I think that's one of the benefits of PTA: the national organization takes care of a lot of paperwork for you -- but it costs you.
You do have to pay the fee, but as long as you stay up to date, you should only have to pay it once in the life of the organization. Note the IRS wants you to report gross income, not the $1000 net, but all the money that came in. You need to fill out a Form 990 or 990-EZ every year; you may get a fine for failure to file those forms promptly, but usually the IRS will waive the fine if you can show them that you have now established processes to ensure the forms will be filled out in the future. You may also be able to file a simpler form (990-N?) if your gross income is low enough.
- gjcoram
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Filling out the information may be time consuming but is worth it in the long run. You only have to file the 990N once a year and keep records of your financial transactions. The form 1023 will allow you to solicit larger donations from places who want to know that their contributions are tax-deductible (something your PTO can't claim without filing for it). PTA may have done the paperwork for you...but now that you are a PTO you have freedom from PTA to keep your funds local and run the organization according to your own bylaws.
- Mrs Bridges
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