Lacrosse, My Treasurer would love to discuss some of these issues with you. I have just taken over as President and this is one of the issues we needed to talk about.
My email is This email address is being protected from spambots. You need JavaScript enabled to view it. Please email me and I will pass your email address onto him.
After looking at your message, I have a couple of questions. Have you filed your articles of incorporation with your state? If you have not, your board members COULD be personally liable for taxes. If you are not incorporated, you're just a bunch of people raising money for whatever you want. I'd suggest filing the paperwork for incorporation ASAP. Then you absolutely must file a federal tax return (990). Depending on whether your state has an income tax, you must also file a state form. I understand that you want the money to go to the kids, but if you have not filed for non-profit status, you are like any other group and must pay taxes. It is important to follow the federal guidelines to eliminate even the appearance of impropriaty. More groups get into trouble with parents over these kinds of money issues than anything else. Parents feel if the group is willing to cheat the government out of tax money it wouldn't be beneath them to cheat parents. That's not usually the case, but why open yourself up for all the leagal wrangling? It's only a pain the first year, and then it's just a matter of filing the return for non-profit groups which is no big deal. You'll rest easier knowing you've dotted all the i's and crossed all the t's.
WE HAVE A MOM THAT JUST STARTED COMMING TO OUR PTO MEETING LAST YEAR WHEN SHE HAS BEEN IN THE SCHOOL FOR 5 YEARS, SHE HAS DONE NOTHING BUT TRY TO FIND A WAY TO MAKE OUR LIVES MISERABLE. SHE KEPT LOOKING INTO OUR BOOKS AND IN A ROUND ABOUT WAY ACCUSED PEOPLE OF TAKING MONEY, WE ORDERED AN AUDIT JUST TO MAKE HER HAPPY. THE AUDIT CAME BACK GREAT!!!! WE KNEW IT WOULD WELL NOW SHES ON THIS TAX KICK. WE HAVE 10 PTO'S IN OUR DISTIRICT, NONE OF THEM FILE AND WE ALL MAKE OVER 25,000.00. WE WERE TOLD BY ACCOUNTNANTS AND THE IRS THAT IT IS A GREY AREA AND THAT WE PROBABLY SHOULD FILE FOR NON PROFIT BUT.......IT WILL COST 1,050.00 TO FILE THE FORMS AND THAT DOES'T INCLUDE PAYING FOR AN ACCOUNTANT TO FILL THEM OUT. WE WANT THE MONEY TO GO TO THE KIDS... AND ONCE YOU FILE FOR THIS WE ARE UNDER THE UNDERSTANDING THAT YOU HAVE TO BE AUDITED EVERY YEAR AND FILE EVERY YEAR.....MORE MONEY OUT THE DOOR. SHE SAYS IT'S A MORAL ISSUE AND SHE WILL TURN US IN!!! IS THE MORAL OR LEGAL. THIS WOMAN IS OFF HER ROCKER AND IS NOT LOOKING OUT FOR THE BEST INTEREST OF THE KIDS. ALSO THE IRS SAID THAT THE BOARD WOULD NOT BE PERSONALY RESPONSIBLE AND THEY WOULD NOT GO AFTER ANYBODY. THE ARE NOT OUT TO GET P.T.O.'S.
