Our PTO has been in existence for years. Last year, we filed for (and received) 501(c)(3) status. As a prerequisite, we incorporated with an effective date of 2/11/08. We used this date on form 1023.

My question is on the form 990, should I use 2/11/08 as the beginning of my year or 7/1/07? I spoke to the IRS but the rep was confused as to the difference between our actual start date and our incorporation date which we used on the form 1023.

Have any of you encountered this and how did you handle it?

File for your complete fiscal year. You'll want to start out on the fiscal year you want to keep because it's a pain to change it. (filing twice in one year.)

Where on the form/what field? I don't recall it asking for any dates except those that define the tax cycle.

It's probably asking for you to state your fiscal year, so it would be the date that begins your annual business year (not when you were formed). That would be whatever date is designated in your Articles of Incorporation or bylaws. So, for individuals, it's usually 1/1/YYYY.

For a business it's still usually the first day of a given month. I'm guessing yours would be the 7/1/07. Is that your fiscal year starting point?

Maybe I misunderstood your question. You want to file for the length of time, up to 12 months, for which you were in existence for that tax cycle.

So for instance, one of my PTOs was formed in April. Our fiscal year began July 1. For that first tax year, we only included April-June. There were parent group related activities that went on before then, but - technically - our group did not exist then.

Thanks for the responses!

I am planning on filing for the full fiscal year but am unsure if I need to include financial data on activities prior to our incorporation date

Also, what about schedule A - do I go back 4 years since we existed or not since we only incorporated in this fiscal year

Let's keep in mind I'm not a lawyer or accountant, but I've spent some time conferring with the IRS.

One fact I'm sure of. Your current organization only came into existance when it incorporated. Note - if you had filed for 501(c)(3) first and THEN incorporated, your 501(c)(3) status would not have transferred. To the IRS the "old" org would have that status. If the "new" one wanted it, it would need to file separately. So this illustrates how seriously they keep them separate.

Another example, if the previous incarnation had been a PTA unit that you dissolved, would you consider the PTA history the same as the new PTO's history. No - two separate organizations.

I know it's hard to get your head around because it's "the" PTO, same people, same goal. But your organization was born at the point of incorporation. It's not a phase or a transition. It's a completely new entity. I'd file everything as a brand new organization - with projections, but no history.