Although PTA is an organization that operates in the public trust, it must comply with all tax requirements as prescribed for its nonprofit status. As a result, PTAs are required to file federal tax returns depending on their gross receipts (see below).
US nonprofit tax laws require PTAs with gross receipts normally less than or equal to $50,000 to file a 990N e-postcard information report annually with the IRS.
PTAs with annual gross receipts normally more than $50,000 and less than $200,000 and total assets less than $500,000 must file Form 990EZ.
PTAs with annual gross receipts of $200,000 or more, or total assets of $500,000 or more, must file Form 990.
Both the Form 990 and 990EZ have supplemental schedules that need to be filed. If the association fails to file the appropriate schedules, the IRS will not consider the return filed. Currently the penalty is $20 per day for late/missed filings.
The IRS forms dated the year the PTA fiscal year begins are the correct forms to use. For example, if the current fiscal year begins July 1, 2019 and ends June 30, 2020, forms for the year 2019 should be used
State Taxes and Government Forms
PTAs must adhere to state filing requirements.
Regardless of their asset or revenue levels, all PTAs are required to file the Registration Renewal Fee Report (RRF-1) annually with the California Attorney General’s Registry of Charitable Trusts.
The state charity registration number (CT#) is assigned after an organization is registered. The organization must submit the CT-1 Initial Registration Form and the other documents/supporting materials listed on the form. After the organization is registered, the CT# is assigned by the Attorney General’s office. An RRF-1 cannot be processed until an organization is registered and the CT# has been assigned.
The RRF-1 can be submitted after the organization receives the letter confirming registration which will include the CT#.
Beginning with the 2019-2020 fiscal year, all nonprofits in California who file a 990N e-Postcard form with the IRS are required to complete and submit a CT-TR-1 Treasurer’s Report with their annual RRF-1 form. PTAs who file an IRS 990 or 990EZ will continue to submit a copy of that filing with their annual RRF-1 form instead.
Every PTA must file a Form 199 or 199N annually with the Franchise Tax Board (FTB). PTAs with annual gross receipts normally more than $50,000 are required to file Form 199. Please note that PTAs should check box L on the 199 form as PTAs are public charities exempt under R&TC Section 23701d and meet the filing fee exception. PTAs with annual gross receipts normally equal to or less than $50,000 are required to file Form 199N (electronic form) annually with the FTB.
Forms and instructions are available on the Attorney General’s website https://oag.ca.gov/charities.
PTAs having unrelated business income of $1,000 or more are required to file Form 109 with the Franchise Tax Board.
PTAs that are incorporated must file a Statement of Information – Nonprofit (Form SI-100) with the California Secretary of State every other year. A filing fee is required.
Insurance Coverage and Service
California State PTA is committed to ensuring you have the best possible insurance coverage and service to protect your unit and your members. Our insurance broker is AIM (Association Insurance Management Inc.), who works to ensure that our PTAs are receiving the best coverage for their premium costs. Coverage features include:
Broad coverage for events without the need for underwriting or additional premium on a case-by-case basis
$1 million limit per PTA for Directors & Officers coverage
Under General Liability, fire damage coverage of $1 million
No to low deductibles on all included coverage
Additional activities such as certain types of inflatables, bounce houses and carnivals are included in the standard coverage; however, please consult and follow California State PTA guidelines as outlined in the Toolkit and the Insurance Guide
Download the current guide through the link below to learn more about how California State PTA provided insurance protects your PTA