care for Circle C?’s youngest residents, a unique system of funding for the facility was established with the initial residential development at Circle C. Every home builder contracts to donate $1000 to the Circle C Child Development Center escrow fund upon the closing of a new home. The goal of these donations is to provide a mechanism for funding the facility, thus, enabling the majority of tuition to directly fund the operations and programmatic aspects of the Center.



EVERY HOME BUILDER CONTRACTS TO DONATE $1,000 TO THE CIRCLE C CHILD DEVELOPMENT CENTER ESCROW FUND UPON THE CLOSING OF A NEW HOME. THE GOAL OF THESE DONATIONS IS TO PROVIDE A MECHANISM FOR FUNDING THE FACILITY, THUS, ENABLING THE MAJORITY OF TUITION TO DIRECTLY FUND THE OPERATONS AND PROGRAMMATIC ASPECTS OF THE CENTER.

(Conservative estimation) 2,000 home x $1,000 = $2,000,000

Can anyone explain to me why the ?“mechanism?” of this facility could cost two million dollars?

Are the playground equipments made of Karat Gold?

Letter of Circle C CDC


Lisa L Sun
6709 Edwardson Cove
Austin, TX 78749


Circle C Child Development Center
Attn: Board of Directors
5917 La Crosse Avenue
Austin, TX 78739

Dear Sirs,

As a Circle C homeowner and also a citizen of U.S.A., I request you to provide me a copy of the following documents:

-the current 5 years?’ Exemption Applications
-the Income & Expenses Statements from 1992 to 2003
-the Balance Sheets from 1992 to 2003
-the Tax Returns from 1992 to 2003

I expect to receive the above items within ten business days. Thank you.

Sincerely,
Lisa Sun

To Decipher One Sentence


Let us to decipher one important sentence.

The goal of these donations is to provide a mechanism for funding the facility, thus, enabling the majority of tuition to directly fund the operations and programmatic aspects of the Center.

This means.........................

$1,000/per home escrow fund has been used SOLELY for the ?“mechanism?” of the facility.

Majority of the tuition has been used for operational expenses and children?’s programs. Small portion of the tuition has also been used for ?“mechanism?” of the facility.

Let us dig down to the bottom and find out what kind of ?“mechanism?” could cost more than two million dollars.

I will share the information in those documents with all of you after I have received and examined them.