Q&A

How to "get legal" after 18 years

We've operated for many years informally, calling it a PTO, but have grown from tiny in #'s and $'s to quite large - well over $5000/yr. We want to raise more to build a track this year. We never incorp'd. We're not a 501c3. We have our own bank acct. Will we have to file for many previous years to get "legal?". Will we face fines if the IRS looks back at the years that we didn't file any forms?
- Oubocespto

If you initiate the process of applying for 501c3 (vs the IRS contacting you first), it's highly unlikely you'll get into any trouble. The IRS has told us that they are primarily interested in getting PTOs to file, not in penalizing them for not filing in the past. The cleanest way for you to apply is probably to incorporate first. The IRS considers an organization new on the date of its incorporation. If you don't incorporate, you will need to supply financial information from a few years previous to your application. If you haven't seen it yet, I recommend our PTO Startup Toolkit. It walks you through the 501c3 application question by question. The toolkit is free to PTO Today Plus members or can be purchased for $39. Good luck!
- Craig
Links in this post:

PTO Startup Toolkit: https:/classic.ptotoday.com//startup-guide

PTO Today Plus: https:/classic.ptotoday.com//plus