DOL changes LM-30 deadline to May 15
(The Calibre CPA Group, PLLC, issued the following bulletin to labor organizations on March 8.)
In 1963, the Department of Labor (DOL) first approved Form LM-30 "Labor Organization Officer and Employee Report" and for over 40 years the Form has remained essentially unchanged. Recently, the DOL has taken steps to revise the Form and is actively enforcing filing for union officers and employees.
The Form must be received by the DOL within 90 days after the end of the officer's or employee's fiscal year, typically December 31. Therefore, the 2005 filing must be completed on or by March 31, 2006. Although the DOL has no authority to grant extensions of the statutory filing deadlines, the Office of Labor-Management Standards (OLMS) recently granted a grace period so that reports filed on or before May 15, 2006 will be considered "on time." The OLMS will not take any enforcement action unless the report is received after this date. Non-filing individuals will be subject to criminal penalties for willful failure to file.
Since another filing year has ended and the Form is due, we thought this would be a good time to review the filing requirements. We will also review the reporting change that was made by the DOL in November 2005.
Who Has to File?
Other than an employee exclusively performing clerical or custodial services, Form LM-30 is required to be filed by any officer or employee of a labor organization who has reportable transactions or interests. Remember, the Form is not filed by the labor union and is not a filing of the labor union. Rather, it is an informational declaration of reportable transactions filed by an individual of the union. No filing is required if you have no reportable transactions.
Reportable transactions or interests can occur when an officer or employee or his/her spouse or minor child, either directly or indirectly, hold any legal or equitable interest or engage in any transactions (including loans) of the type described in Section 202 of the LMRDA. Section 202 of LMRDA lists six types of reportable transactions or interests involving dealings with three specific groups of employers, businesses, or individuals, as follows:
A. Any employer whose employees your labor organization represents;
B. Any business which deals with the business of an employer whose employees your labor organization represents or is actively seeking to represent, and any business which deals with your labor organization, or with a trust in which your labor organization is interested; or
C. Any employer (other than an employer covered in groups A and B above) or any labor relations consultant to an employer.
Subsequently, Form LM-30 is divided into the above groups of entities. Most union officers or employees may have reportable transactions that will require filing from group B. Transactions will include meals, entertainment, and gifts from the service providers to the union and from service providers to any trust in which the union is interested.
There is a "de minimis" exemption to the reporting requirements of Form LM-30. Guidance previously issued by the OLMS described a de minimis item with a value of $25 or less. In addition, the item given must be "under circumstances and terms unrelated to the filer's status in a labor organization" and must be "sporadic or occasional."
In November 2005, the OLMS increased the dollar amount of the de minimis exemption to $250. This new exemption amount applies to your 2005 LM-30 filing. However, if the aggregate value of multiple transactions from a single employer or business to a single union officer or employee exceeds $250 in a fiscal year, the transactions will no longer be treated as de minimis and the aggregate value of the transactions must be reported in detail on the LM-30. Gifts or loans from multiple employees of one employer should be treated as originating from a single employer when calculating whether the $250 threshold has been exceeded.
Revised Form LM-30?
On August 29, 2005, the OLMS published a proposed revised Form LM-30 and instructions, designed in a similar format to the revised Form LM-2. The comment period for the revised Form and instructions expired on October 28, 2005. The OLMS then extended the comment period for 90 days (and this extension expired on January 26, 2006). To date there has been no information from the OLMS concerning the comments received or when a revised Form will take effect. Until we hear further from the OLMS, we recommend union officers and employees use the original Form. This version of the Form shows an expiration date of November 30, 2006 on the top right-hand corner.
Similar to Form LM-30 filers, employers will now have to file Form LM-10 "Employer Report" with the DOL disclosing certain specified financial dealings with a union or officer, agent, shop steward, employee or other representative of a union. The LM-10 is due within 90 days after the year end of the employer. However, the OLMS has also announced a grace period for Form LM-10 of May 15, 2006 for employers with a December 31 year end. Although the LM-10 is not identical to the LM-30 it will report much of the same information that is required on the LM-30.
Resources and Reminders
Additional information about Form LM-30 can be found on the DOL website at www.dol.gov/esa/olms_org.htm. On the right-hand side of website is a section for "Forms Download." Under this heading, click on "All Other Forms." Scroll down the page to the Form LM-30. From here you can download a PDF or HTML version of the Form and its instructions. You can also find various articles about the Form, examples of reporting, and how to file it under the "Quick Links" section of the home page.
As a final note, remember that if you have any reportable transactions or interests the LM-30 must be received by the DOL no later than May 15, 2006 for the year ended December 31, 2005.
About Calibre CPA Group
Calibre CPA Group was founded on a commitment "to provide services of a superior calibre." Our firm is staffed with over 80 employees who provide value-added audit, accounting, tax, consulting, and technology services to the labor union community.
It's through our experience working with hundreds of labor organizations at the local, regional, and national levels, that we've developed a familiarity with best practices in internal, administrative, and accounting controls. Our specialized audit programs are focused on identifying recommendations pertaining to strengthening internal controls and enhancing administrative efficiencies.
For more information about our firm and our unique services for organized labor, please visit our website at www.calibrecpa.com or call (866) 464-2839.
© 2006 Brotherhood of Locomotive Engineers and Trainmen