Question: Tax Exempt Status

I have been involved with the PTO for 5 years now, and was told we were tax exempt. We have done fundraisers that require an ein number, that we gave and we didn't have to pay taxes. I am now discovering that in 2010 we are re4quired to fill out a 501c3. My question is doI need to notify the businesss I gave the number to, or if I get on the non profit status,, will that take care of previous purchases?

Asked by 252328cheek

Answers:

Advice from PTO Today

Craig writes:
The issue is whether or not the donations given to you are tax-deductible for the donors. If your group isn't 501c3, then the donors can't deduct the donations. If you told donors that your group was 501c3 and you're not, you do need to notify them of that fact (especially large donors). They may need to file amended tax returns.

First, check with the IRS—if you file within 27 months of the date your group is formed, your status will be retroactive to your start date. But if your group is older than that, chances are the status will only be retroactive to the date you submit the application. You can reach the IRS help desk for exempt organizations at 877-829-5500.