I am a PTO treasurer who is researching what it takes to get 501c3 status. My best advice so far is to review the postings about 501c3 in this forum, and also get yourself a copy of IRS Publication 557, Form 1023, and Form 8718. Also, before you can file for tax-exempt status, your PTO needs a federal tax identification number (use IRS Form SS-4). If you cannot find the forms at your library (I couldn't), call the IRS at 1-800-829-3676 and they'll send you the forms you need. Other than the filing fee of $150 or $500, depending on income, it's just a matter of paperwork. I'm looking forward to completing the process and making our PTO more "legit". Good luck.
Yes we do file a 990. It is required for all organizations that regularly earn more than $25,000. BUT!!!!! Even if you do not earn more than $25,000 it is good to file even a blank 990 with signatures on it. The reason for this is that the IRS can audit you three years back, if you file a 990. But if you do not file a 990 they can audit you back forever weather you earn 25,000 or $20.00. And the problem with telling businesses you are a 501c3 when you are not is --when they list you as a tax write off--the IRS runs your organizations name through the computer and you are not filed as such--the business that thought you were is now in trouble. And yes, the IRS will knock on your door next. It is not just a little matter that you can then apologize for, it is punishable in the court. I am not trying to put forth that you are not doing a fine job of administrating your PTO, just that to 'operate as if you are tax exempt' is asking for more trouble than it is worth.
I am new to all of this bookkeeping and tax exempt stuff. can someone help me out by letting me know how to bet started? I'm aware of record keeping but a little lost when it comes to non -profit tax issues. Thank you in advance for your help.
Based on all the posts I've read, we cannot possibly be the only PTO facing this issue...I'd like to hear from others, please. Gifford, sounds like your group has gotten the tax exempt status? If you, yourself, applied for it then you know what I am talking about. So, you do file the 990? FYI, our records are in order, NOW. We are a financially sound organization. Had the books audited last year, for the first time in years, and received positive comments and good direction. I'm working hard to keep our PTO is top form.
Man oh man. I can not think of a much worse situation to put yourself in! You are not tax exempt, and should not act as if you are. You cannot file a 990, this form is for tax exempt organizations. To not file to become a tax free statis because it is 'long' and 'hard' is no excuse. To play yourself off as tax exempt is pretty much illegal. You need to get this fixed before you get in trouble. The way we are handling our PTO financial records is legally. What is the position of a board if they are not going to do everything they can to make the organization work properly? It sounds like you need to put more work into getting the books in order and quick!
I believe that PTAs must file IRS form 990 (return of organizaton exempt from income tax), but what forms, if any, should PTOs file? We operate as if we are a tax-emempt group, but we do not have that status legally (paperwork has never been filed because it is lengthy, complicated and our financial records in years past have not been accurate or detailed). I would like to know how other PTOs are handling year end Treasury reports and audits. Thank you!
