State Sales Tax Exemption
If the PTO does not wish to pay sales tax when they purchase items, the PTO must obtain a state sales tax exemption certificate. (Details for this process are outlined in the treasurer’s Handbook.)

PTO Tax Exempt Status and Requirements
In June of 1998, the district filed for tax-exempt status for the PTOs under the umbrella organization of the PTO Presidents Council (PPC). The IRS now recognizes the PPC as a 501(c)(3) organization making it and its member schools exempt from federal income tax and allowing donors to the individual PTOs to deduct their charitable contributions.

Building PTOs’ Rights

• Building PTOs continue to be autonomous unincorporated associations, separate from the central organization (PPC) and from each other except to the extent required to meet group exemption.
• Building PTOs continue to be self-governing and have their own bylaws and procedures for selection of officers.
• Building PTOs keep their funds segregated from the funds of the other PTOs and the PPC.
• Building PTOs determine what activities they will conduct and how funds will be expended to support their individual schools.
• Building PTOs collect sales tax and remit to the proper authorities.

Building PTOs’ Responsibilities

• Use individual tax ID number according to rules.
• Compile accounting data in prescribed format for the purpose of filing Form 990 annually (fiscal year beginning July 1).
• PPC has an agreement with a certified public accountant to prepare the individual 990 forms required for IRS reporting. Each PTO will be charged a fee for this service. Individual PTO treasurers may contact the CPA for consultation; additional fees will be charged to the school PTO for these services.
• It is the responsibility of each PTO to submit its treasurer reports to the CPA for the preparation of the joint tax filing. 
• Turn in year-end financial information by the deadline.  Any PTO who does not meet deadlines established by the CPA runs the risk of being excluded from the PPC’s filing. 

PTO Treasurer's Handbook

Questions about tax filings, tax-exempt status, EIN numbers, etc? Contact:

Mogg, Hoeye & Associates, LLC
Certified Public Accountants and Consultants
Historic Downtown Littleton
5808 South Rapp Street, Suite 265
Littleton, CO 80120
Office: (720) 945-9100
Fax: (303) 974-1115
gwen[at]mogghoeyecpa[dot]com
www.mogghoeyecpa.com

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