You really should call the IRS, explain the situation, and ask for their help and advice. They really are not the enemy - they just need to make sure that you are doing the right thing with the money since they granted your group 501c3 status. Are you sure your group is a separate entity from the school?
We were in a similar situation a couple of years ago. We had three years where no on filed taxes for our group. We got a letter from the IRS stating that we needed to file the missing 990s and we also had, on paper, huge fines to pay. However, once the 990s were filed they forgave the fines. As long as you write a letter saying that it was a mistake and not intentional then you will be ok. I have to warn you that it did end up costing us a couple thousand dollars to get a CPA to help us file the forms - mostly because all our financial records were "missing" (lost or stolen by the treasurer who didn't file the taxes). If records from the past are available it should be easier.
Once again - call the IRS immediately and ask for their advice!
Formal 501(c)(3) and raising near 100k per year? Yes, you should definitely be filing a 990. Not even close, really.
In my experience the IRS would rather have you start doing it the right way now, as opposed to being afraid to do it right way now b/c it might get you in trouble for past deficiencies. They're not out to get you. Plus -- provided your moneys were used correctly in those past years, you wouldn't owe anyway.
The 990 form is not difficult. Even easier because your group is a PTO Today Plus member group -- use your Treasuer's Toolkit (forms.ptotoday.com/store/catalog.html?id=1002
) for guidance here.
Yes, we have formal 501(c)(3) status from IRS?
Our annual budget is climbing close to $100,000.
We raise about $50,000 of that for programs, events held during the year and gifts to school like computers, digital cameras, playground equipment, etc., over the years.
What's your annual budget, mary (total dollars brought in from all sources)? Are you guys incorporated independently from school? Do you have formal 501(c)(3) status from IRS?
Not trying to scare the beejezus out of you -- these are relevant questions to my answer.
I am a new president of a PTO and joined PTO Today. It has been a great resource, but has also informed me that we are suppose to be filing a 990. No one ever did this at my school before, and I don't think they were even aware of it.
I want to do the right thing, but am afraid of fines, etc. Does anyone have any advise, experience in this matter? :confused: :confused: :confused:
-- these are relevant questions to my answer.