How To File Your 2010 Tax Return
Todo PTA debe presentar su declaración de Impuesto Federal y del Estado Este Año
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PTAs file tax forms based on 2010-2011 gross receipts. The tax form you use will say “2010” because it’s based on the start date of your fiscal year.
Notice you can now file the fast and easy Federal 990-N e-postcard if your gross receipts are less than $50,000 (the threshold was $25,000 last year):
If your gross receipts are normally equal to or less than $25,000
- Federal – File 990-N e-Postcard (easy for treasurer or president to file)
- State – File 199–N e-Postcard (easy for treasurer or president to file)
If your gross receipts are normally equal to or less than $50,000
- Federal – File 990-N e-Postcard (easy for treasurer or president to file)
- State – File 199 (recommend to use a tax professional)
If your gross receipts are normally more than $50,000 and less than $200,000 and total assets are less than $500,000
- Federal – File 990-EZ (recommend to use a tax professional)
- State – File 199 (recommend to use a tax professional)
If your gross receipts are equal to or more than $200,000 and total assets are equal to or more than $500,000
- Federal – File 990 (recommend to use a tax professional)
- State – File 199 (recommend to use a tax professional)
State Entity Number
When you file Franchise Tax Board form 199, you’ll need your new State entity number. If you don’t know your state entity number, please call or email Council.
Q & A ON TAX RETURNS FOR PTAs
What are Gross Receipts?
Gross Receipts are the total income received from all sources during the annual accounting period before subtracting any costs or expenses. Gross receipts would include all the money you raised from fundraisers, interest income, donations and ticket costs for Grad Night or other events. Do not include as income the $4.50 per member you forward to Council.
Who prepares our tax return?
If you file a 990-N or 199-N, the treasurer can do it. Ultimately the president and the executive board are responsible that taxes are filed by the deadline.
If you file a 990-EZ or 199, the California PTA strongly recommends you use a tax professional with nonprofit experience. Ask around your school community for a CPA who might donate their services. Otherwise, pay a professional – it’s a legitimate PTA expense. Tax filings are complex even for professionals. No volunteer should feel stressed to fill out a tax return.
When are our taxes due?
The due date is the 15th day of the fifth month after the fiscal year end. If your fiscal year ends June 30, you must file your tax return by November 15th. If you can’t make the deadline, file an extension.
Our PTA is filing the 990-N and/or 199-N online (also known as the e-Postcard). What information will I need?
- Federal Employer Identification Number (EIN) – from your bylaws
- Tax Year – from your bylaws
- Legal name – from your bylaws
- Mailing address – use the school mailing address from your bylaws
- Name and address of a principal officer – usually president, but can be VP, secretary or treasurer
- Website address – if your PTA has its own website
- State Entity Number
- Your PTA’s gross receipts (you need this for the State 199-N)
The Franchise Tax Board mailed letters to PTAs to give them their new state entity numbers. However, these letters were addressed to schools and in some cases did not clearly reference the PTA. If you do not know your state entity number, call your council or district president or the Franchise Tax Board exemption department at 1-800-852-5711, select Business Entitites information and then select option 4 to speak to a representative.
What is the website to file the federal 990-N?
Go to http://epostcard.form990.org/
What is the website to file the state 199-N?
Go to http://www.ftb.ca.gov/online/199N_ePostcard/index.asp
Do we need to notify Council if we receive correspondence from the IRS?
Yes. If any unit receives a notification of intention to audit, a fine or any correspondence from the IRS, you must forward a copy to Council. The president is responsible to make sure Council is notified.
Do we need to file a State Income Tax return?
Yes. Starting with 2010 tax year, all PTA units must now file Form 199. If your PTA’s gross receipts are normally equal to or less than $25,000 file Form 199N. If they are normally greater than $25,000, file Form 199.