PTA and PTO tax filing: Form 990-N, 990-EZ and group exemptions

What a PTA or PTO usually files

A tax-exempt parent group files one IRS annual return each year. Which one depends on its size:

• Gross receipts normally $50,000 or less: Form 990-N, the e-Postcard. It has eight items and no financial statements.
• Gross receipts under $200,000 and total assets under $500,000 at year end: Form 990-EZ (or the full Form 990).
• Above either limit: Form 990. 990.tax does not file the full Form 990.

"Normally" is an average. A unit that is three years old or more qualifies for the 990-N if its gross receipts averaged $50,000 or less over the current year and the two before it. A single big year does not always move you off the e-Postcard. The 990-N vs 990-EZ guide has the rules for newer organizations.

Gross receipts are everything that came in

The IRS defines gross receipts as the total amounts received from all sources during the year, without subtracting any costs or expenses. For a parent group that includes membership dues, donations, grants and the full amount taken in at fundraisers. If a carnival takes in $12,000 and costs $4,000 to run, $12,000 counts toward your gross receipts.

PTA or PTO: where your exemption comes from

A PTA is a local unit of its state PTA. Depending on the state, a unit has its own IRS exemption letter or is covered by a group exemption held by the state PTA. Either way, a group exemption does not change the filing requirement. IRS Publication 4573 says it plainly: "A group exemption letter does not change the filing requirements for exempt organizations." Each covered unit files its own return unless the state PTA includes it in a group return.

A PTO is usually independent, with no state or national parent and no group exemption. It needs its own EIN and its own exemption, and it files its own return every year.

How group exemptions work, and how to check yours

A group exemption is one IRS ruling, issued to a central organization, that covers the subordinate organizations the central organization lists with the IRS. It has the same effect as an individual exemption letter. It does not file a return for you.

A group return is different. It is a single Form 990 the central organization files on behalf of some or all of its subordinates. The IRS says a subordinate included on the parent's group return does not file Form 990-N, because the group return covers it. A subordinate left off the group return files its own return.

To check where your unit stands:

1. Ask your state PTA. Under Publication 4573, the central organization, not the IRS, decides which units its group exemption covers. Ask whether your unit is on its subordinate list and whether it files a group return that includes you.
2. Look up your EIN. Search the IRS Tax Exempt Organization Search or the 990.tax nonprofit lookup, which shows a group exemption number when IRS records list one. Many subordinates are not listed separately, so a missing entry does not mean you are not covered.
3. Check for revocation. Tax Exempt Organization Search also lists organizations whose status was automatically revoked.

When it is due

The 990-N and 990-EZ are due on the 15th day of the 5th month after your tax year ends. Many PTAs run July 1 to June 30, which makes the due date November 15. A calendar-year unit files by May 15. If the date falls on a weekend or legal holiday, the next business day counts. See when Form 990 is due for upcoming dates.

Late or missed years

• Form 990-N: the IRS charges no penalty for filing late.
• Form 990-EZ: the 2025 instructions list a penalty of $25 a day, up to the lesser of $13,000 or 5% of gross receipts, unless you show reasonable cause.
• Three years in a row: an organization that does not file for three consecutive years loses its exemption automatically, effective on the due date of the third return. See automatic revocation and reinstatement.

If your treasurer missed a year, file it now. 990.tax e-files the 990-N and 990-EZ for tax years 2023 and 2024; see filing a past-due 990-N.