It took a few frustrating phone calls (why on earth do they give you an 800 number in the letter that doesn't deal the problem at hand?), and exchanging a bit of documentation, but all is resolved with the PTO owing zero.
All in all I'd have to say my experiences with the IRS these last two years have been pretty positive. Dealing with the penalty folks was much more bureacratic and frustrating (than the tax-exempt department), but they were still helpful and professional.
However, we'll make darn sure to indicate "fiscal year" next time!
I'd like to add my two cents to JHB's dilemma concerning filings and paperwork getting lost in the cracks. My idea is for all the PTO's in our town (there are seven PTO's) to join forces, contribute several hundred dollars each and hire a CPA or attorney specializing in non profit law to complete our filings on an annual basis. This would be on a professional basis and not the parent of a student in order to guarantee continuity. First we have to get the treasurers to find all their paperwork and make sure we are all on the same page. Unfortunately, due to the high turnover of treasurers (with elections happening every one or two years) that may be a tall order. One idea might be for all the treasurers to place their documents, copies of bank statements, etc. in a permanent place like the principal's office.
I think it's important to take this job seriously and to at least educate oneself in what's necessary to run the PTO organization because we are after all responsible for obeying the law.
Thanks for the heads up - I will make sure to fill this part of the Form 990EZ out when I complete our first one. We also have a non-calendar fiscal year end.
I agree that it is usually the treasurer that fills out the forms, but I am trying to stress that it is a Board responsibility to make sure this happens in a timely manner. I have put together a binder for each Board member with tabs for Federal, state, By-laws, Articles of Incorporation, and research. I am putting together a detail of the relevant forms and due dates to put right at the front. It is an on-going process to try and find what works to make sure that things don't fall through the cracks. I like the sign idea also, so perhaps I can find a good spot for that at our school!
On a related matter, I recently presented a workshop to the other PTO's in our district. It was located at the school district admin building, and the finance director was also in attendance. He strongly recommended that the PTO's file for tax-exempt status, and we let them know very clearly that they were not part of the school's tax exempt status. We also talked about having at least annual workshops to help each other out on financial and tax issues. So I think it is beneficial to try and get the support of the school district. They have alot to lose if PTO's get into trouble and I think most of them understand that!
The Treasurer is the likely candidate, but it may vary. Definitely the treasurer should track the deadline, even if he/she is not the person filling out the form. (There may be someone more comfortable with that type of filing or already have expertise with the process.)
We are really trying to document processes and pass information down to the next set of officers. However, I came in to a situation where whatever processes once existed (and I know some were documented) could no longer be found. We had a two year period with key officers who didn't think of documenting as an important focus. Things were very informal, and information definitely was lost.
I got to worrying about this problem this week. In addition to the notes in the treasurer's records, I just typed a nice sign on red cardstock with the key financial deadlines (for us: IRS, Sales Tax, and Bingo Filings) and taped it on the front of our PTO storage cabinet. It's high and out of the way, but very prominent. So at least it's in people's faces - if nothing else.
(I've been back to the site of a job I had 15 years ago - that's even been sold once snce then - and still see a few signs in MY handwriting taped here and there. Sometimes the simplest things work well.)
Thanks for the warning, however it's a day late and a dollar short. Our PTO in past years decided that taxes just didn't need to be filed and they weren't. It has now taken about 2 years, many many phone calls and they finally just waived the fees. Don't give up.
