Who are you working with on this? I'd strongly recommend finding an accountant or tax attorney who specializes in nonprofits to help you through this process. If you've applied for reinstatement, you may get most of your money back from the IRS. But it will help to have an experienced advocate. In addition, one of the challenges with the IRS on tax-exemption questions is that you often get a different answer depending on which agent you're talking to. You want someone who can help you interpret at this critical juncture.
Another issue is that he IRS is incredibly far behind at the moment in processing applications -- we've heard recently of groups waiting 10 months or more for their determination. This creates a real hardship for groups like yours that are forced to file corporate returns in the meantime.
I don't have an answer for your question on deductions, but I hope you will find someone to help you through this difficult situation. Best wishes from all of us at PTO Today. Please let us know how things go.
- Craig
Links in this post:
Assuming you gave the money to the school for a specific purpose, the expense would be listed by that purpose, not as a charitable gift. For example, if you gave the money to the school to cover the cost of field trips, then your expense line is listed as "field trips," not as a charitable contribution. Teacher appreciation is probably a little bit trickier, depending on what you spend your money on--most of that will probably fall into meals/entertainment, and there are limits on that.
- mum24kids
Links in this post: