Ahh, but that's the rub - it's not just for those who have formalized. It used to be:

501(c)(3) and at least $25,000 gross >>> file annually

Now, it's simlply:

501(c)(3) >>> file annually (either e-postcard or 990/990EZ)

On these boards, we tend to think of the 501(c)(3)'s as only those who submitted the paperwork. (And I only recently fully understood this myself. See link and definition below.) But there's that entire set of informal 501s.

The little ones (less than $5000 gross) never had to file an annual return before, but now they do.

We'll still have that large number of PTOs that doesn't fit in either category and is operating "off radar". And that's going to be interesting...continue that scenario and hope no one notices, file an annual return by mistake - calling attention to the fact they operate illegally, or take the plunge and formalize.

I forsee many well intentioned treasurers in this "off radar" category filing and "outting" their organization. It will be interesting to see how the IRS starts handling it.

A 501(c)(3) is a tax-exempt organization that:

1) received a Ruling/Determination Letter from the IRS awarding them this status based on successful filing the Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code (form 1023)

OR

2) normally has annual gross receipts of not more than $5,000 (see Gross receipts test) and meets all the requirements of section 501(c)(3). These organizations are exempt automatically.

JHB - thank you for once again helping us all make sense of the IRS. One thing for readers to remember: the documents JHB is referring to (the e-postcard and the 990's) are applicable to groups who have formalized their PTO by filing for 501(c)(3) status with the IRS. No doubt there are thousands of PTOs around the country that haven't filed for 501(c)(3), even if they"should" according to IRS guidelines. Getting your 501(c)(3) designation comes before you worry about filing any sort of year-end tax form. So if your PTO isn't an official 501(c)(3), you might want to do more research in that area. But don't be looking for the e-postcard or 990/990EZ because the IRS doesn't know you exist.

I thought the questions on the 1099-N (e-postcard) might also be of interest. They basically ask for 10 pieces of information.

Organization’s legal name –
An organization’s legal name is the organization’s name as it appears in the certificate of incorporation or the organization’s application for Federal tax-exempt status, unless a request was previously submitted to the IRS to have the name officially changed.

Any other names your organization uses – If the organization is known by or uses other names to refer to the organization as a whole (and not to its programs and activities); commonly referred to as Doing-Business-As (DBA) names, they should be listed.


Organization’s mailing address – The mailing address is the current mailing address used by the organization.


Organization’s website address (if you have one).
– The mailing address is the current mailing address used by the organization.

Organization’s employer identification number (EIN) –

Every tax-exempt organization must have an EIN, sometimes referred to as a Taxpayer Identification Number (TIN), even if it does not have employees. The EIN is a unique number that identifies the organization to the Internal Revenue Service. Your organization would have acquired an EIN by filing a Form SS-4 prior to requesting tax-exemption. The EIN is a 9-digit number and the format of the number is NN-NNNNNNN (for example: 00-1234567).

If you do not know your EIN, you may be able to find it on the organization’s bank statement, application for Federal tax-exempt status, or prior year return..

Please note that the EIN is not your tax-exempt number. That term generally refers to a number assigned by a state agency that identifies organizations as exempt from state sales and use taxes.

Name and address of a principal officer of your organization –
Usually president, vice president, secretary, or treasurer – often specified in the organization’s by-laws.


Organization’s annual tax year –
Like any taxpayer, exempt organizations must keep books and reports and file returns based on an annual accounting period called a tax year. A tax year is usually 12 consecutive months that can be either calendar year or fiscal year and is often specified in the organization’s by-laws.


Answers to the following questions:

Are your gross receipts still normally $25,000 or less ?

Has your organization terminated or gone out of business?

I thought the questions on the 1099-N (e-postcard) might also be of interest. They basically ask for 10 pieces of information.

The e-Postcard is easy to complete. All you need is the following information:


Organization’s legal name – Any other names your organization uses – If the organization is known by or uses other names to refer to the organization as a whole (and not to its programs and activities); commonly referred to as Doing-Business-As (DBA) names, they should be listed.

Organization’s mailing address – The mailing address is the current mailing address used by the organization.

Organization’s website address (if you have one).

Organization’s employer identification number (EIN) –

• Every tax-exempt organization must have an EIN, sometimes referred to as a Taxpayer Identification Number (TIN), even if it does not have employees. The EIN is a unique number that identifies the organization to the Internal Revenue Service. Your organization would have acquired an EIN by filing a Form SS-4 prior to requesting tax-exemption. The EIN is a 9-digit number and the format of the number is NN-NNNNNNN (for example: 00-1234567).
• If you do not know your EIN, you may be able to find it on the organization’s bank statement, application for Federal tax-exempt status, or prior year return..
• Please note that the EIN is not your tax-exempt number. That term generally refers to a number assigned by a state agency that identifies organizations as exempt from state sales and use taxes.

Name and address of a principal officer of your organization –

• Usually president, vice president, secretary, or treasurer – often specified in the organization’s by-laws.

Organization’s annual tax year –

• Like any taxpayer, exempt organizations must keep books and reports and file returns based on an annual accounting period called a tax year. A tax year is usually 12 consecutive months that can be either calendar year or fiscal year and is often specified in the organization’s by-laws.

Answers to the following questions:

• Are your gross receipts still normally $25,000 or less ?
• Has your organization terminated or gone out of business?

The IRS has posted a full set of Frequently Asked Questions (FAQs) about the new 990-N (e-Postcard) filing requirement. Listed below are some key excerpts.

Who must file Form 990-N (e-Postcard)?
... most small tax-exempt organizations whose gross receipts are normally $25,000 or less must file Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations not Required To File Form 990 or 990-EZ. Before this law was enacted, these small organizations were not required to file annually with the IRS. The first filings are due in 2008 for tax years ending on or after December 31, 2007.

What organizations are ineligible to file the e-Postcard?
...Tax-exempt organizations with annual gross receipts that are normally greater than $25,000 must file Form 990 or Form 990-EZ...

How do I file the e-Postcard?
The e-Postcard is filed electronically by answering fewer than ten questions in an online form ....The form must be completed and filed electronically. There is no paper form.

How much does it cost to file the e-Postcard?
Filing the e-Postcard is free....

When is the e-Postcard due? How often do I need to file?
The e-Postcard is due every year by the 15th day of the fifth month after the close of your tax year (usually the same as your accounting period). For example, if your tax year ended on December 31, 2007, the e-Postcard is due May 15, 2008.

If you do not file your e-Postcard on time, the IRS will send you a reminder notice but you will not be assessed a penalty for late filing the e-Postcard. However, an organization that fails to file required e-Postcards (or information returns – Forms 990 or 990-EZ) for three consecutive years will automatically lose its tax-exempt status. The revocation of the organization’s tax-exempt status will not take place until the filing due date of the third year.

There's more - and the above are only excerpts. I deleted some of the text not particularly relevant to PTOs.