Gee, this is confusing. I'm going to call the bank on Monday and see what we were registered under. I did speak with a PTO president at another school and she said that her group basically used the PTA account for output and opened a new account for the PTO and put new funds there (as the fundraising was done under the new PTO). Anything left over at the end of the year they sent to the PTA.
One thing I will say is this, last year we never even sent in the dues (2004-05) according to the former treasurer. We were out of school for three weeks after Hurricane Ivan and had just completed a fundraiser when we left to go home for the day. In the confusion of finding all the fundraising stuff (that was moved when a National Guard Unit stayed at the school) and just, well being crazy she forgot. On top of this we never heard a word from the state or national level. Not "how's it going, do ya'll need anything, etc". Not even when they didn't get our dues. Course, we didn't collect much money that year either as our main membership drive was cancelled due to the storm.
I'm going to keep plugging along and make sure this group is on the up and up and not responsible for the mistakes of any past ones.
What Tim has said is correct; this is a PTA problem that doesn't really have any bearing on the new organization.
New PTAs are sort of automatically covered by their state's exemption, but the state office has to remember to report them as being part of the state organization. Filing of tax returns is the responsibility of the local unit after that point.
It's possible that Dawn's group wasn't large enough to require filing of the 990; that may be why there are no copies of returns. Proof of exemption isn't necessarily a piece of cake, either...it's difficult to get a copy of a letter from the IRS confirming that a local unit is exempt; I'm not sure why. In our state, we get a letter from the state PTA on their letterhead stating that we are included in their exemption, and then a copy of the state's determination letter--that's what we use as proof.
If there is an issue, the IRS is going to look to the state to get it resolved if the local unit doesn't exist anymore.
I was under the impression that it is not easy to disband a PTA. It might be that whatever money is in the account has to go to the state org and your new OPTO will be starting from scratch. I have no personal experience in this area, but that was my impression looking up PTA vs. PTO on this site a couple of years ago.
If you are starting a new PTO, make sure you you do it right fromj the start - get your own EIN, generate a charter, get your 501c3. Good luck
Tim, I need some clarification about Dawn's situation. Her original group was a PTA, right? I thought one of the benefits of being a PTA is that the filing paperwork is done at a higher level...or is that only for your initial 501c3 status? Does the local PTA chapter still need to file its own 990/990EZ each year? If Dawn's PTA is known to the IRS as a 501c3 (because it was set up under an umbrella status, or by the county unit, or whatever the right reason), and the group hasn't filed their annual returns, isnt' the group in a pickle? I guess if the group disbands, there won't be any group to pursue, should the IRS ever come a callin'.
I agree, the new group should do things right from the start. And if the old group was an unincorporated unregistered entity, you can let it quietly fade away. But isn't it a 501c3 by virtue of being a PTA?
Because of your transition, you're actually in better shape than most. Your PTO is a completely different entity than your (now defunct) PTA.
So the mistakes/misses of the old group are on the PTA. You folks may want to clear those up, if you desire. Might be nice to really tie up loose ends, but that's up to you. Provided nothing untoward occurred and the funds of the PTA were used as they should have been -- then you should be fine leaving things as is.
For your new PTO, start doing things well now and you're in great shape. This is year 1.
Our PTA recently decided to become a PTO and are taking the steps to change over now. However, it has come to our attention that our past boards have not filed tax returns and we can find no information regarding 501c3 status. My treasurer is currently looking through past years but so far nothing. I emailed a past president and am hoping for a response. The treasurer from 2003-04 and 2004-05 left at the beginning of the year due to personal problems. I asked her about this and she just shrugged and said "we didn't file". I was on the board last year, but was new and we basically had no guidance. Our President, while a great person was very busy. I just feel very lost and am afraid that this year's board is going to pay the penalty for the past. What do you suggest?
I was on the board last year, but was new and we basically had no guidance. Our President, while a great person was very busy. I just feel very lost and am afraid that this year's board is going to pay the penalty for the past. What do you suggest? 
