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Originally Posted by ecuepto
We are a new PTO group and I need to know if we need to do our taxes?
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That's a much bigger question than it may seem. First, there are two levels of possible taxes:
[B]Sales Tax[/B] (controlled by your state) - An exemption allows you to purchase qualified items tax free and forgo collecting/remitting tax on the taxable items you sell (t-shirts, school supplies, whatever the rules in your state say are taxable. So for intance, in Texas, our exemption qualifies us to run 2 tax-free fundraisers (days) a year. Obviously, we pick the biggest ones. But for everything else, we track amounts and file sales tax with the state comptroller's office, just like any other business.
[B]Federal Income Tax[/B] (IRS) - If you are set up properly as a 501(c)(3), then you don't generally OWE any taxes but you are required to file an informational report. It may be as small and the "e-postcard" or a form (990EZ or 990).
So if you simply "exist" and aren't officially on anyone's radar - that's the problem. You conduct business and have transactions, bringing in revenue and incurring expenses. The PTO isn't an individual. It's not officially a charitable organization. What's left is that technically, you are just considered a business like any other. So theorectically you'd file as a business. But that being said - I've never heard of a PTO doing so.
If they operate "off radar", they tend to file nothing.
You may want to do some more research on this site about 501(c)(3) organizations.
Compliance Guide for 501(c)(3) Public Charities
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