Tax Returns

 

Crucial Tax Information!!

New Tax Laws Require Different Forms than in Previous Years!

Due to changes in California Franchise Tax Board requirements for exempt organizations (nonprofits), all PTAs must file both state and federal tax forms this year.  And all PTAs, not just councils, must get a Charitable Trust number from the California Attorney General, or if they already have a charitable trust number they must file an annual form to renew it.

 

When do we file tax forms?  For most PTAs the deadline is November 15, which means work on it in September and October.  Specifically, forms are due no later than the 15th day of the fifth month after the fiscal year-end. For PTAs with fiscal year-ends on June 30, your federal and state tax forms are due on November 15.

 

What is “gross income”?  Total money coming into the PTA in the fiscal year, with the exception of the dues sent up PTA channels.  Gross income includes the total funds deposited from fundraisers, not just the net profit.  Your year-end audit and also your annual financial report have these figures.

 

What is PTA’s tax exempt number?  Sometimes called the “group number,” this is the IRS tax exemption number shared by all PTAs within California.  It is0646 for all of us.

 

Keep records of your tax filings!  Make three copies of all your tax forms, including the online receipt if you file the e-Postcards.  Keep one copy & turn in two copies to your council. Councils will forward one to 4th District.

 

Gross Income for your PTA Unit or CouncilFederal Tax Forms to the IRS (Internal Revenue Service)State Tax Forms to the FTB (California Franchise Tax Board)
Less than $25,000990N- "e-Postcard" online199N -"e-postcard" online
$25,000 to $50,000990N- "e-Postcard" online199

California Exempt Organization Annual Information Return
$50,000 to $200,000

And total assets less than $500,000
990EZ- "Short Form"

Return of Organization

Exempt from Income Tax
199

California Exempt Organization Annual Information Return
More than $200,000

And total assets more than $500,000
990

Return of Organization

Exempt from Income Tax
199

California Exempt Organization Annual Information Return

 

Note: For PTAs that require specific filing assistance, it is recommended that an accountant or tax professional specializing in nonprofit 501(c)3 organizations be consulted regarding all tax filings.

 

Charitable Trust Numbers–Not just for councils anymore!!

Do you already have a Charitable Trust Number?  All councils must have a Charitable Trust Number.  Some PTA units also already have one because they have registered with the California Attorney General in order to hold raffles or gaming events.   In any case, all PTAs need to have a Charitable Trust Number in the next year.

Click here for a CT1 instructions guide

Click here for a Charitable Trust 1 form

Click here for a Charitable Trust Checklist

 

PTAs who already have a Charitable Trust Number (CT#)PTAs without a Charitable Trust Number
File annual form RRF-1 by November 15 (for July-to-June fiscal years) with the California Attorney General. The form is at http://ag.ca.gov/

Also, register any raffles you hold at the same site.
Apply for a charitable trust number using form

CT-1 with the California Attorney General.

(This is not a Nov 15 due date, but do it this year.)

See checklists and a sample form at capta.org under Quick Link for “Tax Filing" and then "Registry of Charitable Trust."

 

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.