Perhaps I wasn't clear....
We've been a PTO for many, many years. Long ago we were a PTA.
Several years ago, we started grossing the big bucks (over 10K, more like over 25K).
We filled out the SS-4 but for some reason didn't use the number assigned, or stopped using it. Inadvertently, we 'borrowed' the BOE's ID number and used that for our banking as well as handing out to people.
If we were still a PTA, we would be under the BOE's control and therefore could use their number. But we're not, so we can't.
After contacting IRS about the number found on an SS-4 dated 1994, they said that they have no report. The IRS rep said that if you don't use your number after so many years, they drop it from their system.
Since our PTO isn't listed as a non-profit and the IRS has no record of it, I have to assume that we've been operating under the table.
As for tax exemption, my understanding is that it only applies to sales tax, not income tax, and therefore, whether or not we are tax exempt (which I doubt we are), it still does not absolve us from income tax, unless of course we apply for and are granted non-profit status (paying the $500 since we've grossed over the $10K). Then we have to file a 990 every year, information only.
However, we still have to fess up and file something for the past few years, because both the 8718 and the 990 reference past years.
If penalized, I would expect to petition for abatement, but we can't ignore the past, right? That's tax evasion, isn't it??? Even if we are just a PTO?
Thanks everyone!!