I am the president of a new PTO for Jr High. I have gotten our EIN# and our sales tax permit # but in order to become tax exempt we must have a letter stateing that we are part of the national and/or state PTO. My question is what I need to do to recieve this letter?
Karrissa - Karrissa
That's not exactly correct. A few districts do have regional PTOs that you can join to get tax-exempt status, but there's no national PTO. The way most PTOs become tax exempt is to apply directly to the IRS. You're applying to become a tax-exempt charity under section 501c3 of the federal tax code. To do that, you fill out IRS form 1023, which you can get from the IRS.gov website. You have 27 months from your date of formation to file, and the tax-exempt status is retroactive. The form is fairly detailed, and there's an $850 one-time filing fee for most groups. Our PTO Startup Toolkit walks you through the application question by question. The article 501c3 for PTOs also has some helpful information about the process. Good luck, and please let us know if we can do anything else to help.
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