Federal Taxes

Although PTA is an organization that operates in the public trust, it must comply with all tax requirements as prescribed for its nonprofit status. As a result, PTAs are required to file federal tax returns depending on their gross receipts (see below).

Beginning with the 2010 tax year (2010-2011 fiscal year), nonprofit tax laws require PTAs with gross receipts normally less than or equal to an average over the last 3 years of $50,000 to file an annual, 990N information report with the IRS.

Unit, council and district PTAs with annual gross receipts normally more than $50,000 and less than $200,000 and total assets less than $500,000 must file Form 990EZ.

Unit, council and district PTAs with annual gross receipts of $200,000 or more, or total assets of $500,000 or more, must file Form 990.

Both the Form 990 and 990EZ have supplemental schedules that need to be filed. If the association fails to file the appropriate schedules, the IRS will not consider the return filed. Currently the penalty is $20 per day.

The forms dated the year the PTA fiscal year begins are the correct forms to use. For example, if the current fiscal year begins July 1, 2010 and ends June 30, 2011, forms for the year 2010 should be used.

Tax Tips Pamphlet No. 18, “Sales and Use Tax Guide for Volunteer and Nonprofit Fundraising Organizations.” California State Board of Equalization, 1020 N Street, Sacramento, CA 95814

PTAs will not provide tax training or offer advice on the preparation or filing of PTA tax returns. It is suggested that PTAs seek the advice of a tax professional knowledgeable about 501(c)(3) returns regarding all tax filings.

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