How do PTAs, PTOs and other Parent Associations File Taxes?

PTAs, PTOs, and other parent associations work hard to build community among parents, teachers, and students. They also raise much needed funds to support schools, programs, and enrichment opportunities for students.

Most of these organizations are run entirely by dedicated volunteers. But many step into leadership roles without much experience in nonprofit taxes and compliance. 

If you’re a volunteer serving in a PTA, PTO, or other parent association and want to better understand your group’s tax filing responsibilities, you’ve come to the right place. Read on as we walk through whether parent associations need to file taxes, which forms to use, and how to confidently complete the filing process. 

Are PTOs, PTAs, and other parent associations required to file taxes?

If your parent association is tax-exempt, it’s easy to assume you don’t have to file taxes. But that’s not actually the case. 

Even if a parent association doesn’t owe federal income taxes, most are still required to file an annual tax return with the IRS. Filing each year is an important way to protect your tax-exempt status, stay in good standing with the IRS, and foster trust and transparency with donors and the school community you serve.

What are the tax filing requirements for PTOs, PTAs, and other parent associations? 

Most parent organizations are required to file a version of IRS Form 990 each year. Form 990 is an informational return that reports a tax-exempt organization’s finances, activities, and leadership from the previous year. 

There are several versions of Form 990. The one your PTA, PTO, or parent association must file depends on your group’s gross receipts (also known as income) and its total assets. The versions of Form 990 most commonly used by parent associations are:

• Form 990-N (AKA the e-Postcard): This version is typically used by PTOs and PTAs that normally have $50,000 or less in annual gross receipts. It’s the simplest version of Form 990.
• Form 990-EZ: This version is typically used by parent organizations that have more than $50,000 but less than $200,000 in gross receipts and total assets less than $500,000. It’s more detailed than form 990-N, but less complex than the full Form 990.

Some larger or more complex parent organizations may be required to file the full Form 990, but this is uncommon. 

How do parent associations file their taxes? 

Let’s face it. Anything related to taxes and the IRS can feel intimidating. This is especially true for parent association volunteers who may not have much experience in nonprofit tax filings.

Fortunately, filing taxes for your PTA, PTO, or other parent association is usually straightforward. Here are a few key steps you’ll need to take. 

#1 Determine which version of Form 990 you are required to file

Most parent associations are required to file a version of Form 990 each year. There are several versions, and you shouldn’t guess which one to complete.

Review your financial records to determine your gross receipts and total assets (if applicable). These figures will help you determine which version of Form 990 you are required to file. 

#2 Decide who will handle the filing 

When you’re busy running a parent association, tax filings can sometimes fall through the cracks. Board members might assume sometime else is taking care of it, which leads to missed deadlines. That’s why it’s so important to figure out who will handle your filing. 

Who’s the best person to handle filing your parent association’s taxes? It really depends on the complexity of your organization and the version of Form 990 that’s required.

If your parent association is eligible to file Form 990-N, a volunteer (most commonly the volunteer treasurer) can usually complete the filing. If your parent organization is larger or more complex, the filing process may require collaboration between the treasurer, board members, or outside accounting support.

#3 Determine your deadline 

Knowing your filing deadline is essential. That way, you can plan ahead and allow yourself enough time to complete it. 

Typically, all versions of Form 990 are due by the 15th day of the fifth month after the end of your fiscal year. For example, if your parent organization’s tax year ends on December 31, your tax filing deadline is May 15. 

#4 Gather your information 

Before you begin your filing, take some time to gather the information you’ll need. The exact requirements depend on the version of Form 990 you’re using, but commonly include: 

• Legal name and EIN
• Mailing address and contact information
• Tax year start and end dates
• Gross receipts and basic financial totals
• Names and titles of officers or board members

Having this information ready makes the filing process faster and easier. 

#5 Complete and file the required tax return

Once you’ve identified the right form, gathered your information, and confirmed your deadline, it’s time to file taxes for your parent association.  

Typically, the different versions of Form 990 must be filed online. Filing online reduces errors and speeds up the process. 

If your parent association is eligible to file Form 990-N, 501c3 Center, an IRS-authorized e-file provider, can help you complete the process in just a few minutes. Simply answer a few questions, and your 990-N is filed accurately and on time, with no IRS account required. 

What happens if a parent association fails to file their taxes? 

Most PTOs, PTAs, and other parent associations are required to file a tax return each year. But what happens if you fail to file on time? 

In most cases, there are no immediate penalties for missing a single year. However, if your parent organization fails to file for three consecutive years, your tax-exempt status will automatically be revoked. 

Losing your tax exempt status has some major consequences. It can make it harder to fundraiser, disqualify your organization from grants, and damage trust with donors and the school community you support. 

Even a single missed filing can create confusion or additional work in future years. Staying on top of your annual filing helps you avoid unnecessary headaches and keeps your parent association on solid footing. 

Get help filing your parent associations’ taxes

Filing your taxes annually is an important part of preserving your parent association’s tax exempt status and staying in good standing with the IRS. But navigating tax requirements can be a major source of stress for busy parent association volunteers.

It doesn’t have to be. 

501c3 Center can help you file your parent association’s taxes in just a few minutes. That way, you can get back to focusing on what matters most: supporting the school, students, and families you serve.