Most, although not all, of the groups we serve here at MoneyMinder are classified as 501(c)(3). When it comes to asking whether your PTA is tax-exempt, the first question you must answer is whether your group is registered with the IRS as such. The IRS has a convenient tax-exempt organization search if you know your EIN number.
If your PTA is not listed as a 501(c)(3) tax-exempt organization and you would like to be, use Form 1023 to apply. Note that you must have an EIN number in order to apply. If approved, be sure to maintain a permanent record of the tax-exempt determination letter the IRS will send.
If your PTA is tax-exempt, what exactly does that mean?
This status comes with a number of benefits from the IRS, including but not limited to:
- Tax-exempt means your group is not liable to make payments to the government. While this is true of 501(c)(3) organizations, it is important to maintain your status. More on that below.
- People who donate to your group can deduct those donations from their taxes.
- You become eligible for grants that are only available to those with 501(c)(3) designation.
Am I automatically tax-exempt at the state level?
No. Most states require you to file a separate application to become tax-exempt. This IRS web page provides a list of links for each state.
Do tax-exempt PTAs still have to file a tax return?
If you have a 501(c)3 designation from the IRS you must file either a 990N, 990EZ or 990 annually. Which one you file depends upon your annual gross receipts and past history. Learn more about filing PTA tax returns. Many groups have had a tough year with the COVID-19 pandemic. Learn about filing taxes and getting back on track if your group had no activity.
How do I know if/what we have filed in the past? And what happens if we haven’t?
Click here to find your organization and learn what forms have been filed in the past and when. You can also find your Determination Letter on this site.
If your organization does not appear in this database, call the IRS to learn what/how to remedy any past oversights: (877) 829-5500
Maintaining Your Tax-Exempt Status
In order to maintain all of the benefits of being a 501(c)(3) tax-exempt organization, be sure your group is organized and operated according to the mission defined in your bylaws. Any officer who fraudulently uses funds for personal gain can jeopardize your tax-exempt status with the IRS.
How Does MoneyMinder Make Parent Group, PTO & PTA Tax Filing Easy?
Each MoneyMinder category has an IRS Form 990EZ income and expense line. When you’re ready file, running the 990-EZ Report in MoneyMinder is a cinch. It spits out the exact totals you need to fill out on the form.
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