Question: IRS Form 1023

This question was asked 6 years ago, and fits our situation exactly. I posted what they ended up doing to resolve the problem, and I am inclined to do the same. However, this was 6 years ago! Has anyone dealt with this recently, and if so, what did you do? I do not want to open a can of worm ups. "...In Part VII, question 1, it asks whether we are a successor to another organization. The PTO Today Start Up Guide says to answer "no" to this question. (We are "new" organization due to our recent incorporation, but are really the same group that previously ran our PTO.) My problem arises when I get to Part IX, Financial Data, and I need to say where our money came from. In our current short year (incorporated November of 2007), $15,000 came from the previous PTO bank account and into the new one! How do I fill in the schedule and characterize this cash infusion to our newly incorporated group? Would the $15,000 go on line 1 (gifts??) or membership fees ($5000 of the $15,000 WAS membership fees from the "old, beginning of this school year" group from which we grew)? I don't want to entangle the "old" group in a mess, since they SHOULD have been filing tax returns of some sort!! I know I read in a previous post that the IRS may not even care about this, but I am afraid of creating a nightmare that will be more than it is worth! Has another group faced this problem recently as the form was filled out? I am stuck , once again!!!!" The message board said this poster 6 years ago, answered NO that they are not a successor, and put the $15,000 on the balance sheet with a note that the money came from an old group that had never formalized. Thank you so much for any help!!

Asked by big5



Community Advice

big5 writes:
Sorry, my question came through unclear. My question is... has anyone dealt with this recently, or what would you do with the $15,000?

Community Advice

aktheda writes:
Did you ever determine how to handle this? Our PTO is in exactly the same position, and I'm not finding anything on PTOToday to help decide where to list those funds from the PTO prior to incorporation.

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