Should Your Group Be Paying Taxes?

Should you be paying taxes? Probably not. Your efforts are most likely tax-exempt. But should you be thinking about taxes and probably filing an annual tax form? Most likely.

by Tim Sullivan

10/06/2021

Your Group's Legal StatusHow'd you survive April 15 -- tax day? I bet you got your personal taxes in on time, right? But how about your PTO? Is your group on the right side of tax law?



The key question surrounds your legal status. If you are a formal 501(c)(3) organization, then you should also file an annual tax form with the IRS. You won't owe money, but the filing keeps your group's tax-exempt status active.

If you aren't a formal 501(c)(3), then you are most likely operating as more of a club or organization connected to the school or school district, and any tax reporting or information requests would come from the school or district. Basically, if your group doesn't have a status with the IRS, you wouldn't file your own tax forms with the IRS.

Tax and legal discussions can be scary, but they aren't actually as complicated you might think. Read Know Your Group's Legal Status for some great information.

Hope you're getting a big refund!

 

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