Question: Applying for an EIN

We are in the process of starting a new PTO for a new middle/high school. New tax laws require a social security number to be associated with an EIN number. New PTO organizations cannot get a checking account without an EIN number. Is there any way around this? No individual wants to have their social security number linked to a PTO organization. This would make an individual personally responsible/liable for a PTO. Does anyone have any experience with a new PTO start up under this new IRS rule?

Asked by megarrison

Answers:

Community Advice

megarrison writes:
This is a follow up to my question. I have read other answers to similar questions, and all state that just because you give your social security number when applying for an EIN does not mean that you are personally responsible. My CPA disagrees with this and says that linking mine or anyone else's social with the PTO would absolutely make you personally responsible. Is there any way around this?

Advice from PTO Today

Rose H writes:
Hi there,

We don't believe there is a way around it if you want to be set up as an independent group. The SS # is required to prevent people from setting up dummy corporations with no real purpose other than to conceal what's really going on (often money laundering). The IRS says the social security number is for identification purposes only. The person who gives his social security number on the application isn't liable or responsible for the group's activities in any way. It's just a way to discourage illegal activity.

Rose

Community Advice

val.ann84@gmail.com writes:
Hi megarrison were you ever able to find a way around it or what was your solution. My childs school is starting a PTO from scratch and is facing the same issue no one wants to tie their social to the pto ein ?