Question: Filing Taxes
We are just starting our PTO and are not planning currently to file for 501(c)3 status. Do we need to file taxes at the end of the year, if so, what tax form do we use?
Asked by Anna1123
Advice from PTO TodayRose H writes:
If you are operating as a non-profit group but are not a 501(c)(3), there is no tax form for you to file.
Here is our our editor-in-chief answered a similar question from another community member a short time ago:
You're in an in between position where your PTO is an independent business but isn't a recognized tax-exempt charity. The IRS would say you need to apply for 501c3 status. They would like all independent PTOs to be registered 501c3's. If you're not a 501 organization, you probably should technically be filing standard business tax forms. There are lots of parent groups in your position, and most of them don't file any tax forms. Our understanding from the IRS has been that the IRS isn't seeking out groups like this to make them pay taxes -- instead they want them to file for 501c3. Standard disclaimer -- I'm not a lawyer or an accountant, and this isn't legal advice. It's just a summary of what we've learned from talking to the IRS and observed from their actions with other parent groups.
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