Yes, but as a new organization, you get a new EIN. It's not that you are hiding who you are. You are simply letting the old organization expire and starting fresh.
We faced a similar situation several years ago. Previous officers said (believing it to be true) that we were an established non-profit. Like you - I learned they had absolutely no clue what that meant and merely repeated what someone told them.
After talking to the IRS about options, we chose the "start fresh approach". I didn't have access to records or sufficient information from past years. (And frankly, I wasn't all that crazy about cleaning up someone else's mess.) We started a new organization that operated legitimately from that point.
Regarding a comment earlier in this thread, don't confuse the state and federal levels of this. The process is (abbreviated):
Get EIN from IRS (your tax ID, can do it online or via phone, no cost, instant)
Start organizing your group - structure, bylaws, etc.
Incorporate - done at the STATE level. Optional but has benefits.
File for 501(c)(3) status with the IRS - complex, $850, takes awhile
Investigate Sales Tax Exemption at your state level
As far as getting help... The process takes some due diligence, but it is doable without professional help. Especially if you get the kit from PTO Today or at least consult with some of the more veteran members in the Forums. If you could get legal/CPA services donated, that would be wonderful. But I wouldn't PAY someone to file for you. You can the expertise/help you need here from other PTOers.
I feel your pain, Our PTO not only wasn't ever a non-profit and has been reluctant to gain that status due to the work and cost involved. But I cannot morally be a part of a group that isn't following the rules. So I started by reaching out to another PTO in my district and they graciously offered to help me every step of the way to be come a non-profit. I expect to file next month- fingers crossed!
I met with an attorney once I discovered the PTO was advertising itself as a non-profit when it wasn't even in existance according to the state and federal government. The attorney said we should promptly start paperwork to earn compliance. Treat the paperwork as if you are a new entity- because in the eyes of the government you are.
The first thing I had to file as an organization with the secretary of state. Each state likely has different rules. It was pretty easy.
Then I had to fill out the 501c3 application. I highly advise getting help on this if you are not an attorney.
Once you mail it with your $850 check it can take months to receive a Letter of Determination from the IRS.
Then every year you must file taxes.
Just know you're not alone in discovering that your parent-teacher organization had been non-compliant and basically operating outside of the law for decades... we were too.
That's the problem---this organization has never had non-profit status at all. All of the past board members I have talked to just assumed that they did.
I have searched for financial records--and can you believe it? I only have 2 years worth.
So we can't just update, the PTO has been operating as a business since it never filed for non-profit status---and not paying taxes.
I am thinking that since the previous boards did not keep good financial records, and they are no where to be found, that we should just dissolve the current organization and start fresh.
We are consulting an attorney next week......I'm just curious as to the liability. Who is ultimatly responsible for the failure to pay taxes? And how much would they be?
Stressed out and some people are about to walk out. We can't believe this was dumped in our laps.
Oh, and in regards to your 501C status, just contact your state's Secretary of State for corporations and nonprofit status and they can tell you what you need to do to reinstate your nonprofit status.
Typically you will have to pay at penalty fee of around $50, plus your standard filing fee of about $35.
Nonprofit status must be renewed annually and typically all that is required is that a new form with current board members' name, board position, address and phone number and renewal fee be mailed to your Secretary of State.
The form can be found online and printed out for you to complete and submit with payment.
