All funds released through our fiscal sponsorship program are considered taxable income according to the IRS. The legal entity is the individual or business entity responsible for reporting the income we disburse on their tax return to the IRS.
For detailed information on requirements for filing, see our policies for Legal Entity Requirements and Tax Filing.
Fractured Atlas STRONGLY recommends that you find a good accountant as soon as your sponsorship has been approved, if you haven’t done so already. Depending on the type of business, you may need an accountant who specializes in independent artists/freelancers or you may need an accounting firm that specializes in corporations. It is each project’s legal responsibility to properly and accurately complete any necessary tax returns, which is why finding a good accountant is encouraged. Our staff can sometimes provide general information regarding taxes, but we are not accountants and we can’t provide tax advice.
The way you file a tax return for the funds released to you depends on many factors, including the type of legal entity responsible for the funds. We do offer basic tax information for your accountant, which you can find under My Fiscal Sponsorship > Program Guidelines >Tax Information for Your Accountant. This information may help you learn how to report the income released from Fractured Atlas on the entity’s tax returns.
If you do not already have an accountant, check out the “Expert Help” section of the “My Fiscal Sponsorship” page for reference to accounting services.
Fractured Atlas staff are not licensed tax professionals and cannot give tax filing advice, you should contact a licensed accountant or tax lawyer to be sure you can write off your expenses for your specific filing status.