The following information was forwarded to us from Doug Pickford, California State PTA Treasurer, and is important for all units, councils, and districts.
PTAs with Gross Receipts normally $25,000 or less and PTAs with average gross receipts less than $25,000 over the last three (3) years file a 990N. (This is a major benefit if a PTA has been filing a 990 because sometime in the past it was required to file a 990, but in the last few years revenues have significantly changed.) The 990N return is filed online at www.IRS.gov/charities.
PTAs with Gross Receipts over $25,000 and less than $100,000 and with assets less than $250,000 file a 990EZ.
PTAs with Gross Receipts over $100,000 and/or with assets of more than $250,000 file an IRS 990.
Most unit and council PTAs will not need to file a California 190 or an IRS 990T, unless they are separately incorporated. However, if the PTA has unrelated income in excess of $1000, these forms are required.
Sale of advertising (not recommended) is unrelated business income. Sponsorship income is related income and not unrelated business income.
There are exceptions to unrelated business income.
Schedule B must be completed if the PTA receives a donation of $5,000 or more from a single donor.
CONSULT YOUR TAX PROFESSIONAL!!!
THE CALIFORNIA STATE PTA STRONGLY RECOMMENDS THE PTA USE A TAX PROFESSIONAL WITH NONPROFIT EXPERIENCE TO FILE THE 990 OR 990EZ.
The due date for all of these forms is the 15th day of the fifth month after the fiscal year end.
For example, a PTA with a fiscal year end of June 30 must file these forms by November 15th. Extensions of time to file are available if properly requested using IRS Form 8868.