I made a call to the IRS, but they are so busy this morning that I can't get through. I decided I would try to get some answers here again.
In Part VII, question 1, it asks whether we are a successor to another organization. The PTO Today Start Up Guide says to answer "no" to this question. (We are "new" organization due to our recent incorporation, but are really the same group that previously ran our PTO.) My problem arises when I get to Part IX, Financial Data, and I need to say where our money came from. In our current short year (incorporated November of 2007), $15,000 came from the previous PTO bank account and into the new one! How do I fill in the schedule and characterize this cash infusion to our newly incorporated group? Would the $15,000 go on line 1 (gifts??) or membership fees ($5000 of the $15,000 WAS membership fees from the "old, beginning of this school year" group from which we grew)? I don't want to entangle the "old" group in a mess, since they SHOULD have been filing tax returns of some sort!! I know I read in a previous post that the IRS may not even care about this, but I am afraid of creating a nightmare that will be more than it is worth! Has another group faced this problem recently as the form was filled out? I am stuck , once again!!!!
