AboutHarvey Mechanic Expertise Federal tax issues of nonprofit 501(c)(3) public charities only. Establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer question about Nonprofit's Unrelated Business or how to fill out forms. This forum is only for legal questions about a specific nonprofit asked by members or those otherwise directly effected by the specific nonprofit organization.
Experience I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar.
Question QUESTION: Mr. Mechanic,
It appears that our PTO will not be able to seat a Board for the 2008-2009 school year. Must the organization be dissolved if this is the case and what, if any, steps do we need to take? Are there forms to complete for the State and IRS?
ANSWER: No, you do not need to dissolve unless your situation appears to be that you want to dissolve. You can just be inactive for some time. Let me know if the PTO wants to dissolve and I can inform you more on this. This forum is only for federal tax questions regarding 501(c)(3) public charities as I have explained in my profile. The IRS allows a long period of inactivity. Some states are less tolerant so you may want to check with your State's Secretary of State's Office.
Harvey Mechanic
Attorney At Law
Harvey108@hotmail.com
---------- FOLLOW-UP ----------
QUESTION: Do we still file a tax return with the IRS? How many years will the IRS allow us to simply be inactive?
Thanks!
Answer Organization with income of at least $100,000 or total assets of
at least $250,000 must file the Form 990 for the 2007 tax year.
Those exempt organization with gross receipts of less than
$25,000 do not have to file an annual return (Form 990 or Form
990-EZ) but will have to file a Form 990-N, or e-Postcard.
Just so someone files the 990-N the IRS should not be limiting the number of years that the organization may be inactive.
Harvey Mechanic
Attorney At Law
Harvey108@hotmail.com
