Question: Misuse of PTO Tax ID #

I am the treasurer of a small PTO group and we have a group of parents who are using our EIN to apply for grants, then withholding the proceeds and paperwork for the grants. As the treasurer this information is supposed to be reported to the IRS as income, correct? Any ideas on how to handle this? Our accountant says to report them to the district attorney but that seems harsh. Help!

Asked by TCollins

Answers:

Advice from PTO Today

Rose H writes:
Hi TCollins,
This is wrong, and, based on your description, possibly illegal. These folks are keeping the proceeds? Is any of this being used on behalf of your PTO? You need help with this. Explain what is going on to the school administration and they can help you determine if local authorities need to be brought in.

Good luck with this,
Rose C.