I haven't had to file the 990 yet, and I'm not a CPA, but I have had general experience with tax filings. Let me clarify something from the posts above. You DO have to record your gross amount (i.e., whatever you took in) as revenue. But you would also record what you paid for the item as an expense, typically referred to as "Cost of Goods Sold". (There may be other expenses as well such as mailings or advertising or supplies.)
The difference (your NET amount) would be what would potentially be taxable - although on a 990, it's pretty much just an informational return. The point is, you do need to show BOTH pieces of information, not just the "profit".
Regarding filing taxes. This is what I've been told by the IRS.
1) If an organization is a 501(c)(3) and makes more than $25,000 GROSS it needs to be filing the 990EZ/990. (Note, there are some good reasons to file, even if you are below the threshold.)
2) If an organization is not a 501(c)(3) and makes more than $5000 a year, it is supposed to be filing an annual return with the IRS, probably as a regular corporation.
There are some other postings on this topic with more information, so you may want to do a search and some reading. You may very well want to consult an accountant to figure out your exact situation.
I am currently servinfg on our schools pto board, our treasurer has been a no show throughtout the year and myself and the president have kinda 'filled in the blanks'. I was told by another school's pto president that they did not file anything with the irs. (our board are all first timers and the previous board did not leave us anything to go by!) can someone please fill me in on the procedure of filing these tax forms and if they are required by all pto groups. I was told if everything purchased through pto was given away as gifts then no filing was required. please help, I want to do this right. thanks!
We have a CPA do our 990 when we need them done. According to her and all the treasury training I have had through PTA it is my understanding that, to put it in simplest terms, "you must report all many that goes through your hands". For example, when we do a brochure sale, we must report the total amount that we count/take in/ deposit, NOT the amount we keep (profit) after we pay the fundraising company or deduct our other expenses (we also kick in prizes for incentives over and above what the company does). Hope I have helped you.
I am attempting to complete our PTO's 990. After holding for the IRS for over an hour, I'm wondering if anyone can help....We purchase scrip (store gift certificates) at a discount and then sell them to parents at face value (so we make a profit of 2 -20%) On the form 990, gross receipts section, do I report the gross amount we received from the parents (the face value of the scrip) or the profit amount? It means the difference between the 990 and the 990EZ for me...thanks!
