ecuepto;145090 wrote: We are a new PTO group and I need to know if we need to do our taxes?
That's a much bigger question than it may seem. First, there are two levels of possible taxes:
Sales Tax (controlled by your state) - An exemption allows you to purchase qualified items tax free and forgo collecting/remitting tax on the taxable items you sell (t-shirts, school supplies, whatever the rules in your state say are taxable. So for intance, in Texas, our exemption qualifies us to run 2 tax-free fundraisers (days) a year. Obviously, we pick the biggest ones. But for everything else, we track amounts and file sales tax with the state comptroller's office, just like any other business.
Federal Income Tax (IRS) - If you are set up properly as a 501(c)(3), then you don't generally OWE any taxes but you are required to file an informational report. It may be as small and the "e-postcard" or a form (990EZ or 990).
So if you simply "exist" and aren't officially on anyone's radar - that's the problem. You conduct business and have transactions, bringing in revenue and incurring expenses. The PTO isn't an individual. It's not officially a charitable organization. What's left is that technically, you are just considered a business like any other. So theorectically you'd file as a business. But that being said - I've never heard of a PTO doing so.
If they operate "off radar", they tend to file nothing.
You may want to do some more research on this site about 501(c)(3) organizations.
