Question: Tax returns

Hi, our PTO has its own bank account with its own EIN. We do not have 501c3 tax exempt status and we are not incorporated. We do not normally bring in more than $5000. Are we required to file something with the IRS?

Asked by Anonymous

Answers:

Advice from PTO Today

Liz L writes:
Hi - this ended up being an interesting question to pursue! From what we found online, it looks like you do not have to file if your gross receipts are under $5K. But you may be able to qualify for tax-exempt status without applying to the IRS. Check it out:

https://www.nolo.com/legal-encyclopedia/small-nonprofits-qualifying-tax-exempt-status-without-filing-irs-application.html

good luck. Liz from PTO Today

Community Advice

clayboggess writes:
Every state has different rules as far as tax obligations go with school product fundraising. Some states require the collection of sales tax if you’re “acting as an agent” for the seller (i.e. fundraising company). This would be the case for a brochure fundraiser. However, some states don’t require that you pay tax if you order the product online and then resell it. In this case a ‘certificate of resale’. Paying sales tax for products ordered online would not be required because the school has title to the merchandise at the time it is sold (purchaser & seller). You should check with your state’s department of revenue. For more information see The Ultimate School Brochure Fundraising Tax Guide.