If you can't find the records going back far enough to figure out what really happened, yes, you can just start all over again. (Someone on here--I think JHB--has gone through that.) Sometimes that's the easiest and cleanest.
There are a couple of things you need to figure out. One is whether you are incorporated. If you were at one point, it's possible that the form you were supposed to have been filing is one with your state, and what you have really lost is your status as a corporation. If that's the case, it's usually pretty easy to get that back. (If you're not incorporated, I would highly recommend it--will help protect you against liability issues your school's secretary referenced--albeit overly dramatically, IMHO.)
The other is to figure out what your status is with the IRS. You should have an EIN, or tax ID number. Call the IRS and ask them how they show you as set up. It's possible that the form you were supposed to file was a 990, which is the annual information return. Generally, you need to file that every year that you have more than $25k in receipts. If you didn't file that every year (rightly or wrongly), you may be listed as inactive, which doesn't necessarily mean you lost your tax exempt status. If you were supposed to be filing the return every year, but haven't, then one possible course of action is to go back and file the missing returns. But whether you have the ability to do that would depend how many years are missing and what kind of records you have. There are also financial penalties that would need to be factored into this.
Anyway, there are lots of options here. In the interest of keeping this somewhat simple, I'd start with those two phone calls and see where that gets you in terms of figuring out what status you really have "lost." You might also ask around and see if you have a parent in school who is a corporate attorney that would be willing to help you through this.
Let me start by saying this is a great website with tons of information from all of you very caring informed people. Now for my problem...
I have participated in our PTO for about four years now. Last year I was the Vice-President. We have not at any time discussed our tax exempt status or whether or not we are a PTA, PTO or Parents Club. My problem is that I was elected to President of the "PTO" this week and afterwards was informed by our school secretary that I could "go to jail or be sued next year" if I do not straighten out our tax-exempt status with the IRS. (She is a bit dramatic, but usually quite knowledgable). I have done some checking and our bi-laws indicate that at one time we were tax-exempt, but at some point in time the board stopped sending in some type of form and lost that status. I am not quite sure what to do about this for the next year. We have about $10,000 in our general fund right now. Are we allowed to have money before we file again? Can I just start the process over and write new bi-laws, etc?
I am so clueless about this issue.I wish I would have known about this problem a little sooner, I would have been running so fast from that school on election night!! I just don't want to start off on a bad foot and make this more difficult than it needs to be.
Any help you can give me, I would appreciate.
Thanks
Michelle
