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).
US nonprofit tax laws require PTAs with gross receipts normally less than or equal to $50,000 to file a 990N e-postcard information report annually with the IRS.
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.
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 for late/missed filings.
The IRS 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, 2019 and ends June 30, 2020, forms for the year 2019 should be used.
It is recommended that PTAs seek the advice of a tax professional who is knowledgeable about nonprofit 501(c)(3) returns as needed. This is a legitimate PTA expense.
