Question: EIN

We are in the early stages of switching to PTO from an inactive PTA. We need a 501c3 or EIN to open a bank account. The 501c3 is currently 1-2 year wait. All the volunteers are leery of starting an EIN with our own personal social security number. Are we personally responsible for the EIN by doing that? Will it change our personal taxes at home?

Asked by juliewebb83

Answers:

Community Advice

mum24kids writes:
You just need the EIN to open the bank account, not the 501(c)3 designation. And no, putting your SSN will not change your personal taxes. I can absolutely guarantee this, because between setting up accounts for soccer teams, lacrosse teams, softball teams, PTOs, booster clubs, and things I've probably forgotten by now, I have personally filled out at least 10 SS-4s over the last 10 years or so.

Advice from PTO Today

Craig writes:
Mum24kids is right -- the IRS tells us the SSN is simply a way to prevent fraud, particularly when people are setting up multiple dummy companies to hide wrongdoing. It doesn't make you responsible in any way for the organization's operations.

Regarding the 501c3, be sure to fill out the new form 1023 EZ. It's easier, cheaper, and the wait times (according to the IRS) are significantly shorter for approval compared to the full form 1023.